This bill amends the Five-Year Exemption and Abatement Law to increase the statutory property tax exemption amounts for improvements made to single dwelling units that are over 20 years old. Specifically, it raises the exemption amounts from the current limits of $5,000, $15,000, or $25,000 to new amounts of $15,000, $45,000, or $75,000, as specified by the municipality's ordinance. The bill stipulates that these amounts will not be considered as increasing the property's value for a period of five years, ensuring that property assessments remain stable during this time.

Additionally, the bill allows municipalities to provide for the abatement of some portion of the assessed value of properties receiving the exemption, with the total abatement not exceeding 30% of the annual exemption amount. The ordinance can also include provisions for exemptions or abatements related to the construction of new dwellings or conversions of other structures into dwellings. This legislation aims to incentivize improvements to older single-family homes by providing greater financial relief through increased tax exemptions and abatements. The act will take effect immediately and apply to exemptions and abatements granted starting January 1 of the first full tax year following its enactment.

Statutes affected:
Introduced: 40A:21-5