Program Offers Tax Breaks For Historic Developments In Long Valley

LONG VALLEY, NJ — A new tax break program approved by Washington Township will allow for an abatement program for properties located in designated areas in need of rehabilitation.

The township is considering providing a five-year exemption of 30 percent of the tax assessor's full and true value following the construction of new dwellings, according to the approved ordinance.

Property owners would also be able to apply for a five-year tax exemption on improvements to their properties worth up to $25,000.

Committeemen Michael Marino, Kenneth Short, Bill Roehrich, and Mayor Matt Murello voted in favor of the ordinance. Gregg Forsbrey, an ex-committee member, was the lone no vote, requesting that the ordinance be tabled so that the chair of the historic preservation committee could be included in the drafting.

To qualify for the exemption, all dwellings must be more than 20 years old and undergo improvements that result in a physical change that improves the structure's safety, sanitation, decency, or attractiveness without changing its permitted use, according to the ordinance.

During the open discussion of the ordinance, residents expressed concerns about who would benefit from its adoption—developers or homeowners—and requested clarification.

One resident, Neil Szigethy, expressed concern that the ordinance, as written, appears to encourage development within the town's historic districts.

To address this assumption, Murello stated that the program would be open to any owner of a building in any of the township's historic districts. Murello also stated that the state, not the township committee, changed the wording of the ordinance.

According to the Municipal Tax Abatement Handbook of the New Jersey Department of Community Affairs, tax exemption laws exist as a way to incentivize private developers to invest in the development of an area of a municipality that would not be economically viable without a financial incentive.

Local property owners must submit a separate application to the township committee in order to receive a tax exemption for industrial improvements that do not comply with the official requirements laid out in the ordinance.