Requires cost-benefit analyses for long term tax exemption; requires DCA to create database of these exemptions; requires new distribution of annual service charges; requires five-year tax exemption and abatement agreements be filed with certain county officials
S 2546 (Singleton) This legislation would ensure that municipalities consider and evaluate whether an investment in a redevelopment project through the grant of a long-term property tax exemption would generate satisfactory revenue returns to the municipality to justify the investment. Additionally, the bill would also weigh the financial impact on the county, school district and other local government entities, and would allow the public to do the same by making the required cost-benefit analyses and findings part of the public record.
The granting of long term tax exemptions should be approached with caution and consideration of the potential impact on the communities in which these development projects are located. Only after weighing all factors, including the community’s thoughts, should local leaders grant tax exemption status to assets that are currently generating revenue to support essential services.
NJEA urges you to support S 2546.