Borough of Pennington, NJ
Mercer County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Borough Council of the Borough of Pennington as indicated in article histories. Amendments noted where applicable.]
[Adopted 5-1-1961 by Ord. No. 198]

§ 188-1 Exemption granted.

All tangible household personal property and personal effects located within the Borough of Pennington shall not be assessed and taxed.

§ 188-2 Applicability.

This article shall apply to taxes on tangible household personal property and personal effects due and payable in the year 1962, and thereafter so long as this article shall be in effect, and shall not affect the obligation, lien or duty to pay any taxes, interest or penalties which have accrued or may accrue by virtue of any assessment made or which may be made with respect to taxes levied for any year prior to the year 1962, nor shall this article affect the legal authority to assess and collect taxes which may be or have been due and payable prior to January 1, 1962, together with such interest and penalties as would have accrued thereon under any provisions of law amended or repealed hereby; nor shall this article invalidate any assessments or affect any proceedings for the enforcement thereof pending upon the effective date of this article or upon January 1, 1962, or during the period between said dates.

§ 188-3 Filing of copies.

A certified copy of this article shall be filed with the Division of Taxation in the Department of the Treasury of the State of New Jersey and with the County Board of Taxation of Mercer County.
[Adopted 8-3-1998 by Ord. No. 98-15]

§ 188-4 Title.

This chapter shall be known as the "Environmental Opportunity Zone Ordinance of the Borough of Pennington."

§ 188-5 Definitions.

As used in this chapter, the following terms shall have the meanings indicated:
ASSESSOR
The municipal Tax Assessor of the Borough of Pennington appointed pursuant to the provisions of Chapter 9 of Title 40A of the New Jersey Statutes (N.J.S.A. 40A:9-1 et seq.).
CONTAMINATION OR CONTAMINANT
Any discharged hazardous substance as defined pursuant to Section 3 of P.L. 1976, c. 141 (N.J.S.A. 58:10-23.11b), hazardous waste as defined pursuant to Section 1 of P.L. 1976, c. 99 (N.J.S.A. 13:1E-38), or pollutant as defined pursuant to Section 3 of P.L. 1977, c. 74 (N.J.S.A. 58:10A-3).
ENVIRONMENTAL OPPORTUNITY ZONE
Any qualified real property that has been designated as an environmental opportunity zone by the governing body in § 188-3 of this chapter.
QUALIFIED REAL PROPERTY
Any parcel of real property that is now vacant or underutilized, which is in need of remediation due to a discharge or threatened discharge of a contaminant, and which is listed in the most recent Department of Environmental Protection publication of known hazardous discharge sites in New Jersey prepared pursuant to P.L. 1982, c. 202 (N.J.S.A. 58:10-23.15 et seq.).
REMEDIATION
All necessary actions to investigate and clean up any known, suspected or threatened discharge of contaminants, including, as necessary, the preliminary assessment, site investigation, remedial investigation and remedial action.

§ 188-6 Qualified real properties designated.

The governing body of the Borough of Pennington hereby designates the following qualified real properties as environmental opportunity zones: Block 4.01, Lots 3.01, 4.01 and 12 on the borough's Tax Map.

§ 188-7 Terms and conditions of tax exemption.

