[HISTORY: Adopted by the Mayor and Council of the Borough
of Washington as indicated in article histories. Amendments noted
where applicable.]
[Adopted 4-6-2004 by Ord. No. 6-2004]
The definitions contained in N.J.S.A. 40A:21-3 are incorporated
herein by reference as if set forth at length. As used in this article,
words shall have the meanings as so defined unless a different meaning
is expressed.
A structure with two or more different uses, such as, but
not limited to, residential, commercial or industrial.
The Borough hereby authorizes the utilization of tax exemption
and abatement in accordance with Article VIII, Section I, paragraph
6, of the New Jersey Constitution and establishes the eligibility
of multiple dwellings, mixed-use structures, commercial and industrial
structures for five-year tax exemptions and abatements as authorized
by N.J.S.A. 40A:21-1 et seq., throughout the entire municipality,
but only to the extent set forth herein.
Improvements to multiple dwellings are eligible for tax exemption.
The Assessor's full and true value of the improvements shall be regarded
as not increasing the value of the property for a period of five years
commencing with the completion of an improvement, notwithstanding
that the value of the property to which the improvements are made
is increased thereby. During the exemption period, the assessment
on the property shall not be less than the assessment existing thereon
immediately prior to the improvement unless there is damage to the
multiple dwelling through action of the elements sufficient to warrant
a reduction. As used in this section, "improvements" shall not be
construed to include an increase in the number of dwelling units nor
the reduction of the total number of dwelling units to less than three.
Improvements to mixed-use, commercial and industrial structures
are eligible for tax exemption for a period of five years commencing
with the completion of an improvement. The Assessor's full and true
value of the improvements shall be regarded as not increasing the
value of the property, notwithstanding that the value of the property
to which the improvement is made is increased thereby. During the
exemption period, the assessment on the property shall not be less
than the assessment existing thereon immediately prior to the improvements
unless there is damage to the structure through action of the elements
sufficient to warrant a reduction.
Construction of new mixed-use, commercial and industrial structures
shall be eligible for tax exemption or exemption and abatement commencing
with completion of the project. Any such exemption and abatement shall
be subject to the owner and Borough entering into a tax agreement
as provided by N.J.S.A. 40A:21-10.
A.
The applicant shall furnish to the municipality all the information
required by N.J.S.A. 40A:21-9. In addition, every applicant shall
file the application form prescribed by the Director of the New Jersey
Division of Taxation in the Department of Treasury with the Tax Assessor,
as a condition to approval, within 30 days, including Saturdays and
Sundays, following the completion of the improvement. Every application
for exemption or exemption and abatement so filed shall be approved
and allowed by the Assessor to the degree that the application is
consistent with the provisions of this article, provided that the
improvement for which the application is made qualifies as such pursuant
to the provisions of this article and the tax agreement. The granting
of an exemption or exemption and abatement and tax agreement, if appropriate,
shall be recorded and made a permanent part of the official tax records
of the taxing district, which record shall contain a notice of termination
date thereof.
B.
No tax exemption shall be granted unless approved by resolution of
the Borough Council on an individual basis after review, evaluation
and approval of each application for compliance with the terms of
this article and the underlying statute, rules and regulations.
C.
The tax agreement shall provide for the applicant to pay to the Borough
in lieu of full property tax payments an amount annually to be computed
by one, but in no case a combination, of the three formulas set forth
in N.J.S.A. 40A:21-10, viz., the "Cost," "Gross revenue," or "Tax
phase-in" basis.
An additional improvement or construction, completed on a property
granted a previous exemption or abatement during the period in which
such previous exemption or abatement is in effect, shall be qualified
for an exemption and/or abatement just as if such property had not
received a previous exemption or abatement. In such case, the additional
improvement or construction shall be considered as separate for the
purposes of calculating exemptions and abatements, except that the
assessed value of any previous improvement or construction shall be
added to the assessed valuation as it was prior to that improvement
or construction for the purpose of determining the assessed valuation
of the property from which any additional abatement is to be subtracted.
Every application for exemption or abatement and every exemption
and abatement granted shall be subject to all the provisions of N.J.S.A.
40A:21-1 et seq., and all rules and regulations issued thereunder.
All tax abatement and exemption agreements shall provide that
the applicant is subject to all federal, state and local laws and
regulations.
The percentage which the payment in lieu of taxes bears to the
property taxes which would have been paid had an abatement not been
granted for the property under the agreement shall be applied to the
valuation of the property to determine the reduced valuation of the
property to be included in the valuation of the municipality for determining
equalization for county apportionment and school aid during the term
of the tax abatement agreement covering the property.
If during any tax year prior to the termination of the tax abatement
or exemption agreement the applicant ceases to operate or disposes
of the property or otherwise fails to meet the conditions of eligibility,
the tax otherwise due if there had been no abatement or exemption
shall become due and payable by the property owner. The Tax Assessor
shall notify the property owner and the Tax Collector forthwith, and
the Tax Collector shall, within 15 days thereof, notify the owner
of the property of the amount of taxes due. However, with respect
to sale or other disposal of the property for which it is determined
that the new owner of the property will continue to use the property
pursuant to the conditions which were set forth in the tax abatement
or exemption agreement, the exemption or abatement shall continue.
In the event of default by the applicant, including but not
limited to the failure to make timely tax or in-lieu-of-tax payments
to the municipality, the municipality shall notify the applicant,
in writing, of said default. The applicant shall have 30 days to cure
any default. Following the thirty-day cure period, the municipality
shall have the right to proceed against the property pursuant to the
In Rem Tax Foreclosure Act, N.J.S.A. 54:4-1 et seq.,[1] and/or may cancel the financial agreement upon 30 days'
notice to the applicant.
