(TRENTON) – Legislation sponsored by Assembly Democrats Vince Mazzeo and Bob Andrzejczak to help spur owner-occupied housing development in Atlantic City to promote investment and help alleviate the property tax burden placed on taxpayers due to the downturn of the casino industry was approved Thursday by an Assembly panel.
“While there is some promising news coming out of the remaining casinos in Atlantic City, we must continue to find ways to spur development and investment in the city while growing the property tax base to help alleviate the burden on local taxpayers,” said Mazzeo (D-Atlantic). “Giving developers and investors an incentive to build housing that will attract new homeowners to Atlantic City to live in the city year round is good for the city and good for local businesses and taxpayers.”
“The devaluation of casino properties in Atlantic City has resulted in lower assessments, shifting the municipal property tax burden onto other Atlantic City property taxpayers,” said Andrzejczak (D-Cape May/Atlantic/Cumberland). “This bill can help provide much needed tax revenue to the city and give taxpayers who are shouldering the bulk of the expense some relief.”
The bill (A-462) would establish the “Atlantic City Growth Tax Credit Program” to grant tax credits to promote the development of non-rental housing in Atlantic City.
Under the bill, eligible developers could receive a tax credit equal to 50 percent of the developer’s allowed costs for land acquisition, demolition and capital improvements.
Under the bill, the program would only apply to projects located within a single neighborhood within the boundaries of Atlantic City that include at least eight newly constructed units of residential housing, and are at least 80 percent owner-occupied with no more than 20 percent of the housing units leased as market-rate rental housing. The project cannot be more than eight stories in height.
The bill was released by the Assembly Housing and Community Development.