[HISTORY: Adopted by the Mayor and Council
of the Borough of Franklin as indicated in article histories. Amendments
noted where applicable.]
[Adopted 11-27-2012 by Ord. No. 10-2012[1]]
[1]
Editor's Note: this article also superseded former Art. I,
Tax Abatement on Commercial and Industrial Improvements, adopted 3-10-1992
by Ord. No. 1-92, as amended.
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 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 commercial and industrial structures for five-year tax exemptions
and abatements in areas in need of rehabilitation as authorized by
N.J.S.A. 40A:21-1 et seq.
Improvements to commercial and industrial structures are eligible
for a tax exemption and/or abatement for a period of five years commencing
with the completion of an improvement. The Tax 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 and/or abatement 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 commercial and industrial structures shall
be eligible for tax exemption and/or abatement commencing with completion
of the project. Any such exemption and/or 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 and/or abatement so filed shall be approved and allowed
by the Tax Assessor to the degree that the application is consistent
with the provisions of this article or the tax agreement, provided
that the improvement for which the application is made, qualifies
as such, pursuant to the provisions of N.J.S.A. 40A:21-1 et seq. and
the tax agreement. The granting of an exemption and/or 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 and/or abatement 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 and/or abatement during the period in
which such previous exemption and/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 and/or abatement. In such case,
the additional improvement or construction shall be considered as
separate for the purposes of calculating exemptions and/or 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 and/or abatement and every exemption
and/or 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/or exemption agreements shall provide
that the applicant is subject to all federal, state, and local laws
and regulations.
If, during any tax year prior to the termination of the tax
exemption and/or abatement 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 exemption
and/or abatement 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 exemption
and/or abatement agreement, the exemption and/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,[1] N.J.S.A. 54:4-1 et seq., and/or may cancel the tax agreement
upon 30 days' notice to the applicant.
[1]
Editor's Note: See N.J.S.A. 54:5-104.29 et seq.
At the termination of a tax exemption and/or abatement 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 and/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 required 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 exemption and/or abatement shall be granted, or tax agreement
entered into, with respect to 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.
Appeal of any determination made by the municipality under the
terms of this article shall be made to the Sussex County Board of
Taxation.
A.
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.
B.
Captions contained in this article have been inserted only for the
purpose of facilitating reference to the various sections, and are
not intended and shall not be utilized to construe the intent and
meaning of the text of any section.
A.
The application fee is to be paid at the time that an application
is submitted for tax exemption and/or exemption and abatement. The
minimum application fee shall be not less than $1,500 or more than
$25,000.
B.
The application fee shall be calculated as a percentage of the estimated
cost of the improvements and shall be equal to 0.25% of the estimated
cost of the improvements.
[Adopted 9-14-2021 by Ord. No. 12-2021]
"Cannabis," "cannabis cultivator," "cannabis establishment,"
"cannabis items," "cannabis manufacturer," "cannabis retailer," and
"cannabis wholesaler," mean the same as those terms are defined in
N.J.S.A. 24:6I-33.
A tax on the sale or transfer of cannabis and cannabis items
is hereby established on the following transactions:
A.
Sale of cannabis by a cannabis cultivator to another cannabis cultivator;
B.
Sale of cannabis items from one cannabis establishment to another
cannabis establishment;
C.
Retail sales of cannabis items by a cannabis retailer to retail consumers
who are 21 years of age or older; and/or
D.
Any combination thereof.
A.
The following tax rates shall apply to all sales of cannabis and
cannabis items:
B.
A transfer tax on any concurrent license holder operating more than
one cannabis establishment is imposed on the value of each transfer
or use of cannabis or cannabis items not otherwise subject to the
tax imposed pursuant to this article, from the license holder's
establishment that is located in the Borough of Franklin to any of
the other license holder's establishments, whether located in
this Borough of Franklin or another municipality. The transfer tax
shall apply to all transfers by a concurrent license holder of cannabis
items to any of the other license holder's establishments at
the same rates as set forth in this article based upon the value of
the cannabis or cannabis items transferred.
This article shall be interpreted and administered in accordance
with N.J.S.A. 40:48I-1, as the same may be amended, revised, and/or
supplemented from time to time.
