New legislation pending in the New Jersey State Assembly (A1571/A1576), and Senate (S1956), seeks to amend the “New Jersey Prevailing Wage Act.” P.L.1963, c.150 (C.34:11-56.25 et seq.) to impose prevailing wage requirements on private redevelopment projects awarded tax abatements or exemptions (also referred to as PILOTs). Specifically, the legislation requires a contractor to include a provision in their contract that holds the contractor liable for paying a worker “a rate of wages less than the prevailing wage.” PILOTs have been a successful tax incentive tool utilized by private developers and municipalities to incentivize the redevelopment of distressed properties throughout the State. \
“This pending legislation threatens the use of this vital property tax incentive program by significantly increasing the costs to develop distressed properties. As a result, it will have a significant impact on redevelopment efforts throughout the State. The development community must come together to fight this legislation.” – Thomas S. Dolan, Chair of Property Tax Practice at MSW.
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