NJRA RTI Workshop - Municipal Incentives for Redevelopment: Tax Abatement

Tax abatements can be a powerful tool for municipalities to attract investments and redevelopment to their communities.  This workshop will discuss the constitutional statues that authorize the granting of short and long-term tax exemptions and the procedural process for granting tax abatements for residential and commercial projects including establishing the PILOT payment.   In addition, the workshop will provide an opportunity to participate in the discussion on the pros and cons, and the costs and benefits, of tax abatements from different perspectives.   HMFA and DEP tax abatement programs will also be discussed.

Providing long-term tax exemption is an important municipal incentive to attract development but the key question is when municipalities’ should decide to use it.  We will discuss the factors to consider when deciding whether or not to use tax abatements.  This session will also discuss specific provisions in the municipal ordinances, valuable terms in financial agreements, and tactical strategies to avoid the potential public nightmare associated with granting tax abatements.  An exercise will also be conducted to assess the potential economic and fiscal benefits of two projects.