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 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 total abatement not exceeding 30% of the annual exemption amount. The ordinance may also include provisions for exemptions and abatements related to the construction of new dwellings or conversions of other structures to dwelling use, with similar limits on the percentage of value that can be exempted. The changes are intended to encourage improvements to older single dwelling units by providing greater financial incentives through increased tax exemptions and abatements.

Statutes affected:
Introduced: 40A:21-5