Harrison Township has been promised for years that PILOT money from redevelopment will be coming through from all of the redevelopment projects planned around the Township and that those funds will save the taxpayers money in the future. What the current mayor has not explained or revealed is how that PILOT money results in inquities and lost revenue to counties and school districts, which must be made up through other means -imposing an additional tax burden to those taxpayers who are not in a PILOT. In 2010 the NJ COmptroller issued a report examining the Municipal Tax Abatement program. See it here. tax_abatement_report
The study noted that PILOT programs
- distort municipal incentives in using and structuring abatements at the expense of schools
- permit abatement agreements which are not transparent, making it impossible for the public to compare and calculate the effect and costs of these programs
- Stakeholders who are directly affected such as residents are not involved in the decision making process
- permit abatement programs that lack accountability
- lack periodic review to account for neighborhood changes and improvements
- are often not used to bring in redevelopment which is needed in the community.