Compass rose in Ventnor City Hall.
By NANETTE LoBIONDO GALLOWAY
VENTNOR In a discussion following introduction of the 2021 municipal budget on April 8, the Board of Commissioners discussed possible revisions to the city's current tax exemption program, which offers incentives for property owners to rebuild or substantially improve their properties.
Commissioner Tim Kriebel said in light of current contract negotiations that could cause taxes to rise in the coming years, the city should consider revising the exemption program to generate additional tax revenue.
Looking forward to coming years, I'm just asking the question. We are going to have budgetary issues next year, he said. We are starting to see the benefits of the abatements as the early years of abatement start to sunset.
Currently, anyone who rebuilds or substantially improves their property can apply for a tax abatement, which offers a 30% reduction in taxes due on the improvement over a five-year period.
The conservative financial side of me says we know we will have issues in the future, and we have to start mitigating them now, he said.
Kriebel suggested reviewing the ordinance and possibly limiting it to certain areas of the city that need upgrading and leaving beachfront and beach blocks to their own devices.
That could be discriminatory to people who want to buy elsewhere in Ventnor, said Mayor Beth Holtzman, who suggested reducing the amount of the abatement or shortening the length of the abatement.
I would rather shorten it or change the parameters of it, she said.
The city currently offers tax abatements with a 30% reduction in the amount of taxes due on new residential construction for five years, but abatements do not exempt taxes due on the value of the land.
The 26 homeowners who received abatements in the first year of the program are now paying 100% of taxes due. This year, the city added the value of those improvements totaling $3.2 million to the tax rolls.
The city also offers an exemption program for commercial properties that phase in taxes over a five year period, with no tax due in the first year, and an additional 20% of taxes due in the following five years.
Commissioner Lance Landgraf said he is open to discussing the abatement program but noted that some of the improvements seen over the last five years has been driven by the tax incentive.
Yes, we have seen a huge increase in new homes, Landgraf said. I think some of it is driven by the abatement, but some is being driven by what we've done over the last five years in the city.
He said he would like to speak with the city's tax assessor about the program's parameters.
The commissioners also discussed their concerns about the upcoming Spring Block Party amid a statewide uptick in the number of COVID-19 positives.
The commissioners discussed changing the location to Ski Beach or postponing it until the fall shoulder season.
No actions were taken on either discussion.
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