[Adopted 4-22-2008 as Sec. 1 of Ord. No. 2008-1]
The Township of Willingboro, pursuant to N.J.S.A. 40A:21-1 et
seq., shall utilize the tax exemption and abatement provisions authorized
by the New Jersey State Legislature in the consideration of all applications
for abatements or exemptions under the five-year exemption and abatement
laws for commercial and industrial projects as defined herein.
The following words, terms and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning:
That portion of the assessed value of a property as it existed
prior to construction, improvement or conversion of a building or
structure thereon, which is exempted from taxation.
A fee, in lieu of taxes, to be paid by an entity on the buildings
and improvements of the project, and in some instances on the land,
to a municipality. The annual fee shall not be more than 15% for low-
and moderate-income projects and not less than 10% for all other projects
in which a project is undertaken in units or from the total project
if it is not undertaken in units. If the annual gross revenue for
a project cannot be ascertained, then there shall be another calculation
for the annual fee pursuant to N.J.S.A. 40A:20-12b(1).
A portion or all of a Township which has been determined
to be an area in need of rehabilitation or redevelopment pursuant
to the "Local Redevelopment and Housing Law," (N.J.S.A. 40A:12A-1
et al.).
A structure or part thereof used for the manufacturing, processing
or assembling of material or manufactured products, or for research,
office, industrial, commercial, retail, recreational, hotel or motel
facilities, or warehousing purposes, or for any combination thereof,
which the Township Council determines will tend to maintain or provide
gainful employment within the Township, assist in the economic development
of the Township, maintain or increase the tax base of the Township
and maintain or diversify and expand commerce within the Township.
It shall not include any structure or part thereof used or to be used
by any business relocated from another qualifying Township.
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
A property created or recorded as a condominium pursuant
to the "Condominium Act," N.J.S.A. 46:8B-1 et seq.
The provision of a new dwelling, multiple dwelling or commercial
or industrial structure, or the enlargement of the volume of an existing
multiple dwelling or commercial or industrial structure by more than
30%, but shall not mean the conversion of an existing building or
structure to another use.
The alteration or renovation of a nonresidential building
or structure, or hotel, motel, motor hotel or guesthouse, in such
manner as to convert the building or structure from its previous use
to use as a dwelling or multiple dwelling.
A housing corporation or association, wherein the holder
of a share or membership interest thereof is entitled to possess and
occupy for dwelling purposes a house, apartment, or other unit of
housing owned by the corporation or association or to purchase a unit
of housing owned by the corporation or association.
When used with respect to abatements for dwellings or multiple
dwellings, only the cost or fair market value of direct labor and
materials used in improving a multiple dwelling, or of converting
another building or structure to a multiple dwelling, or of constructing
a dwelling, or of converting another building or structure to a dwelling,
including any architectural, engineering, and contractor's fees
associated therewith, as the owner of the property shall cause to
be certified to the Township Council by an independent and qualified
architect, following the completion of the project.
A building or part of a building used, to be used or held
for use as a home or residence, including accessory buildings located
on the same premises, together with the land upon which such building
or buildings are erected and which may be necessary for a fair enjoyment
thereof, but shall not mean any building or part of a building, defined
as a multiple dwelling pursuant to the "Hotel and Multiple Dwelling
Law," N.J.S.A. 55:13A-1 et seq. A dwelling shall include, as they
are separately conveyed to individual owners, individual residences
within a cooperative, if purchased separately by the occupants thereof,
and individual residences within a horizontal property regime or a
condominium, but shall not include general common elements or common
elements of such horizontal property regime or condominium as defined
pursuant to the "Horizontal Property Act," N.J.S.A. 46:8A-1 et seq.,
or the "Condominium Act," N.J.S.A. 46:8B-1 et seq., or of a cooperative,
if the residential units are owned separately.
That portion of the Assessor's full and true value of
any improvement, conversion, alteration, or construction not regarded
as increasing the taxable value of a property pursuant to this Act.[1]
A modernization, rehabilitation, renovation, alteration or
repair which produces a physical change in an existing building or
structure that improves the safety, sanitation, decency or attractiveness
of the building or structure as a place for human habitation or work
and which does not change its permitted use. In the case of a multiple
dwelling, it includes only improvements which affect common areas
or elements, or three or more dwelling units within the multiple dwelling.
In the case of a multiple dwelling or commercial or industrial structure,
it shall not include ordinary painting, repairs and replacement of
maintenance items, or an enlargement of the volume of an existing
structure by more than 30%. In no case shall it include the repair
of fire or other damage to property for which payment of a claim was
received by any person from an insurance company at any time during
the three-year period immediately preceding the filing of an application
pursuant to this Act.
A building or structure meeting the definition of "multiple
dwelling" set forth in the "Hotel and Multiple Dwelling Law," N.J.S.A.
55:13A-1 et seq., and means, for the purpose of improvement or construction,
the general common elements and common elements of a condominium,
a cooperative, or a horizontal property regime.
[1]
Editor's Note: "This Act" refers to N.J.S.A. 40A:21-1 et seq.
