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Bill > A682
NJ A682
NJ A682Permits short-term tax exemption for certain improvements to dwellings damaged by natural disasters.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill would amend the "Five-Year Exemption and Abatement Law," P.L.1991, c.441 (C.40A:21-1 et seq.) to permit a municipality to adopt an ordinance declaring an area to be in need of rehabilitation for the purposes of Article VIII, Section I, paragraph 6 of the New Jersey Constitution if dwellings within the area were damaged by a natural disaster for which a state of emergency has been declared by the President of the United States or the Governor. Under that constitutional provision, municipalities, by ordinance, may provide property taxpayers a property tax exemption on dwellings in areas in need of rehabilitation for a period of five years. Under the bill, an ordinance so adopted would have to require that, in determining the value of an exemption, the assessor shall consider the additional value to those dwellings that is directly attributable to the additional space under those dwellings created by the elevation of those dwellings as not increasing the taxable value of those properties for a period of five years, notwithstanding that the market value of the real property to which the improvements are made is increased thereby. The ordinance may provide for a reduction of the exemption for each year of the exemption period. The bill also clarifies that during the exemption period, increases in value to dwellings that are not directly attributable to the additional space under dwellings created by the elevation of those dwellings, and which increase the value of those dwellings, must be reflected in the assessed value of those dwellings.
AI Summary
This bill allows municipalities to declare areas with homes damaged by presidentially or governor-declared natural disasters as needing rehabilitation, which can then qualify for property tax exemptions under existing state law. Specifically, if a municipality adopts an ordinance for such an area, the tax assessor must exclude the increased value of a home due to elevation – a common post-disaster improvement to prevent future flooding – from its taxable value for five years, even if the overall market value of the property increases. However, any other improvements that increase the home's value during this exemption period will still be reflected in its assessed value. The bill also ensures that property owners are notified of these exemptions when they receive their tax assessments.
Committee Categories
Government Affairs
Sponsors (2)
Last Action
Introduced, Referred to Assembly Community Development and Women's Affairs Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A682 |
| BillText | https://pub.njleg.gov/Bills/2026/A1000/682_I1.HTM |
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