TRENTON – Senator Ronald L. Rice has introduced legislation that would limit the increase of property taxes to five percent from homes that undergo of redevelopment in urban areas.
“Urban redevelopment gives people the opportunity to take abandoned or dilapidated structures and rebuild them to their original appearance as a way to rejuvenate a community,” said Senator Rice, D-Essex.
“We need to help municipalities that are trying to rebuild their communities with affordable housing and to lessen the burden of for those who are willing to restore a neighborhood,” said Senator Rice, Chairman of the Community and Urban Affairs Committee. “My bill would be an incentive for potential owners who could not afford to rebuild because of the fear of a drastic property tax increase. This bill would keep the property tax rate at about the same level as others in the neighborhood that have similar homes.”
The bill, S-2299, would limit the increase of property taxes assessed on a new structure, to five percent above the owner’s most recent tax bill. The five percent limit on the increase would remain in effect until the new building has its true value assessed as part of a municipal-wide revaluation.
“Without this bill, many potential home owners are priced out of their communities because of the higher taxes assessed to the now, more valuable home rebuilt in the community,” said Senator Rice. “In New Jersey we need to maintain affordable housing by encouraging the renovation of property without resulting in a drastic increase in property taxes.”
The bill has been referred to the Senate Community and Urban Affairs panel.