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Tax Incentives - Tax Abatement Programs
In November 1997, the City of Camden authorized enabling legislation to offer tax abatements on local real estate taxes for business development projects.
SHORT-TERM ABATEMENT: This program is intended for development projects in which, after project completion, the increase in assessed value to the improved property does not exceed 30%. The added assessment is phased in over a five-year period, which looks as follows:
The short-term abatement is on the improvement portion of the tax assessment. The assessed value of the land on which the improvement is made remains at 100%. The abatement agreement must be approved before the project starts.
LONG-TERM ABATEMENT: For certain redevelopment projects, the city is authorized to enter into a long-term payment--in-lieu-of-tax (pilot) agreement with qualifying developers. Pilot agreements can be up to 30 years. The amount of the pilot is based on a percentage of project income, or a percent of total project costs. Agreements are approved by the city before the project begins. The short-term, five-year abatement cannot be coupled with the long-term abatement program.
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