As used in this article, the following terms shall have the
meanings indicated:
The officer of a taxing district designated with the duty
of assessing real property for the purpose of general taxation in
the Township of Willingboro.
The elected officials designated as the Township Council
of the Township of Willingboro.
Prospective applicants who own newly constructed or rehabilitated
commercial or industrial structures that are located in the Township
of Willingboro are entitled to apply for a five-year tax exemption
and/or tax abatement as provided in this article.
Any application submitted for tax exemption and abatement shall
not be accepted unless it is submitted with full payment of the required
(nonrefundable) application fee. The fees are as follows:
Prospective applicants for tax exemption and abatement shall
submit an application, approved by the Director of the Division of
Taxation in the Department of Treasury and currently on file with
the Township, to the Tax Assessor, specifying the following:
A.Â
A general description of a project for which exemption and abatement
is sought;
B.Â
A legal description of all real estate necessary for the project;
C.Â
Plans, drawings and other documents as may be required by Township
Council to demonstrate the structure and design of the project;
D.Â
A description of the number, classes and type of employees to be
employed at the project site within two years of completion of the
project (if applicable);
E.Â
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;
F.Â
Estimates of the cost of completing such project;
G.Â
A statement showing the real property taxes currently being assessed
at the project site; estimated tax payments that would be made annually
by the applicant on the project during the period of the agreement;
and estimated tax payments that would be made by the applicant on
the project during the first full year following the termination of
the tax agreement;
H.Â
If the project is a commercial or industrial structure, a description
of any lease agreement between the applicant and proposed users of
the project, and a history and description of the applicant's
businesses;
I.Â
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 unit respecting low- or moderate-income housing;
J.Â
A completed copy of the Township Tax Abatement Application Form E/A-1;
K.Â
Such other pertinent information as the Township of Willingboro may
require.
No exemption or abatement shall be granted except upon written
application to the Tax Assessor. Depending upon the project, the tax
exemption shall be approved by resolution of the Township Council
authorizing a tax agreement for the tax exemption for a particular
property for a period of up to five years.
A.Â
Township Council shall require a tax agreement for the exemption
and abatement of taxes for each project that involves the construction
of commercial and industrial structures and multiple dwellings. The
tax agreement shall be in a form prepared by the applicant and shall
contain the representations that are required by this article, together
with such other information required by the Township Solicitor. The
form of the agreement shall be approved by the Township Solicitor
and shall be on file in the office of the Township Clerk. The tax
agreement shall provide for the applicant to pay to the municipality
in lieu of full property tax payments an amount annually to be computed
by the formulas as set forth in N.J.S.A. 40A:21-10.
B.Â
The tax agreement shall provide for the applicant to pay to the Township
in lieu of full property tax payments an amount annually to be computed
by one of the following formulas:
(1)Â
Cost basis. The applicant shall pay to the Township in lieu of full
property tax payments an amount equal to 2% of the cost of the project.
For the purposes of the agreement, "the cost of the project" means
only the cost or fair market value of direct labor and all materials
used in the construction, expansion, or rehabilitation of all buildings,
structures, and facilities at the project site, including the costs,
if any, of land acquisition and land preparation, provision of access
roads, utilities, drainage facilities, and parking facilities, together
with architectural, engineering, legal, surveying, testing, and contractors'
fees associated with the project, which the applicant shall cause
to be certified and verified to the Township by an independent and
qualified architect, following the completion of the project.
(2)Â
Gross revenue basis. The applicant shall pay to the Township in lieu
of full property tax payments an amount annually equal to 15% of the
annual gross revenues from the project. For the purposes of the agreement,
"annual gross revenues" means the total annual gross rental and other
income payable to the owner of the project from the project. If in
any leasing, any real estate taxes or assessments on property included
in the project, any premiums for fire or other insurance on or concerning
property included in the project, or any operating or maintenance
expenses ordinarily paid by the landlord are to be paid by the tenant,
then those payments shall be computed and deemed to be part of the
rent and shall be included in the annual gross revenue. The tax agreement
shall establish the method of computing the revenues and may establish
a method of arbitration by which either the landlord or tenant may
dispute the amount of payments so included in the annual gross revenue.
(3)Â
Tax phase-in basis. The applicant shall pay to the Township in lieu
of full property tax payments an amount equal to a percentage of taxes
otherwise due, according to the following schedule:
(a)Â
In the first full year after completion, no payment in lieu
of taxes otherwise due;
(b)Â
In the second full year after completion, an amount not less
than 20% of taxes otherwise due;
(c)Â
In the third full year after completion, an amount not less
than 40% of taxes otherwise due;
(d)Â
In the fourth full year after completion, an amount not less
than 60% of taxes otherwise due;
(e)Â
In the fifth full year after completion, an amount not less
than 80% of taxes otherwise due.
If, during the term of the tax exemption and/or abatement, the
property owner disposes of the property, the tax which would otherwise
have been payable for each tax year shall become due and payable,
unless the Township Council determines by resolution that the subsequent
owner will continue to use the property pursuant to the conditions
which qualified the property.
