new jersey law

PL1991, c.431 Final retroactive changes to take effect August 5, 1992 consolidated, in a more flexible law, the various long-term tax laws under which municipalities may agree with private facilities in the redevelopment projects in return for tax exemptions .

PL1991, c.441, effective the first full year, the tax after 18 Jan. 1992 acquisition of the various five-year tax abatement and exemption laws into a single, more standardized law to govern all tax deductions and the exemption regardless of the type of structure.

Long-term tax exemption law

Before 1993, this was the first full year of operation by the new long-term tax exemption law, under the provisions of NJSA40: 55C-40, the "Urban Renewal Corporation and Association Law of 1961, commonly known as the Fox Lance Act, a qualified municipality (a municipality with a "" must be in a rehabilitation "") to reduce from 15 to 20 years taxes on newly constructed industrial, commercial, cultural, residential projects, or a company, with profits on the limited profits back into the community, or from 30 to 35 years for condominium projects. Condominium projects have received 30 to 35 years to be a realistic deadline for the permanent financing. Even before 1993 under the provisions of NJSA55 :16-1-et seq., The "Limited-Dividend Nonprofit Housing Corporation or association law, a qualified municipality may abate for up to 50 years taxes on newly constructed homes. Furthermore, in framework NJSA55: 14i-1 et seq, a qualified municipality may abate for up to 50 years taxes on the newly built senior housing. Finally, in 1993, under the provisions of NJSA40: 55C-77, the "Urban Nonprofit Corporation Act 1965 "," basically the same types of properties and projects such as the Fox-Lance Act, an exemption from 20 to 25 years with all profits back to the community. In all cases where this property tax exemption laws, rather than in the control payments were required.

Starting in 1993, the provisions of NJSA40A :20-1 et seq. allow a qualified municipality to reduce taxes on the properties and projects in the same manner that the 1993 Act, with the following notable exceptions:

A new, flexible job in the tax formula was produced with a "phasing-in of payments instead of taxes on the percentage of the gross rent formula and the percentage of the total project cost formula.

The formulas for calculating the payments instead of taxes for both office and residential projects have been changed. The minimum annual service charge for office buildings was 15 to 10 percent of annual gross revenue of the project or the units of the project. The municipalities will have the possibility of calculating the payment instead of taxes to not less than 2 percent of the total project cost or project units. For housing projects of the annual service was from a minimum of 15 percent to more than 15 percent of annual gross revenue of the project or at least 2 percent to no more than 2 percent of the total project or total project cost per unit.

The payment of tax rather than formulas remains essentially unchanged for all other types of industrial, commercial and cultural projects.

Five-year exemption and control law

Prior to 1993, which was the first full year of operation under the new five-year exemption and control law, there were three types of property, a qualifying municipality (a municipality with a "" must be in a rehabilitation "") could grant a partial exemption and reduction for a period of five years.

These property types include:

Homeowner improvements (including additions and extensions), on one or two residential units for more than 20 years old. Because the regulation of the first $ 4,000, $ 10,000 and $ 15,000 for a value through the improvement could be on any exempt from taxation (see NJSA 54:4-3.72 to 3.79).

Commercial and industrial improvements and construction projects (with less than 30% increase in building volume) would have the full assessment of the improvement exempted with payments instead of taxes, based on 2% of the project cost or 15% of annual gross revenue or in-lieu of tax payment on gradually. (see N.J.S.A. 54:4-3.94 to 3.112).

Multiple improvements or conversion of other types of structures at several homes could have up to 30% of the full value of the improvement or change transformation exempt. No job in tax payments (see NJSA 54:4-3.121 up to 3.129).

Starting in 1993, the provisions of NJSA 40A :21-1-ff. "The" Five-year exemption and control law, consolidated all the provisions of the previous five years abatement statutes, which qualified for a municipality to grant partial exemptions and reductions on residential, non residential and multi-family homes in the same manner that the 1993 law, with the notable exceptions to the new law:

A new, uniform definition of "in need of rehabilitation" has been established to ensure all tax exemptions and reductions, which, if chosen, could enable an entire community to be used as an area in need of rehabilitation (and thus allow new structures to facilitate infill construction).

The new five-year law also allows for the first time, tax deductions and exemptions for new construction of single-family homes and multi-dwelling and non-residential structures are not only improvements or extensions to these properties.

The new law, the maximum allowable tax exemptions for the value added by an improvement of $ 4,000, $ 10,000 and $ 15,000 to $ 5,000, $ 15,000 and $ 25,000, or, as the municipal regulation can.

Biography: Gerald "Jerry" Dowgin "The Property Tax Doctor" and the author of the Homeowner Assessment Review Guide (http://www.propertytaxdoctor.com) a former tax assessor worked in the field of public finances in the state, and local level in New Jersey for more than three decades until his retirement in 2001. The monitoring Tax Analyst in the Office of Research and Statistics in the Department of Tax Policy in the New Jersey Department of Treasury, he worked mainly on local property tax issues. Then He joined the Office of Legislative Services (OLS) in 1983 and served as secretary of the New Jersey property tax assessment Study Commission for four years. While working in the OLS, Local Government Section he researched, developed, and the cost Senior Property Tax Freeze Bill was signed, the law and worked on the legislation that the law that virtually stopped the tax assessment practice of "spot assessments" in New Jersey, which handled many property taxpayers unfairly.