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driftingwood2018 t1_iyavgf4 wrote

Reply to comment by Mindless-Budget9019 in Corrupted Jersey City Property Taxes by NTend7777

Wrong. PILOT payment is generally lower than the property tax amounts, helping to improve the net operating income of the developer and, in turn, encouraging them to enhance the property and raise its fair value. The municipalities also benefit as these payments received go directly to the municipality and do not have to be shared with other local taxes (school, local, etc.), although 5% of the payments received go directly to the county budgets. You’ve diverted tax dollars away from school tax revenues. And lower payment as a whole.

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driftingwood2018 t1_iyavrz9 wrote

And if you use PILOT program for pretty much any other development other than residential multi family properties, offices, industrial or retail tax revenues not going to school budget really has no impact since they aren’t creating additional costs by sending kids to the school like Multifamily properties. That’s unless you fall for ever developers pitch that no kids live in apartment buildings and they are just millennials wanting studio apartments

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Mindless-Budget9019 t1_iyawjxv wrote

Drifting wood… not sure where you got your facts from. 10% of Pilot payments go to schools not 0%. https://www.nj.com/hudson/2017/04/jersey_city_will_share_tax_abatement_revenue_with.html The reason that Pilot payments were sometimes higher than what would be paid normally was because JC maintained a low regular property tax rate. (Other than the last two years.)

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driftingwood2018 t1_iyax36z wrote

Fulops executive order only applies to future abatements. Hence my comments about us paying the price for years (decades really) of financial mismanagement. For school tax revenues that is. Not the municipal budget which receives the PILOT revenues

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