This bill amends the "Five-Year Exemption and Abatement Law" to increase the statutory property tax exemption amounts for improvements made to 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 limits of $15,000, $45,000, or $75,000, depending on what the municipality specifies in its ordinance. The bill also clarifies that these exemptions apply to improvements made to multiple dwelling units, which were previously excluded under current law.

In addition to increasing the exemption amounts, the bill maintains provisions for municipalities to grant abatements on the assessed value of properties receiving the exemption. The abatement can be up to 30% of the annual exemption amount and can be structured differently for each year of the abatement period, which lasts for a total of five years. The bill 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