News Flash

Legislative Advocacy

Posted on: February 1, 2021

Legislation Subjecting PILOT to Prevailing Wage Advances

The Assembly Labor Committee has advanced an Assembly Committee Substitute A-1571 & A-1576.  ACS A1571 & A-1576 would make any public work done on a property or premises for which a public body provides, approves, or authorizes a tax abatement or tax exemption for the property or premises subject to the Prevailing Wage Act. This requirement will not apply to properties of a nonprofit organization defined by N.J.S.A. 54:4-3.6, NJ Economic Development Authority Business Employment Incentive Program Act, or the Casino Reinvestment Development Authority projects.

The League of Municipalities opposes ACS A-1571 & A-1576. Payments in lieu of taxes (PILOTs) are the single-most powerful tool available to municipalities to encourage property owners and developers to make improvements to property or to locate a project in a distressed or blighted area. With respect to long-term tax exemptions in particular, exemptions are granted only where the municipality has determined that the project would not occur but for the PILOT. Increasing the cost of already challenged projects by requiring a private property owner to pay prevailing wage for improvements on their property will prompt a greater demand on the municipality for a lower PILOT (thereby diminishing municipal revenue and property tax relief) and may even prevent a project from moving forward.

This is of particular concern where a project’s revenues will be limited, as in the construction of affordable housing, or where a project bears additional costs to meet other public needs or interests, such as environmental remediation, historic preservation, or the installation of infrastructure.

The requirements proposed in ACS A-1571 & A-1576 will significantly weaken the ability of municipalities to spur economic development in blighted areas, and will also impede private investment that generates jobs, quality housing, environmental cleanup, and other public goods. We urge you to reach out to your Assembly representatives expressing concern with the bill advancing.

Contact: Lori Buckelew, Assistant Executive Director, lbuckelew@njlm.org, 609-695-3481 x112.

Facebook Twitter Email

Other News in Legislative Advocacy

State FY 22 Budget Introduced

Posted on: June 24, 2021

S-1 Passes Senate

Posted on: June 14, 2021

Gov. Takes Action on Legislation

Posted on: May 18, 2021

Local Part PERS Legislation Advances

Posted on: March 26, 2021

Legislative Preview: Week of March 15

Posted on: March 15, 2021

Legislative Preview: Week of March 8

Posted on: March 9, 2021

Early Voting Legislation

Posted on: February 26, 2021

Feb. 26, 2022 Cannabis Update

Posted on: February 26, 2021

Legislature Preview: Week of February 22

Posted on: February 22, 2021

Update on S-1

Posted on: February 22, 2021

Amended Shared Service Bill S-1 Advances

Posted on: February 16, 2021

Governor Signs Tax Incentive Legislation

Posted on: January 11, 2021

Cannabis Clean Up Legislation Held

Posted on: January 11, 2021

Senate Passes PFRS 20 and Out Legislation

Posted on: December 18, 2020

Tax Incentive Legislation Moving Quickly

Posted on: December 18, 2020

Small Cell Regulation Bill Advances

Posted on: December 14, 2020

AG Issues Marijuana Charge Guidance

Posted on: December 10, 2020

Gov. Murphy Signs Plastic Ban into Law

Posted on: November 11, 2020

Vegetation Management Bill Advances

Posted on: September 21, 2020

Hospital Property Tax Bill Advances

Posted on: September 21, 2020

Governor Takes Action on Bills

Posted on: September 21, 2020

MIllioniares' Tax to Bolster State Budget

Posted on: September 21, 2020

Murphy Ok's COVID-19 Borrowing Bill

Posted on: July 19, 2020

Bridge Budget Bill Introduced

Posted on: June 26, 2020