There is a general feeling among Jersey City voters that big corporations get all the perks when it comes to tax relief. When it comes to saving millions of dollars, it’s probably true.
However, the City Council reminded the average property owner at its meeting Wednesday that there is some relief available to the average Joe or Jane. This little-known tax tool is referred to as a five-year tax exemption, but is completely different than the tax abatements routinely debated in the council chambers. Unlike the long-term tax abatements that shelter new multi-million dollar properties from paying school and county taxes for up to 20 years, this abatement simply reduces a property owner’s bill for five years by subtracting a certain amount of the assessed value on taxable property that the homeowner has just made improvements on.
This ordinance has gained the support of skeptics. Even Mia Scanga, an outspoken opponent of tax abatements, supported the tax exemption because it helps the “little guy.” Rather than protest the ordinance, she used her time at Wednesday’s meeting to comment on the item by insisting the council extend the 30-day time period allotted for property owners to apply for the abatement. Brian O’Reilly, the tax assessor, agreed that homeowners should have more than 30 days after completing their improvements to apply for the five-year exemption. Since that is a state mandated time period, though, O’Reilly suggested that the council send a request to the state for an amendment to its statute.
Satisfied with this response, Scanga added, “Maybe it’s time to find more ways to help people in the inner-city pay their taxes – because they are the voters.”
Using the five-year exemption
The five-year tax abatement allows property owners to receive a $25,000 break each year for five years on the new assessed value of the home, buffering the tax increase that might come as a result of an increased assessment. If the assessed value of the home does not climb by $25,000, the homeowner can get a break on the lesser amount.
To use an example, a property owner may have a home valued at $125,000 before deciding to refurbish the fa