[HISTORY: Adopted by the Board of Commissioners of the City
of Ventnor City as indicated in article histories. Amendments noted
where applicable.]
[Adopted 12-18-2014 by Ord. No. 2014-33]
As used in this article, the following terms shall have the
meanings indicated:
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 for taxation pursuant to this
article.
A duration of time comprising 365 days, or 366 days when
the included month of February has 29 days, that commences on the
date that an exemption or abatement for a project becomes effective
pursuant to N.J.S.A. 40A:21-16.
The entirety of the City of Ventnor which has been determined
to be an area in need of rehabilitation or redevelopment pursuant
to the Local Redevelopment and Housing Law (P.L. 1992, c. 79) (N.J.S.A.
40A:12A-1 et seq.) by way of Resolution No. 107 of 2014.
The Assessor of the City of Ventnor who is charged with the
duty of assessing real property for the purpose of general taxation.
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 governing body determines will tend to maintain or provide
gainful employment within the municipality, assist in the economic
development of the municipality, maintain or increase the tax base
of the municipality and maintain or diversify and expand commerce
within the municipality. It shall not include any structure or part
thereof used or to be used by any business relocated from another
qualifying municipality unless: the total square footage of the floor
area of the structure or part thereof used or to be used by the business
at the new site together with the total square footage of the land
used or to be used by the business at the new site exceeds the total
square footage of that utilized by the business at its current site
of operations by at least 10%; and the property that the business
is relocating to has been the subject of a remedial action plan costing
in excess of $250,000 performed pursuant to an administrative consent
order entered into pursuant to the authority vested in the Commissioner
of Environmental Protection under N.J.S.A. 13:1D-1 et seq., the Water
Pollution Control Act, N.J.S.A. 58:10A-1 et seq., the Solid Waste
Management Act, N.J.S.A. 13:1E-1 et seq., and the Spill Compensation
and Control Act, N.J.S.A.58:10-23.11 et seq.
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, P.L. 1969, c. 257 (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
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 governing body 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 the 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, P.L. 1967, c. 76 (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 of
such horizontal property regime or condominium as defined pursuant
to the Horizontal Property Act, P.L. 1963, c. 168 (N.J.S.A. 46:8A-1
et seq.) or the Condominium Act, P.L. 1969, c. 257 (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 article.
A property submitted to a horizontal property regime pursuant
to the Horizontal Property Act, P.L. 1963, c. 168 (N.J.S.A. 46:8A-1
et seq.).
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 a 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 article.
A building or a structure meeting the definition of "multiple
dwelling" set forth in the Hotel and Multiple Dwelling Law, P.L. 1967,
c. 76 (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.
The construction, improvement or conversion of a structure
in an area in need of rehabilitation that would qualify for an exemption,
or an exemption and abatement pursuant to N.J.S.A. 40A:21-1 et seq.
The Commission hereby determines to utilize the authority granted
under Article VIII, Section 1, Paragraph 6 of the New Jersey Constitution
to establish the eligibility of residential dwellings, multiple dwellings,
condominiums and cooperatives and the eligibility of commercial and
industrial structures for exemptions and abatements permitted by P.L.
1991, c. 441 (see N.J.S.A. 40A:21-1 et seq.), throughout areas designated,
or to be designated, as in need of rehabilitation.
This article authorizes the City of Ventnor to grant exemptions
and abatements to commence and take effect in the 2015 tax year and
thereafter.
A.
There may be an exemption for a portion of the assessed valuation of construction of new dwellings and of conversions of other buildings and structures, including unutilized public buildings, to dwelling use. In determining the value of the real property, the City shall consider 30% of the Assessor's full value of the dwelling constructed, or conversion alterations made, as not increasing the value of the property for a total of five years, notwithstanding that the value of the property upon which the construction or conversion occurs is increased thereby. An application for exemption pursuant to this section shall be made to the governing body in the form set forth in § 204-7 of this article.
B.
An exemption pursuant to this section shall be approved by the Assessor upon the filing of an application pursuant to § 204-14 of this article and thereafter shall be approved by City Commission. The above exemption shall not qualify for the payment in lieu of taxes pursuant to § 204-8 and shall be calculated as permitted by N.J.S.A. 40A:21-5c and shall allow a thirty-percent exemption of the new construction for a total of five years.
A.
There shall be an exemption from taxation of improvements to commercial
and industrial structures. In determining the value of the real property,
the City shall regard 100% of the Assessor's full and true value of
the improvements or conversion alterations as not increasing the value
of the property for a total of five years, notwithstanding that the
value of the property upon which the construction or conversion occurs
is increased thereby. During the exemption period, the assessment
on the property shall not be less than the assessment thereon existing
immediately prior to the improvements, unless there is damage to the
structure through action of the elements sufficient to warrant a reduction.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
The governing body of the City of Ventnor is hereby authorized to enter into tax agreements for an exemption from taxation of new construction of commercial structures, industrial structures and multiple dwellings in accordance with the procedures set forth in §§ 204-7 through 204-13 of this article. In determining the value of the real property, the City shall consider 100% of the Assessor's full value of the construction as not increasing the value of the property for a total of five years, notwithstanding that the value of the property upon which the construction occurs is increased thereby. Exemptions pursuant to this section shall be subject to the payment provisions contained in § 204-8.
