Long Term Tax Exemption Law (PILOT)

N.J.S.A. 40A:20-1 et seq.

Authorizes municipalities to enter financial agreements with urban renewal entities (limited-dividend or nonprofit entities) undertaking redevelopment of an area in need of redevelopment, exempting project improvements (and, where housing is involved, the underlying land) from conventional property taxation in exchange for an annual service charge paid in lieu of taxes (PILOT). Under N.J.S.A. 40A:20-12, the exemption may run no longer than 30 years from project completion or 35 years from execution of the financial agreement; for a multi-project redevelopment agreement undertaken sequentially, the term may run up to 30 years from a project's completion or 50 years from execution of the first financial agreement implementing a project under that redevelopment agreement.