[1]
Editor's Note: The provisions of the In Rem Tax Foreclosure
Act are contained in N.J.S.A. 54:5-104.29 et seq.
At the termination of a tax abatement or exemption agreement,
a project shall be subject to all applicable real property taxes as
provided by state law and local ordinance.
No application for tax exemption or abatement shall be accepted
by the municipality unless accompanied by full payment of the required
application fee. Such fees shall be based on total project cost as
set forth in a schedule on file with the office of the Municipal Clerk.
These fees shall be received as compensation for the legal review
and related work of the municipality's departments and agencies.
The Municipal Clerk is hereby authorized and directed to forward
a certified copy of this article to the State of New Jersey Department
of Community Affairs.
No exemptions shall be granted for any property for which property
taxes or any other municipal charges are delinquent or remain unpaid
or for which penalties for nonpayment are due for a period of at least
one year, or for any property not being used in conformance with local,
state or federal ordinance, regulation or statute. In addition, one-
and two-family structures which contain home-based businesses are
ineligible for the tax exemption or abatement programs described herein.
Appeal of any determination made by the municipality under the
terms of this article shall be made to the Warren County Board of
Taxation.
Where consistent with the context in which used in this article,
words importing the singular shall include the plural; words importing
the plural shall include the singular; and words importing one gender
shall include all other genders.
[Adopted 8-11-2021 by Ord. No. 2021-07]
It is the purpose of this article to implement the provisions
of the New Jersey Cannabis Regulatory, Enforcement Assistance, and
Marketplace Modernization Act, P.L. 2021 (approved February 22, 2021),
and the Jake Honig Compassionate Use Medical Cannabis Act, P.L. 2009,
c. 307 (approved January 18, 2010), amended by P.L. 2019, c. 153 (approved
July 2, 2019), codified at N.J.S.A. 24:6I-1 et seq., which authorizes
the governing body of a municipality to adopt an ordinance imposing
a transfer tax on cannabis products, which shall be in addition to
any other tax or fee imposed pursuant to statute or local ordinance
or resolution by any governmental entity upon the dispensary.
The definitions set forth in the New Jersey Cannabis Regulatory,
Enforcement Assistance, and Marketplace Modernization Act (P.L. 2021,
c. 16) and the Jake Honig Compassionate Use Medical Cannabis Act (N.J.S.A.
24:6I-1 et seq.) are incorporated herein and shall have the same meanings.
There is hereby established a medical cannabis transfer tax
in the Borough of Washington, which shall be fixed at a uniform percentage
rate of 2% on the purchase price of any medical cannabis dispensed
by a medical cannabis dispensary in the Borough, including medical
cannabis that is furnished by the dispensary to a medical cannabis
handler for delivery to a registered qualifying patient or the patient's
caregiver, and which shall be in addition to any other tax or fee
imposed pursuant to statute or local ordinance or resolution by any
governmental entity upon the dispensary.
A.
There is hereby established a transfer tax at a uniform percentage
rate not to exceed 2% of the receipts from each sale by a cannabis
cultivator; 2% of the receipts from each sale by a cannabis manufacturer;
1% of the receipts from each sale by a cannabis wholesaler; and 2%
of the receipts from each sale by a cannabis retailer located in the
Borough, which shall be in addition to any other tax or fee imposed
pursuant to statute or local ordinance or resolution by any governmental
entity upon the dispensary.
B.
There is hereby established a user tax at the equivalent transfer tax rates on any concurrent license holder, as permitted by Section 33 of P.L. 2021, c. 16, operating more than one cannabis establishment. The user tax shall be imposed on the value of each transfer or use of cannabis or cannabis items not otherwise subject to the transfer tax imposed pursuant to Subsection A of this section, from the license holder's establishment that is located in the Borough to any of the other license holder's establishments, whether located in the Borough or another municipality.
A.
The transfer tax or user tax set forth in §§ 79-20 and 79-21 shall be paid to the Borough no later than February 1 of each year with a report certified as true and accurate by the Chief Financial Officer, Comptroller, or other similarly situated person showing the gross revenues for the cannabis establishment for each month of the preceding year. The Borough may require that the cannabis establishment obtain a financial report from an independent accountant certifying as to the annual revenues for the preceding year.
B.
Every cannabis establishment required to collect a transfer tax or
user tax imposed pursuant to this article shall be personally liable
for the transfer tax or user tax imposed, collected, or required to
be collected under this article.
C.
The Borough shall enforce the payment of delinquent transfer or user
taxes imposed pursuant to this article in the same manner as provided
for municipal real property taxes, including the accrual of interest.
In the event that the transfer tax or user tax imposed pursuant to
this article is not paid as and when due by a cannabis establishment,
the unpaid balance, and any interest accruing thereon, shall be a
lien on the parcel of real property comprising the cannabis establishment's
premises in the same manner as all other unpaid municipal taxes, fees,
or other charges. The lien shall be superior and paramount to the
interest in the parcel of any owner, lessee, tenant, mortgagee, or
other person, except the lien of municipal taxes, and shall be on
a parity with and deemed equal to the municipal lien on the parcel
for unpaid property taxes due and owing in the same year. The Borough
shall file, in the office of its Tax Collector, a statement showing
the amount and due date of the unpaid balance and identifying the
lot and block number of the parcel of real property that comprises
the delinquent cannabis establishment's premises. The lien shall
be enforced as a municipal lien in the same manner as all other municipal
liens are enforced.
