§ 696 — Tax incentives

§ 696. Tax incentives. Upon the consent of the governing body of any\nmunicipality in which an urban development action area project is or is\nto be located, the real property of a project may be exempted from local\nand municipal taxes, other than assessments for local improvements and\nland value, to the extent of all or part of the value of the improvement\nincluded in such project, for a period of twenty years from the first\ndate on which taxes otherwise would become due in the absence of the\nexemption, during the last ten years of which the exemption shall be\ndecreased in equal annual or biennial decrements according to a formula\nestablished by the governing body at the time it gives its consent to\nthe tax exemption, pursuant to this section. If the project consists of\nnew construction, the land value for purposes of determining exemptions\npermitted by this section shall be the lesser of the assessed valuation\nimmediately prior to commencement of construction or the assessed\nvaluation of the land appearing on the assessment roll in the first year\nafter completion of construction. Such exemption may only be made\navailable where the urban development action area project includes the\nconstruction of a new structure or the renovation, rehabilitation or\nconversion of an existing structure where the cost of such renovation,\nrehabilitation or construction is at least equal to one hundred percent\nof the assessed value of such structure as determined in the tax year\nimmediately preceding the governing body's grant of tax exemption to\nsuch project. Any lease of real property and appurtenances thereto for a\nperiod not exceeding twenty years shall require payments to the\nmunicipality in lieu of taxes. Such additional payments shall be\nrequired to be in equal annual or biennial escalating amounts over the\nlife of any lease for a period not exceeding twenty years so as to\nensure that payments in lieu of taxes made during the final year of such\nlease shall be equal to all local and municipal taxes. All renewals of\nany lease shall include provision for payment of rental and in lieu of\ntax payments greater than or equal to those required during the final\nyear of the original lease. Any lease of real property and appurtenances\nthereto for a period in excess of twenty years but not exceeding\nninety-nine years shall require payments in lieu of taxes. Such payments\nshall commence in the tenth year of such lease and increase in equal\nannual or biennial amounts until the twentieth year so that such\npayments commencing in the twenty-first year and continuing until the\nconclusion of the lease shall be equal to all local and municipal taxes.\n