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Old 03-30-2008, 05:07 PM
 
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Default how does tax abatement work?

I am reading that some houses in NJ have a five or 15 year tax abatement. How does that work? Thanks.
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Old 03-30-2008, 05:19 PM
 
Location: Linden, NJ
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In what way specifically?

In a nutshell...

The concept is that cities, usually run down urban areas will offer tax abatements as incentive for buyers to purchase new construction and for builders to keep building in these areas to revitalize and as a beautification project.
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Old 03-30-2008, 05:24 PM
 
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Quote:
Originally Posted by VictorKaminski View Post
In what way specifically?

In a nutshell...

The concept is that cities, usually run down urban areas will offer tax abatements as incentive for buyers to purchase new construction and for builders to keep building in these areas to revitalize and as a beautification project.
This means that I would pay less in property tax over the course of the abatement period right?

Is is correct that as a rule of thumb the normal annual property tax is 2% of the purchase price?
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Old 03-30-2008, 05:45 PM
 
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wait a second, according to this (http://www.state.nj.us/treasury/taxa...t/gtr07hud.pdf)

we have to pay 5% property tax in Jersey City?

What?
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Old 03-30-2008, 06:44 PM
 
Location: Central New Jersey
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You pay a percentage of the taxes for the period of time and once the period of time has passed, you pay the full tax amount. It is a good program overall especially if the property in question is in a good area since overall NJ taxes are INSAINE!
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Old 03-30-2008, 09:37 PM
 
Location: Linden, NJ
85 posts, read 226,812 times
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Talking Good area abatements?

Quote:
Originally Posted by DodgeViper01 View Post
You pay a percentage of the taxes for the period of time and once the period of time has passed, you pay the full tax amount. It is a good program overall especially if the property in question is in a good area since overall NJ taxes are INSAINE!
I haven't seen too much of that, actually I haven't seen it at all

The abatements are for specific approved projects, not a blanket abatement for an entire town.
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Old 03-31-2008, 08:25 AM
 
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Quote:
Originally Posted by DodgeViper01 View Post
It is a good program overall especially if the property in question is in a good area since overall NJ taxes are INSAINE!

They are insane indeed--BOTH high income tax and high property tax. As a newcomer may I ask you guys: why you guys put up with this? New Jersey is also a democracy like the rest of the country right? Can you guys vote in politicians who can cut taxes?
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Old 03-31-2008, 10:39 AM
 
Location: Linden, NJ
85 posts, read 226,812 times
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Arrow Amount of Abatement

Quote:
Originally Posted by futurenyc View Post
This means that I would pay less in property tax over the course of the abatement period right?

Is is correct that as a rule of thumb the normal annual property tax is 2% of the purchase price?
From my experiences I've usually come across abatements where you do not have to pay any local taxes for 5 years, you still need to pay any federal taxes though.

Keep in mind abatements are on a project basis and it depends what has been granted.
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Old 03-31-2008, 07:25 PM
 
Location: Central New Jersey
1,288 posts, read 4,045,328 times
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Quote:
Originally Posted by VictorKaminski View Post
I haven't seen too much of that, actually I haven't seen it at all

The abatements are for specific approved projects, not a blanket abatement for an entire town.
New Brunswick has a few projects under this program but I would say that the best location is Hiram Square. A rather good area for NB and close to all restaurants. I would take advantage of this area for sure and might in the next few years.
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Old 03-31-2008, 07:27 PM
 
Location: Central New Jersey
1,288 posts, read 4,045,328 times
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Quote:
Originally Posted by futurenyc View Post
They are insane indeed--BOTH high income tax and high property tax. As a newcomer may I ask you guys: why you guys put up with this? New Jersey is also a democracy like the rest of the country right? Can you guys vote in politicians who can cut taxes?
Corruption is a major cause and many other things but there is little one person can do. I live here because this is where I grew up and I actually like this state but I have considered moving to FL on several occassions. Only problem is that I am established here when it comes to both work and living. Also it is hard to move since my girlfriend also works for a top magazine. Unfortunately we need to stay here to keep making what we are.
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