[Adopted 7-20-2011 by Ord. No. 2406-11]
The Mayor and Council hereby authorizes the utilization of tax
exemption in accordance with Article VIII, Section 1, Paragraph 6,
of the New Jersey Constitution and establishes the eligibility of
residential and multiple dwellings and commercial and industrial structures
for five-year tax exemptions to the maximum degree permitted by N.J.S.A.
40A:21-1 et seq. throughout the entire municipality.
A.
Improvements to and rehabilitation of dwellings more than 20 years old are eligible for tax exemption, if approved by the Borough Council, The Borough, in determining value, may regard the first $25,000 in the Assessor's full and true value of improvements for each dwelling unit primarily and directly affected by the improvements as not increasing the value of the property for a period of five years, notwithstanding that the value of the property to which the improvements are made 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 an abatement is granted pursuant to this § 480-14, or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
B.
For any property for which an exemption is granted under the preceding subsection of this § 480-14, the ordinance approving said exemption may also provide for the abatement of some portion of the assessed value of the property (including the land) receiving the exemption as it existed immediately prior to the improvement, An ordinance providing for exemptions for improvements to dwellings may also provide for the abatement of some portion of the assessed value of property receiving the exemption as it existed immediately prior to the improvement. An abatement for a dwelling may be granted with respect to that property for a total of up to five years, but the annual amount of the abatement granted to any single property shall not exceed 30% of the annual amount of the exemption granted under of this § 480-14 and as provided in and subject to the limitations of N.J.S.A. 40A:21-5b.
C.
An ordinance authorizing an exemption and/or abatement pursuant to this § 480-14 need not contain a form of tax agreement, but may instead refer to a form of tax agreement which has been approved by separate ordinance.
D.
If the applicant shall transfer ownership of a dwelling during the term of the applicable tax agreement or if any such transferee shall thereafter again transfer such ownership, the tax agreement, relating thereto shall be deemed to be assigned to and assumed by each such subsequent owner. Accordingly, the abatement and/or exemption shall continue notwithstanding such transfer, and the tax agreement shall remain in effect during the original term thereof. Such continuation shall also apply to any tax agreement relating to a dwelling which has been transferred prior to the effectiveness of the ordinance authorizing this amendment to § 480-14, provided that the Tax Assessor has not previously notified either the transferor or the transferee of the lapse of such abatement and/or exemption.
Construction of new dwellings or the conversion of other buildings
and structures, including unutilized public buildings, to dwelling
use are eligible for tax exemption for a period of five years. If
approved, the Borough, in determining value, shall regard 30% of the
Assessor's full and true value of the dwelling constructed or
conversion alterations made as not increasing the value of the property.
This exemption is to be granted notwithstanding that the value of
the property upon which the construction or conversion occurs is increased
thereby.
A.
Improvements to multiple dwellings or conversions of other buildings
and structures, including unutilized public buildings, to multiple
dwelling use are eligible for tax exemption. If approved, the Borough,
in determining value, shall regard up to the Assessor's full
and true value of the improvements or conversion alterations as not
increasing the value of the property for a period of five years. This
exemption is to be granted notwithstanding that the value of the property
to which the improvements or conversion alterations are made is increased
thereby. During the exemption period, the assessment on the property
shall not be less than the assessment existing thereon immediately
prior to the improvement or conversion alteration, unless there is
damage to the multiple dwelling through action of the elements sufficient
to warrant a reduction.
B.
For any property for which an exemption is granted under the preceding subsection of this § 480-16, the ordinance approving said exemption may also provide for the abatement of some portion of the assessed value of the property (including the land) receiving the exemption as it existed immediately prior to the improvement, An ordinance providing for exemptions for improvements to dwellings may also provide for the abatement of some portion of the assessed value of property receiving the exemption as it existed immediately prior to the improvement. An abatement for a multiple dwelling may be granted with respect to that property for a total of up to five years, but the annual amount of the abatement shall not exceed 30% of the total cost of the improvement or conversion alteration, and the total amount of abatements granted to any single property shall not exceed the total cost of the improvement or conversion alteration. The abatement period and the annual percentage of the abatement to be granted shall be set forth in the ordinance, which may include a schedule providing for a different percentage of abatement, up to 30%, for each year of the abatement period, as provided in and subject to the limitations of N.J.S.A. 40A:21-6b.
C.
An ordinance authorizing an exemption and/or abatement pursuant to this § 480-16 need not contain a form for tax agreement, but may instead refer to a form of tax agreement which has been approved by separate ordinance.
D.
