One Word P-I-L-O-T
If you want to know why gigantic projects like Glassworks and The Link get built in our town, keep reading. The bad news for you as a regular Joe homeowner is you DON’T get this deal but you DO get to cover the extra cost of it!
Pilot Program
Payment in Lieu of Taxes
Q: What is it:
It allows wealthy developers of large new construction projects, usually residential projects of higher density; to pay the Township for a certain amount of years a negotiated payment instead of real estate tax.
All of the money goes to the town or the vast majority of it, sometimes the municipal government will designate a small amount of the funds to the school district.
Q: How does it benefit the town government?
It allows them to get extra money in their budget without raising taxes. This has obvious political advantages.
Q: How does this benefit the school district?
It doesn’t, especially if children move into these developments.
Q: How does PILOT impact existing homeowners?
On the surface, it doesn’t. However, it does bring more residents into the town who are covered by the PILOT project. This puts any school tax increases squarely on the existing homeowners until the PILOT time frame of 10,15 or 20 years has expired and the project is subject to normal real estate taxes.
In summary, it benefits Large Real Estate Developers and the Municipal government but is detrimental to the School District and existing homeowners.
Q: How much PILOT revenue does Aberdeen get?
In 2023 1.78 million dollars out of a town tax levy of 11.8 Million dollars is 15% of the tax revenue. That means that the other 85% of us are exposed to all future school tax increases and municipal increases either by assessment or rate increase. The PILOT Properties are insulated from these increases.
CONCLUSION:
This program has been heavily used by the Incumbent Democrat Party Council over the last twenty years. PILOT in Aberdeen has been used almost exclusively for HIGH-DENSITY RESIDENTIAL DEVELOPMENTS instead of commercial developments. It has helped the Democrats in charge for the last twenty years with revenue, but has it been good for the township?
PILOT In Summary:
GOOD FOR INCUMBENT POLITICIANS
GOOD FOR TOWN PROFESSIONALS
GOOD FOR RICH DEVELOPERS OF MASSIVE DEVELOPMENTS
BAD FOR TOWNSHIP INFRASTRUCTURE
BAD FOR THE SCHOOL DISTRICT
BAD FOR PRIVATE HOMEOWNERS
IS THIS GOOD FOR YOU, YOU HAVE THE FACTS?
YOU DECIDE AND VOTE ACCORDINGLY BY NOVEMBER 7th
Read More: https://www.eisneramper.com/insights/tax/nj-pilot-program-0621/
Aberdeen Resident 