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 levels of $15,000, $45,000, or $75,000, depending on what the municipality specifies in its ordinance. The bill also clarifies that during the five-year exemption period, the assessment on the property cannot be less than the assessment prior to the improvements, unless certain conditions apply.

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 annual abatement not exceeding 30% of the 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. The changes are intended to encourage improvements to older single-family homes by providing greater financial incentives 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 after enactment.

Statutes affected:
Introduced: 40A:21-5