Attracting commercial, residential and industrial development to
areas most in need of redevelopment or rehabilitation is often
difficult so municipalities are increasingly utilizing New
Jersey's Tax Abatement Programs, providing for Payments in Lieu
of Taxes or "PILOTs" to help with community growth and
progress in these areas. Under these PILOT programs, municipalities
are authorized to grant developers exemptions from traditional
property taxes for a set period of time to encourage them to make
improvements to property, or to locate a project in a distressed or
"blighted" area. Instead of property taxes, developers
make an annual PILOT payment to the municipality. The PILOT payment
is typically much less than traditional taxes, and is structured so
that the municipality receives more of a benefit than it would from
usual property taxes. Not only do these exemptions save a developer
in real estate taxes, but they provide an increase in the fair
market value of the
