New Jersey § 54:4-3

§ 54:4-3.

The Legislature finds and determines that: a. With the enactment of the “New Jersey Urban Enterprise Zones Act,” P.L.1983, c.

303 ( C.52:27H-60 et seq. ), the State has endeavored to induce private business concerns to locate or expand

operations in certain urban areas; b. Similar encouragement should be provided for the construction of new single-family

housing units, needed to provide housing convenient to this business activity and

to stimulate neighborhood revitalization; c. The deterioration of once-flourishing residential neighborhoods is a problem of

enormous magnitude for the State of New Jersey, the solution to which has been, and

should continue to be, an overriding public concern of federal, State and local governments; d. The deterioration of those residential neighborhoods is in large measure the result

of the unwillingness of the owners of, and investors in, residential properties to

properly maintain and improve their properties, arising out of fear of the resulting

increase in property taxes; e. In many of those neighborhoods, particularly in urban centers, the deterioration

of housing stock has resulted in vacant lots, abandoned buildings and poorly maintained

properties, and the concomitant negative psychological and financial impact upon owners

of, and investors in those residential neighborhoods; f. In addition, the heavy tax burdens in many urban municipalities inhibit the development

of new housing in those municipalities, notwithstanding the fact that those municipalities

contain ample vacant land for the construction of new housing and numerous unused

or underused buildings which may be converted to housing; g. Further, while the rapidly growing demand for housing has begun to encourage some

private investment in urban residential construction, the substantial property tax

burdens in many of our urban areas have discouraged many prospective purchasers of

newly constructed housing units in those municipalities; h. These prospective purchasers may be further discouraged by the severe intra-municipal

assessment discrepancies in certain urban areas, in which older residential properties

remain assessed at a fraction of market value while newly constructed residential

properties are assessed at full market values and the owners thereof pay substantially

higher taxes than the owners of the older properties; i. Property tax abatements for the construction of certain residential structures,

and property tax abatements for the conversion of other structures to residential

use, will constitute a substantial incentive for owners and investors to improve vacant

land and underutilized structures; j. The provision of property tax abatements for new residential structures in certain

urban areas will assure the prospective purchasers of those properties that their

property tax assessments will be no greater than the assessments of older homes, thus

removing the fear of overly high tax burdens; k. In certain urban areas, the encouragement of residential construction and conversion

can be expected to make available older, more affordable housing stock, thus encouraging

both the provision of affordable housing and general urban redevelopment, while in

other urban areas, any new residential construction can be expected to contribute

to the growth and neighborhood stability needed in conjunction with incentives for

the rebirth of the business community; l . Article VIII, Section I, paragraph 6 of the Constitution of this State authorizes the Legislature to enact general laws under which municipalities may adopt

ordinances granting exemptions or abatements from taxation for limited periods of

time not in excess of five years on buildings and structures in areas declared in

need of rehabilitation in accordance with statutory criteria; and m. It is, therefore, a compelling public purpose to provide qualified municipalities

with the means of providing the appropriate abatements.