To the editor:
In a recent Hopewell Township committee meeting, a vote was cast to provide tax abatement, called a “payment in lieu of taxes” (PILOT), to Lennar as they build nearly 400 houses behind Shop Rite. The vote was cast down party lines – four Democrats voted in favor, while one Republican cast the sole dissenting vote, citing previous experiences as why this was not a good deal for residents.
As residents, we will be told this is a nearly $100 million windfall, as Lennar will pay some $116 million in the PILOT to the municipality, while our municipal taxes, if not granted, would only see $18 million. What is not being communicated, is while the 30 year value of taxes for these units is around $130 million, only 14 percent (approximately $18 million) should go to municipal taxes. As we all know, the board of education tax is the lion’s share of our property tax, around 65 percent based on the most recent tax bill, or roughly $70 million of the 30 year value.
By granting this abatement to Lennar, the township committee is taking this revenue, forcing the school board no other choice but to raise existing taxes over these 30 years as their costs understandably increase (salaries, pensions, etc). While no member of the school board was present at the meeting to fight for their rightful tax revenue, I can hardly blame them, as they probably were not aware they were being pick-pocketed by the same administration that continues to state how closely they are working together.
You don’t need to take my word for this, there are many publications stating PILOTs are not a good municipal practice, like from the NJ State Comptroller – https://www.nj.gov/ comptroller/news/docs/tax_ abatement_report.pdf. I urge all residents to become more informed of what is happening to our town, and more importantly your tax dollars. Start speaking your opinion at committee meetings, and if not there, at the voting booth come November. We cannot continue down this path of group think, with no common sense discourse among our committee members.
Todd Brant
Hopewell Township