If the applicant shall transfer ownership of a dwelling during the term of the applicable tax agreement or if any such transferee shall thereafter again transfer such ownership, the tax agreement, relating thereto shall be deemed to be assigned to and assumed by each such subsequent owner. Accordingly, the abatement and/or exemption shall continue notwithstanding such transfer, and the tax agreement shall remain in effect during the original term thereof. Such continuation shall also apply to any tax agreement relating to a dwelling which has been transferred prior to the effectiveness of the ordinance authorizing this amendment to § 480-16, provided that the Tax Assessor has not previously notified either the transferor or the transferee of the lapse of such abatement and/or exemption.
Improvements to commercial and industrial structures are eligible
for tax exemption for a period of five years. If approved, the Borough,
in determining value, shall regard the Assessor's full and true
value of the improvements 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 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.
A.
New construction of commercial and industrial structures and multiple
dwellings are eligible for tax exemption. The exemption shall be granted
for a period of five years. The owner shall enter into a written agreement
with the Borough to pay a tax on the improvement in 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; and
(5)
In the fifth tax year, an amount not less than 80% of taxes otherwise
due.
B.
The agreement shall provide that the tax shall be billed and collected
in the same manner as any conventional taxes, and any arrearages shall
accrue that rate of interest charged for delinquent real estate taxes
and shall be subject to foreclosure.
C.
The Borough Clerk shall forward a copy of all executed exemption
agreements to the Director of the Division of Local Government Services
in the Department of Community Affairs within 30 days of the date
of execution.
D.
In the event a property owner subject to a tax agreement ceases to
operate or disposes of the property or fails to meet the condition
for qualifying for the exemption, the local property taxes due for
all of the prior years subject to exemption and for the current year
shall be payable as if no exemption had been granted. Mayor and Council
shall notify the property owner and Tax Collector. The Tax Collector
shall forthwith notify the property owner with 15 days of the date
of disqualification of the amount of taxes due. In the event 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.
A.
Every applicant for five-year tax exemptions and abatements shall file with the Tax Assessor the application form prescribed by the Director of the New Jersey Division of Taxation in the Department of the Treasury (Form E/A-1) as a condition to approval within 30 days including Saturdays and Sundays following the completion of the improvement or construction. Every application for exemption or abatement so filed shall be approved and allowed by the Tax Assessor within 30 days to the degree that the application is consistent with the provisions of this article, provided that the improvement or construction for which the application is made qualifies as such pursuant to the provisions of this article and the tax agreement if applicable. Every application shall be accompanied by a fee as set forth in § 480-19C to be paid as compensation for legal and related administrative review by Borough officials. The granting of an exemption or abatement and tax agreement, if applicable, 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 thereof.
[Amended 10-22-2015 by Ord. No. 2522-15]
B.
Notwithstanding anything herein to the contrary, no tax exemption
or abatement for new construction of commercial or industrial structures,
or multiple dwellings shall be granted unless approved by ordinance
of the Mayor and Council on an individual basis after review, evaluation
and approval of each application.
[Amended 10-22-2015 by Ord. No. 2522-15]
An additional improvement, conversion or construction completed
to a property already granted an exemption during the period in which
the exemption is in effect shall be eligible for an additional exemption,
just as if such property had not received a previous exemption. The
additional improvement, conversion or construction shall be considered
as separate for purposes of calculating the exemption, 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 from which any additional exemption is to be
subtracted.
No exceptions shall be granted for any property for which property
taxes or any other municipal charges are delinquent or remain unpaid,
or for which penalties for nonpayment are due.
The Tax Collector shall include an appropriate notice in the
mailing of the annual property tax bills to each owner of a dwelling
located in an area in which exemptions may be allowed under this article.
A.
The Tax Assessor on behalf of Mayor and Council shall report, on
or before October 1 of each year, to the Director of the Division
of Local Government Services in the Department of Community Affairs
and to the Director of the Division of Taxation in the Department
of the Treasury the total amount of real property taxes exempted within
the Borough in the current tax year for each of the following:
(1)
Improvements of dwellings;
(2)
Construction of dwellings;
(3)
Improvements and conversions of multiple dwellings;
(4)
Improvements of commercial or industrial structures;
(5)
Construction of multiple dwellings under tax agreements; and
(6)
Construction of commercial or industrial structures under tax agreements.
B.
In the case of Subsection A(5) and (6) above, the report shall state instead the total amount of payments made in lieu of taxes according to each formula utilized by the municipality, and the difference between that total amount and the total amount of real property taxes which would have been paid on the project had the tax agreement not been in effect, for the current next year.
