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 levels 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 improvements will not be considered to increase the property's value for a period of five years, ensuring that the assessment on the property remains at the level prior to the improvements, unless certain conditions warrant a reduction.

Additionally, the bill allows municipalities to provide for the abatement of some portion of the assessed value of the property receiving the exemption, with the abatement period lasting up to five years and not exceeding 30% of the annual exemption amount. The ordinance may also include provisions for exemptions or abatements related to the construction of new dwellings or conversions of other structures into dwellings. This legislation is set to take effect immediately and will apply to exemptions and abatements granted starting January 1 of the first full tax year following its enactment.

Statutes affected:
Introduced: 40A:21-5