In accordance with Section 5 of P.L. 1995, c. 413 (N.J.S.A. 54:4-3.154), the governing body of the Borough of Pennington hereby provides for exemptions of real property taxes for the environmental opportunity zones designated in § 188-3 of this chapter. Such exemptions shall be subject to the terms and conditions set forth in the Environmental Opportunity Zone Act, P.L. 1995, c. 413 (N.J.S.A. 54:4-3.150 et seq.), and the following items:
A. 
The property tax exemption shall be for a term of 10 years.
B. 
No exemption shall be granted pursuant to the Environmental Opportunity Zone Act except upon written application filed with the Assessor of the Borough of Pennington and is approved by the governing body by resolution. Every application shall be on a form prescribed by the Director of the Division of Taxation, in the Department of the Treasury, and provided for the use of claimants by the governing body of the Borough of Pennington. Every application for an exemption may be approved and allowed by the governing body to the degree that the application is consistent with the provisions of this chapter. The exemption shall not be granted by the governing body until the owner of the property enters into a memorandum of agreement or administrative consent order with the Department of Environmental Protection for the remediation. An exemption that is granted shall take effect upon the approval by the governing body of the Borough of Pennington, and it 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 of the exemption. The owner of the property shall deliver a copy of the approved exemption application to the Division of Local Government Services in the Department of Community Affairs.
C. 
Payment in lieu of real property taxes may be computed as a portion of the real property taxes otherwise due, according to the following schedule:
(1) 
In the first tax year following execution of a memorandum of agreement or administrative consent order, no payment in lieu of taxes otherwise due.
(2) 
In the second tax year following execution of a memorandum of agreement or administrative consent order, an amount equal to 10% of taxes otherwise due.
(3) 
In the third tax year following execution of a memorandum of agreement or administrative consent order, an amount equal to 20% of taxes otherwise due.
(4) 
In the fourth tax year following execution of a memorandum of agreement or administrative consent order, an amount equal to 30% of taxes otherwise due.
(5) 
In the fifth tax year following execution of a memorandum of agreement or administrative consent order, an amount equal to 40% of taxes otherwise due.
(6) 
In the sixth tax year following execution of a memorandum of agreement or administrative consent order, an amount equal to 50% of taxes otherwise due.
(7) 
In the seventh tax year following execution of a memorandum of agreement or administrative consent order, an amount equal to 60% of taxes otherwise due.
(8) 
In the eighth tax year following execution of a memorandum of agreement or administrative consent order, an amount equal to 70% of taxes otherwise due.
(9) 
In the ninth tax year following execution of a memorandum of agreement or administrative consent order, an amount equal to 80% of taxes otherwise due.
(10) 
In the tenth and all subsequent years following execution of a memorandum of agreement or administrative consent order, the exemption shall expire and the full amount of the assessed real property taxes, taking into account the value of the real property in its remedied state, shall be due.
D. 
The payments required in Subsection C of this section shall be made in quarterly installments according to the same schedule as real property taxes are due and payable. Failure to make these payments shall result in the termination of the exemption. In addition to the remedy set forth herein, the requirements imposed in Subsection C of this section shall be enforced in the same manner as is provided for real property taxes pursuant to Title 54 of the Revised Statutes.
E. 
The exemption applications shall be approved by ordinance on a per-application basis.
F. 
Properties for which real property exemptions under this chapter are approved shall be remediated in compliance with the remediation standards adopted by the Department of Environmental Protection pursuant to P.L. 1993, c. 139 (N.J.S.A. 58:10B-1 et seq.), or as may be amended. Prior to receiving such real property tax exemption, the owner of such property shall have entered into a memorandum of agreement or administrative consent order with the Department to perform the remediation and will complete the remediation pursuant to the agreement or order. Once remediated, such property shall be used for a commercial or industrial purpose during the time period for which the real property tax exemption is given.[1]
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

§ 188-8 Financial agreement; termination of tax exemption.

A. 
Each approved real property tax exemption shall be evidenced by a financial agreement between the Borough of Pennington and the applicant. The applicant shall prepare the agreement, and it shall contain the applicant's representation that it has complied with the provisions of the Environmental Opportunity Zone Act and this chapter. The agreement shall provide for the applicant to annually pay to the Borough of Pennington an amount in lieu of real property taxes, to be computed according to Subsection B of this section. With the approval of the governing body, the agreement may be assigned to a subsequent owner of the environmental opportunity zone.
B. 
Notwithstanding any other provision in P.L. 1995, c.413 (N.J.S.A. 54:4-3.150 et seq.), if at any time the governing body of the Borough of Pennington finds that the memorandum of agreement for remediation of a property that has received real property tax exemption under this chapter has been terminated at the option of the applicant, unless an administrative consent order is issued in its place, or that the conditions in § 188-4 of this chapter, as required in Section 5.3 of P.L. 1995, c. 413 (N.J.S.A. 54:4-3.154 et seq.), are not met, the period of the real property tax exemption shall terminate.