Looking to attract new homeowners to Atlantic City, Assemblyman Vincent Mazzeo (D-Atlantic) sponsored a measure that would create tax credits for eligible developers planning to construct non-rental housing within the city. The legislation passed the Assembly Community Development and Affairs Committee on Monday.
The bill (A-283) would create the “Atlantic City Growth Tax Credit Program,” which aims to increase Atlantic City’s resident property tax base by attracting new homeowners to the city. In turn, this will allow the city to become less reliant on casinos and other commercial properties for tax revenue.
Developers who qualify for the program would be granted tax credits equal to 50% of the costs for land acquisition, demolition and capital improvements. Eligible projects would have to be located within a single neighborhood, could not exceed eight stories and would need to create at least eight new housing units of which at least 80% would be owner-occupied and no more than 20% would be rented.
Upon the legislation advancing, Assemblyman Mazzeo released the following statement:
“In order to prevent the burden of high property taxes from falling on Atlantic City’s existing taxpayers, we must find a way to attract new homeowners to the city and grow the property tax base. Offering incentives to developers and investors who can build new, affordable owner-occupied housing is a great way to put money into Atlantic City while ensuring that the city and its residents can prosper without relying on tax revenue from commercial properties.”
The bill now heads to the Speaker for further consideration.