“A fee assessed on the state’s commercial and industrial developers to fund affordable housing would be suspended until mid-2010 under a bill released yesterday by a Senate committee.”
Punishing developers for developing does only one thing… keeps them from developing in NJ. The one bright side of the economic downturn is that government is doing whatever it can to spur investment. Repealing this tax on commercial development is a great example.
This tax was wrongheaded in the first place. Commercial development be it office, retail, medical, industrial or multifamily is good for a community. It substantially increases the tax base while putting little strain on municipal services. This is especially true for the non-residential commercial development. Not only do these developments increase the real estate tax base but they provide sales tax revenues and job creation.
So by taxing commercial development to fund affordable housing the sate has been effectively cutting off its nose to spit its face.