On Tuesday, the full Senate will be considering S-1403, as amended, requiring contractors to file payroll records with the Department of Labor for projects that have received financial assistance in the form of grants; loans; loan guarantees; expenditures; investments; tax exemptions or other financial assistance approved, funded, authorized, administered or provided by public bodies, or undertaken to fulfill any condition of receiving any of the financial assistance.
The amendments to S-1403 clarify that employers and contractors who are not currently required to be registered under the Public Works Contractor Registration Act are exempt from registration. However, we are concerned that the language as written is vague and unclear and could lead to confusion and litigation.
Payment in Lieu of Taxes (PILOTs) is the single most powerful tool available to municipalities to encourage property owners and developers to make improvements to the 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 without the PILOT. Increasing the cost of already challenged projects will prompt greater demands on municipalities for lower PILOTs, thereby diminishing municipal revenue and property tax relief. It may even prevent projects 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.
Contact: Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.