As previously reported here on FAA News, Lakewood's Township Committee last year granted short and long-term tax abatements to 29 new commercial buildings around town. This resulted in a loss of over $6.88 million in tax revenue for this year. As a result of all these tax cuts, the Committee increased taxes for the rest of us nearly $8 million.
Never ones to just sit content, the Township Committee today paved the way for yet additional tax cuts for a new commercial building.
Ordinance 2024-045 grants a 5 year tax abatement to 1364 River Avenue.
(5 year tax abatements are structured so in the first year they pay 0%, then an additional 20% each year for the next 4 years.)
The Ordinance states:
The Township Committee finds that this project qualifies as “construction” and as a “project;" that the project will significantly contribute to the expansion of commerce within the Township and with the eventual increase to the tax base of a substantial ratable; that the construction of these facilities will provide increased job opportunities within the Township; and that the project shall contribute toward the inducement of other projects to locate within the Township, thereby enhancing and improving the economic climate of the Township.
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4 comments:
It’s called a tax abatement.
It is a fairly common product that is available in many locations, including big cities to encourage development.
Why do they give businesses property tax abatements? It’s unfair to us hard working common folk who pay unbelievable amounts of property tax. They say it promotes growth, well so does me having children and yet they aren’t abating my property taxes.
abatement for 5 years is better then pilot 30 yers
Abatements are specifically to attract business which would not come to the town without the abatement. These are not abatements but rather freebies these businesses businesses have no other place to be buttoned Lakewood would be built-in any case.GEZEL HARABIM
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