Tax Abatements: Understanding them and Whether to Use them or Not as an Economic Incentive

New Jersey Redevelopment Authority - Redevelopment Training Institute

#3022702

Tuesday, March 26, 2013
9:30 a.m. - 4 p.m. EDT

Trenton, NJ, United States

CM | 6

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Overview

The decision to offer tax abatements and how much are not straightforward. Municipalities must consider various factors to determine project eligibility, tax payments, duration, economic and fiscal benefits, and the need for the tax abatements. Come hear real estate attorneys and consultants share their prospective and how to assess properly whether or not a municipality should exempt a project from full taxation. Municipalities are coming to the realization that they are true partners in the redevelopment and development of projects. Like any other investor, municipal officials must analyze their “investment” in development projects to see if they have a positive or negative impact on the municipal budget and meet the municipality’s goals and objectives. Fiscal impact studies are an important tool in determining if a project is feasible from the municipal’s prospective. This workshop session will review the tax abatement law, the process and the potential economic and fiscal benefits of the project from the municipality prospective, including any economic spillover benefits of the project. Also, the workshop will explore the different contractual obligations between the developer and the municipality, and how to calculate and negotiate payments to maximize revenue for the municipality. Participants can expect to learn and discuss: • Key provisions of the short- and long-term tax exemption laws • The property tax exemption and abatement process • The negotiated and non-negotiable items in the financial agreement • Fiscal considerations used to determine whether or not a PILOT should be given • Formulas used to calculate Payment in Lieu of Taxes (PILOT) for long-term abatements

Resource URL

www.njra.us/rti

Speakers

Arthur Linfante, III, MAI, CRE

Confirmed Speaker

Arthur A. Linfante, III, MAI, CRE is a Principal at Value Research Group, LLC in Livingston, New Jersey. Mr. Linfante is licensed to appraise property in New Jersey, Pennsylvania and New York. He has affiliations with the Appraisal Institute; the National Association of Realtors and many other industries recognized organizations ... Read More