Tax Incentive Program

 

Tax Incentive Grant Program Requirements

The following requirements must be met to qualify for the tax incentive grant program:

  1. Applicant must be the property owner and tax payer.
  2. Current or pre-construction and post-construction tax values must be certified by the Johnston County Tax Administrator.
  3. Application for the tax incentive grant must be made prior to the beginning of the project.
  4. The tax incentive grant program encompasses all parcels within the town limits of Princeton; however, this program does not replace or supersede the existing Downtown Area Revitalization Program.
  5. Any property owner within the project area is eligible to apply.

 

Tax Incentive Grant Program Procedures

The tax incentive grant program will operate as follows:

General

  1. Application must be made and submitted to the Town Administrator.
  2. The applicant will be required to pay the full amount of the newly appraised tax value of the property on or before January 5th each year in order to receive the tax incentive grant.
  3. The applicant must provide proof of timely tax payment in conjunction with an incentive tax grant reimbursement request on or before April 30th each year.
  4. The initial post-construction tax value determined by the Johnston County Tax Administrator will be used for the entire term of the tax incentive grant program.
  5. Applications will be accepted beginning with the adoption of this resolution through December 31, 2011.
  6. The applicable time period for the tax incentive grant program will be two (2) consecutive tax years for projects not classified as infill development or major commercial development. 
  7. The applicable time period for the tax incentive grant program for projects that qualify as infill development will be four (4) consecutive tax years.
  8. The applicable time period for the tax incentive grant program for projects that qualify as major commercial development will be five (5) consecutive years on a sliding scale as follows:

                                Year 1          100%                          Year 4            40%

                                Year 2            80%                          Year 5            20%

                                Year 3            60%

  1. The benefits of the tax incentive grant program will transfer with the sale of any participating parcel for the remainder of the applicable time period.
  2. The tax incentive grant program will not obligate the Town of Princeton to extend additional service or incur any other infrastructure cost.
  3. Expansion or renovation projects will qualify for the tax incentive grant program only if sufficient evidence is provided at the time of application to ensure that the resulting post-construction tax value will increase by at least $20,000.
  4. It will be the responsibility of the applicant to secure both the current (pre-construction) and post-construction tax values from the Johnston County Tax Administrator.

Residential

  1. Upon application approval, all required permits for construction must be obtained within 90 days of approval notification.  This includes, but is not limited to driveway, zoning and building permits.
  2. In order to receive a tax incentive grant, construction must be competed within 180 days of the issuance of the building permit.  The applicant may request a construction time extension for extenuating circumstances by letter at any time prior to the anticipated completion date.
Commercial
  1. Upon application approval, all required permits for construction must be obtained within six (6) months of approval notification.  This includes, but is not limited to driveway, zoning and building permits.
  2. In order to receive a tax incentive grant, construction must be competed within one (1) year of the issuance of the building permit.  The applicant may request a construction time extension for extenuating circumstances by letter at any time prior to the anticipated completion date.