New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S378

Introduced
1/11/22  
Refer
1/11/22  

Caption

Allows municipalities to adjust deadline to apply for short-term exemption or abatement for dwellings; requires provision of notice to purchasers of dwellings in areas in need of rehabilitation under certain circumstances.

Impact

The impact of S378 is significant for local municipalities as it empowers them to adopt or modify ordinances governing tax exemptions and abatements. By allowing subsequent purchasers of rehabilitated properties a window of one year to submit exemption applications following the completion of improvements, the legislation supports better financial planning for homeowners. It recognizes the challenge faced by buyers, particularly in rehabilitation areas, in dealing with tax exemptions that may have lapsed due to prior owners' failure to apply timely.

Summary

Senate Bill S378 aims to amend the existing property tax exemption and abatement provisions under P.L.1991, c.441 in New Jersey, allowing municipalities more flexibility regarding short-term tax exemptions. Specifically, the bill enables municipalities to adjust deadlines for submitting applications for tax exemption or abatement for improvements made to dwellings in areas designated as needing rehabilitation. The main objective is to facilitate a smoother transition for new homeowners inheriting improvements made by previous owners that may otherwise go unrecognized by the tax assessor without timely application submissions.

Contention

Notable points of contention surrounding S378 may arise from varying interpretations of local governance and the financial implications for municipalities. Opponents may question whether the bill would result in a loss of tax revenue for municipalities if numerous homeowners take advantage of the extended application window. Additionally, there may be concerns regarding the implementation of proper notification by current homeowners to subsequent purchasers about the potential for tax exemption, particularly if compliance is not adequately enforced.

Companion Bills

NJ A1223

Same As Allows municipalities to adjust deadline to apply for short-term exemption or abatement for dwellings; requires provision of notice to purchasers of dwellings in areas in need of rehabilitation under certain circumstances.

Previously Filed As

NJ A2037

Allows municipalities to adjust deadline to apply for short-term exemption or abatement for dwellings; requires provision of notice to purchasers of dwellings in areas in need of rehabilitation under certain circumstances.

NJ A1223

Allows municipalities to adjust deadline to apply for short-term exemption or abatement for dwellings; requires provision of notice to purchasers of dwellings in areas in need of rehabilitation under certain circumstances.

NJ A2614

Increases maximum allowable five-year property tax exemption and abatement for improvements to certain dwellings located in areas in need of rehabilitation.

NJ A787

Permits short-term tax exemption for certain improvements to dwellings damaged by natural disasters.

NJ A2177

Permits short-term tax exemption for certain improvements to dwellings damaged by natural disasters.

NJ S474

Permits short-term tax exemption for certain improvements to dwellings damaged by natural disasters.

NJ S895

Permits short-term tax exemption for certain improvements to dwellings damaged by natural disasters.

NJ A5503

Increases statutory property tax exemption amounts for improvements to dwelling units under "Five-Year Exemption and Abatement Law."

NJ S3915

Requires municipalities to share certain payments in lieu of property taxes with school districts; informs counties, school districts, and DCA of certain information related to property tax exemptions and abatements.

NJ A971

Requires municipalities to share certain payments in lieu of property taxes with school districts; informs counties, school districts, and DCA of certain information related to property tax exemptions and abatements.

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