The certification of new construction or improvements increases what in the context of local taxes?

The certification of new construction or improvements increases the "CAP" base, which refers to the base amount upon which a municipality can calculate its property tax levy limit. The CAP base is critical because it determines the maximum amount of revenue a municipality can collect through property taxes under state laws that regulate tax increases. When new properties are constructed or existing properties are improved, the overall value of taxable property in that municipality increases. This increase in property value contributes to a higher CAP base, allowing the municipality to raise additional revenue to fund public services, infrastructure, and other essential functions.

This aspect is particularly important in municipalities where growth is encouraged to support economic development, ensuring that the municipality can maintain and enhance services for its residents as the tax base expands.