[Adopted 5-20-2014 by Ord. No. 1543-14]
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.
The Township hereby authorizes the utilization of tax exemption
and abatement in accordance with Article VIII, Section 1, Paragraph
6, of the New Jersey Constitution and establishes the eligibility
of dwellings and multiple dwellings for five-year tax exemptions and
abatements as authorized by N.J.S.A. 40A:21-1 et seq., throughout
the entire municipality which has been designated as an area in need
of rehabilitation but only to the extent set forth herein.
All dwellings which are at least 20 years old shall, following
receipt and approval by the Township of Hazlet of a fully executed
and complete application described herein, be exempt from taxation
of the first $25,000 in Assessor's full and true value of improvements,
as defined in N.J.S.A. 40A:21-3, for a period of five years following
completion of such improvements, commencing with the first full tax
year following completion of the improvements.
Applicants for tax exemption and abatement for improvements
to dwellings and multiple dwellings shall provide the municipal governing
body with an application setting forth:
A.
A general description of a project for which exemption and abatement
is sought;
B.
A legal description of all real estate necessary for the project;
C.
Plans, drawings and other documents as may be required by the governing
body to demonstrate the structure and design of the project;
D.
A statement of the reasons for seeking tax exemption and abatement
on the project, and a description of the benefits to be realized by
the applicant if a tax agreement is granted;
E.
A statement showing: 1) the real property taxes currently being assessed
at the project site; 2) estimated tax payments that would be made
annually by the applicant on the project during the period of the
agreement; and 3) estimated tax payments that would be made by the
applicant on the project or in the first full year following the termination
of the tax agreement;
F.
If the project is a multiple dwelling, a description of the number
and types of dwelling units to be provided, a description of the common
elements or general common elements, and a statement of the proposed
initial rentals or sales prices of the dwelling units according to
type and of any rental lease or resale restrictions to apply to the
dwelling units respecting low- or moderate-income housing;
G.
Such other pertinent information as the governing body may require.
Applications for exemption must be filed with the Hazlet Tax
Assessor within 30 days, including Saturdays, Sundays and legal holidays,
of completion of the improvement. Every application for exemption
which is filed within the time specified shall be approved and allowed
to the degree the application is consistent with the provisions of
this subsection, provided that the improvement for which application
is made qualifies as an improvement. The granting of an exemption
shall be recorded and made a permanent part of the official tax records
of the Township, which records shall contain a notice of the termination
date thereof.
No tax exemption shall be granted unless approved by resolution
of the Township Committee 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.
No exemption of improvements from taxation shall be allowed
except pursuant to statute and to duly promulgated regulations of
the Department of Community Affairs and Division of Taxation, which
include the requirements that the taxpayer submit to the Tax Assessor
of Hazlet Township a written application, approved by the Tax Assessor,
requesting said exemption which application shall be in a form prescribed
by the State Division of Taxation.
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.
The Assessor shall determine, on October 1 of the year following
the date of the completion of an improvement or construction, the
true taxable value thereof. Except for projects subject to tax agreement,
pursuant to Sections 9 through 12 of P.L. 1991, c. 441,[1] the amount of tax to be paid for the tax year which the
project is completed shall be based on the assessed valuation of the
property for the current tax year, minus the amount of the abatement,
if any, allowed pursuant to this act and pro rated, plus any portion
of the assessed valuation of the improvement or construction not allowed
an exemption pursuant to this act, also pro rated. Subject to the
provisions of the adopting ordinance, the property shall continue
to be treated in the appropriate manner for each of the four tax years
subsequent to the original determination by the Assessor and shall
be pro rated for the final tax year in which the exemption or abatement
expires.
[1]
Editor's Note: See N.J.S.A. 40A:21-1 et seq.
The granting of an exemption, or exemption and abatement, shall
relate back to, and take effect as of, the date of completion of the
project, or portion or stage of the project for which the exemption,
or exemption and abatement, is granted, and shall continue for five
annual periods from that date. The grant of the exemption, or exemption
and abatement, or tax agreement shall be recorded and made a permanent
part of the official tax records of the taxing district, which record
shall contain a notice of the termination date thereof.
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 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. and/or may cancel
the financial agreement upon 30 days' notice to the applicant.
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 by 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 Monmouth County Board of
Taxation.
A.
An ordinance adopted pursuant to this section may be amended from
time to time. An amendment to an ordinance shall not affect any exemption,
abatement, or tax agreement previously granted and in force prior
to the amendment.
B.
Application for exemptions and abatements from taxation may be filed
pursuant to an ordinance so adopted to take initial effect in the
tax year in which the ordinance is adopted, and for two years thereafter
as set forth in P.L. 1991, c. 441 N.J.S.A. 40A:21-1 et seq.), but
no application for exemptions or abatements shall be filed for exemptions
or abatements to take initial effect in the 11th year or any tax year
occurring thereafter, unless the ordinance is readopted by the governing
body pursuant to this section.
