Real Estate
Tax Abatement Greenlighted For Belleville Apartment Building
A mixed-used building on Union Avenue will get a five-year tax abatement. Single-family homeowners are also eligible for the same deal.
![The Belleville Town Council voted to approve a five-year tax abatement for a mixed-use property at 527-535 Union Avenue during their meeting on Aug. 13.](https://patch.com/img/cdn20/shutterstock/22844250/20240815/030229/styles/patch_image/public/shutterstock-1127654243___15150125638.jpg)
BELLEVILLE, NJ — The Belleville Town Council voted to approve a five-year tax abatement for a mixed-use property at 527-535 Union Avenue during their meeting this week.
Currently home to a luxury apartment building known as The Maximillian, the property was previously occupied by an auto service station until it was demolished. Construction on the now-occupied building began a few years ago.
According to details presented at Tuesday’s meeting, the owner – 527 Union Ave LLC – will pay the full amount of taxes on the land value of the property.
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Municipal tax assessor Kevin Esposito said the owner’s tax payments on the “improvement” value of the property will remain at zero the first year, then rise by 20 percent each following year until it reaches the full amount. The property will reach a total assessment of $3.5 million after the abatement runs its course.
“They do pay an abatement on only the improvement, from where it was to where it went,” Mayor Michael Melham explained. “So if that improvement is only a couple hundred thousand dollars, they get a discount on that improvement only.”
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According to Melham, the five-year abatement approved this week is not a payment in lieu of taxes (PILOT), and the local school district will receive its full proportional share of tax revenue.
The five-year tax abatement granted to the owners of The Maximillian is also available to eligible single-family homeowners in Belleville.
In 2020, the council approved a resolution that designated the entire town as an “area in need of rehabilitation.” The resolution allows residents who make improvements to their homes to apply for a tax abatement from the township.
The move saw opposition from critics, however, who claimed that real estate developers would also be able to take advantage of the tax breaks. See Related: Entire Town Of Belleville ‘In Need Of Rehab?’ It Could Happen
See the town code regulating tax abatements here.
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