[HISTORY: Adopted by the Mayor and Council of the Borough of Fanwood as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Land use — See Ch. 184.
[Adopted 2-2-2015 by Ord. No. 15-01R]
This article shall be known as the "Borough of Fanwood Tax Abatement and Tax Exemption Ordinance."
N.J.S.A. 40A:21-1 et seq. enables municipalities to allow areas in need of rehabilitation to obtain short-term exemptions and abatements of local property taxes to encourage the redevelopment and maintenance of properties within the area in need of rehabilitation. The governing body of the Borough of Fanwood has determined that the greater interest of the Borough is served by encouraging renovation and rehabilitation of existing commercial and industrial structures and by encouraging construction of new commercial and industrial structures within the area in need of rehabilitation defined herein.
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.
[Amended 2-7-2017 by Ord. No. 17-01R]
All commercial and industrial structures located within the following defined area in need of rehabilitation shall be eligible for tax abatement under this article:
Tax Block 55, Lots 1, 2, 4, 5.01, 7.01, 8, 9.01, 10, 11, 11.01, 12, 13, 14, 15, 15.01, 16, 17, 18, 19
Block 56, Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
Block No. 57, Lot 1
Block 60, Lots 1, 2, 3, 4
Block 61, Lots 2.01, 2.02, 3, 4
Block 62, Lot 2
Block 65, Lots 1, 2, 3, 11, 12, 14
Block 66, Lots 1, 2, 3, 6, 9, 10, 11, 14
Block 69, Lots 1, 5, 6
Block 91, Lots 1.01, 3.01, 6, 26
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 for five-year tax exemptions and abatements of improved and newly constructed commercial and industrial structures in the rehabilitation area as authorized by N.J.S.A. 40A:21-1 et seq. 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. All tax agreements shall be applied for and granted on a project basis in accordance with the provisions of N.J.S.A. 40A:21-1 et seq. and the provisions of this article.
A. 
All applicants for tax abatement shall file a written application with the Tax Assessor containing all of the following:
(1) 
A general description of the project for which abatement is sought;
(2) 
A legal description of all real estate necessary for the project;
(3) 
Plans, drawings and other documents as may be required by the Borough Council to demonstrate the structure and design of the project;
(4) 
A description of the number, classes and types of employees to be employed at the project site within two years of completion of the project;
(5) 
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;
(6) 
Estimates of the cost of completing such project;
(7) 
A statement showing:
(a) 
The real property taxes currently being assessed at the project site;
(b) 
Estimated tax payments that would be made annually by the applicant on the project during the period of the tax abatement;
(c) 
Estimated tax payments that would be made by the applicant on the project during the first full year following the termination of the tax abatement agreement;
(8) 
A description of any lease agreements between the applicant and proposed users of the project and a history and description of the users' businesses;
(9) 
A completed application form prescribed by the Director of the New Jersey Division of Taxation in the Department of the Treasury; and
(10) 
Such other pertinent information as the governing body may require.
B. 
All applications must be filed with the Tax Assessor within 30 days, including Saturdays and Sundays, following the completion of the improvement.
C. 
Each application shall be approved and allowed by the Tax Assessor to the degree that the application is consistent with the provisions of this article or a tax agreement duly made pursuant to this article and meets the requirements of N.J.S.A. 40A:21-1 et seq.
A. 
No tax agreement shall be granted unless such tax agreement is approved by the Borough Council on an individual basis after review, evaluation and approval of such tax agreement for compliance with the terms of this article and the underlying statute, rules and regulations.
B. 
Upon approval of an application authorizing an agreement for tax abatement for a particular project, the Borough Council shall enter into a written agreement with the applicant for the abatement of local real property taxes. The agreement shall provide for the applicant to pay to the municipality, in lieu of property taxes, payments in an amount annually to be computed by either the cost basis, the gross revenue basis or the tax phase-in basis, as provided for in N.J.S.A. 40A:21-10.
C. 
No tax abatement agreement shall be in effect for a period of more than five years commencing with the first full tax year after completion of the improvement as provided for N.J.S.A. 40A:21-11.
D. 
All tax agreements shall provide that the applicant is subject to all federal, state and local laws and regulations.
E. 
Within 30 days after the execution of any such tax agreement, the Borough Clerk shall forward a copy of the agreement to the Director of the Division of Local Government Services in the Department of Community Affairs.
F. 
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.
In the event of default by the applicant, including but not limited to the failure to make timely tax or in-lieu payments to the Borough, the Tax Assessor 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 Borough 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 tax agreement upon 30 days' notice to the applicant.
Every application for exemption or abatement and every exemption and abatement granted shall be subject to all of the provisions of N.J.S.A. 40A:21-1 et seq., and all rules and regulations issued thereunder.
An additional improvement or construction, completed on a property granted a previous exemption or abatement during the period in which such previous exemption 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 or abatement. In such case, the additional improvement or construction shall be considered as separate for the purposes of calculating exemptions and abatements, except that the assessed valuation 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.
No exemption or abatement shall be granted, or tax agreement entered into with respect to any property for which taxes or any other municipal charges are delinquent or remain unpaid or for which penalties for nonpayment are due, or for any property not being used in conformance with local, state or federal ordinance, regulation or statute.
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, then the tax which would have otherwise been payable for each tax year shall become due and payable by the property owner as if no exemption or abatement had been granted. The Tax Assessor shall promptly notify the property owner and Tax Collector, and, within 15 days thereof, the Tax Collector shall notify the property owner of the amount of taxes due. However, with respect to the sale or other disposal of the property, where it is determined that the new owner of the property will continue to use the property pursuant to the conditions which qualified the property, no tax shall be due, the exemption and the abatement shall continue, and the agreement shall remain in effect.
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.
The Tax Collector shall include the appropriate notice in the mailing of annual property tax bills to each owner of a dwelling located in an area in which exemptions or exemptions and abatements may be allowed pursuant to this article during the first year following adoption of this article.
An annual report, as required by N.J.S.A. 40A:21-21, shall be filed by the Borough with the Director of the Division of Local Government Services in the Department of Community Affairs and the Director of the Division of Taxation in the Department of the Treasury.
The Borough Clerk is hereby authorized and directed to forward a certified copy of this article to the State of New Jersey Department of Community Affairs.
Appeal of any determination made by the Borough under the terms of this article shall be made to the Union County Board of Taxation, unless a direct appeal to the New Jersey Tax Court is authorized by law.