City Recovers Additional $2.6 million in Tax Abatement Audit
In an ongoing aggressive tax abatement audit, the City of Jersey City recovered an additional $2.6 million.
The most recently recovered funds comes from Tower America Urban Renewal and The Newport Hotel One, better known as the Marriot, each shelling out $1.5 million and $1.1 million respectively in excess profits. These payments have been outstanding since 2005 and are in line with the developers’ financial agreement with the City and State law.
This comes quickly after last month’s recovery of $2.3 million from EQR Lincoln Urban Renewal Entity, a developer of a downtown apartment complex. The intensive audit discovered the developer had not paid the amount it agreed after beginning to collect excess profits in 2007.
“All abatements are being reviewed as part of the audit to ensure that the city and its taxpayers are receiving the full amount required by these financial agreements,” said city spokeswoman Jennifer Morrill.
When asked if there was an expected value to come from the result of this audit, Morrill responded, “It is impossible to speculate the amount this audit could produce, however, already in this first three months nearly $5 million has been recovered for the city.”
Mayor Fulop campaigned on a promise to audit the tax abatements that were previously awarded to developers and continues to keep a hard line on the issue.
“Enforcing tax abatements is a priority for my administration and the rest of our taxpayers deserve nothing less,” stated Mayor Fulop. “We will continue to review all of the City’s abatements to determine if we are receiving the entire revenue owed the City, as this funding can be used to support necessary services and valuable programs. Our commitment has been to hold developers accountable, and that is exactly what we are doing.”
JCI file photo