Applicants for tax exemption for a new construction of new residential dwellings, commercial structures, industrial structures and multiple dwellings pursuant to § 204-6 of this article shall provide the governing body of the City of Ventnor with an application pursuant to § 204-10 setting forth the following information:
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 description of the number, classes and type of employees to be
employed at the project site within two years of completion of the
project.
E.
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.
Estimates of the cost of completing such project.
G.
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.
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 user's businesses.
I.
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
dwellings' units respecting low- or moderate-income housing.
J.
Such other pertinent information as the governing body may require
on a case-to-case basis.
[Added 3-19-2015 by Ord.
No. 2015-06]
A.
Following receipt of the application, the Tax Assessor shall review
each application for completeness and prepare a tax estimate worksheet.
A copy of the application and tax estimate worksheet shall be provided
to the City's Business Administrator, Clerk, and Chief Financial Officer
and the City Solicitor.
B.
Within 60 days of receiving the filed application, the City Business
Administrator shall forward a copy of the completed application and
tax estimate worksheet to the governing body.
The governing body of the City of Ventnor may enter into a written
agreement with an applicant for the exemption of local property taxes.
The agreement shall provide for the applicant to pay the municipality
in lieu of full property taxes, for all classes of property qualifying
herein, an amount equal to a percentage of taxes otherwise due according
to the following formula authorized by N.J.S.A. 40A:21-10:
A.
Tax phase-in basis. The agreement may provide for the applicant to
pay to the municipality in lieu of full property tax payments an amount
equal to a percentage of taxes otherwise due, according to the following
schedule:
(1)
In the first full tax year after completion, no payment in lieu of
taxes otherwise due.
(2)
In the second tax year, an amount not less than 20% of taxes otherwise
due.
(3)
In the third tax year, an amount not less than 40% of taxes otherwise
due.
(4)
In the fourth tax year, an amount not less than 60% of taxes otherwise
due.
(5)
In the fifth tax year, an amount not less than 80% of taxes otherwise
due.
A.
The Assessor shall determine on October 1 of the year following the date of the completion of an improvement, conversion or construction the true taxable value thereof. Except for projects subject to a tax agreement pursuant to § 204-8 of this article, the amount of the tax to be paid for the first full tax year following completion shall be based on the assessed valuation of the newly constructed property, minus the amount of the exemption, if any, allowed pursuant to this article, plus any portion of the property, i.e., land value not qualifying for the exemption.
B.
All tax agreements entered into pursuant to this article shall be
in effect for no more than the five full tax years next following
the date of completion of the project.
C.
As a condition to granting an exemption, a property owner shall be
required to waive the filing of any tax appeal for the subject property
for the life of the exemption/abatement.
The Clerk of the City of Ventnor, pursuant to N.J.S.A. 40A:21-11,
shall forward a copy of all tax agreements entered into pursuant to
this article to the Director of the Division of Local Government Services
in the Department of Community Affairs within 30 days of the date
of execution.
If, during any tax year prior to the termination of the tax
agreement, the property owner ceases to operate, or disposes of the
property, or fails to meet the conditions for qualifying for the abatement,
the local property taxes due for all prior years, subject to abatement
and for the current year, shall be payable as if no exemption has
been granted. The Tax Collector of the City of Ventnor shall notify
the property owner within 30 days of the date of disqualification
of the amount of taxes due. In the event that the subject property
has been transferred to a new owner, and it is determined that the
new owner will continue to use the property pursuant to the qualifying
conditions, no tax shall be due, the exemption shall continue and
the agreement shall remain in effect.
The City of Ventnor hereby determines that an additional improvement,
conversion or construction completed on a property already granted
a previous exemption or abatement pursuant to this article during
the period in which the previous exemption or abatement is in effect
shall qualify for an additional exemption or abatement. The additional
improvement, conversion or construction shall be considered as separate
for purposes of calculating the exemption and abatement, except that
the assessed value of any previous improvement, conversion or construction
shall be added to the assessed valuation as it was prior to that improvement,
conversion or construction for the purpose of determining the assessed
value of the property for which any additional abatement is to be
subtracted.
No exemption or abatement shall be granted or tax agreement
entered into pursuant to this article for any property for which property
taxes and/or other municipal charges are delinquent or remain unpaid,
or for which penalties for nonpayment of taxes are due. As a condition
to granting an exemption or abatement, a property owner shall be required
to waive the filing of any tax appeal for the subject property for
the life of the exemption/abatement.
Every application submitted pursuant to this article shall be
on a form prescribed by the Director of the Division of Taxation and
shall be filed with the Tax Assessor of the City of Ventnor, as a
condition to approval, within 30 days, including Saturdays and Sundays,
following the completion of the improvements, conversion or construction.
At the termination of an agreement for tax abatement or exemption
authorized pursuant to this article, the project shall be subject
to all applicable real property taxes, as provided by state laws and
regulations and local ordinances, provided that nothing herein shall
be deemed to prohibit the project or improvement at the termination
of the agreement for tax exemption or abatement from qualifying for
and receiving the full benefits of any other tax preference provided
by law.
This article shall take effect on final passage, approval and
publication.
