All previous ordinances adopted by the Township of Winslow related
to abatements and exemptions for properties located in areas in need
of rehabilitation are suspended by this article.
This article authorizes the Township of Winslow to grant exemptions
and abatements to commence and take effect in the 2019 tax year and
thereafter.
The Township hereby authorizes the utilization of tax exemption
and tax abatement in accordance with Article VIII, Section 1, Paragraph
6, of the New Jersey Constitution and establishes the eligibility
of dwellings, multiple dwellings, mixed-use structures, and commercial
and industrial structures for five-year tax exemptions and abatements
as authorized by N.J.S.A. 40A:21-1 et seq., throughout the entire
municipality, only to the extent set forth herein.
The Township of Winslow may enter into agreements with applicants
for tax abatement on mix-use, commercial and industrial projects,
dwellings and multiple dwellings which satisfy the chapter requirements
hereinafter set forth. The agreement shall provide for an abatement
from real property taxation on these projects for a period of not
more than five years. During such five-year period, the agreement
shall provide for payments to the Township of Winslow in lieu of full
property taxes, which payment shall be calculated as set forth hereinafter
in this chapter. Applications for abatement from taxation may be filed
to take effect for the first full year commencing after the tax year
in which the authorizing ordinance is adopted, and upon completion
of the project for tax years thereafter as set forth in P.L. 1991,
c. 441 (N.J.S.A. 40A:21-1 et seq.), but no application for tax abatement
shall be filed for an abatement to take initial effect for the 11th
full tax year or any tax year occurring thereafter unless this chapter
is readopted by the governing body of the Township of Winslow.
As used in this chapter for mixed-use, commercial and industrial
projects, the following definitions shall apply:
The officer of the Township of Winslow charged with the duty
of assessing real property for the purpose of general taxation.
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
The development of a commercial or industrial structure or
the enlargement of the volume of an existing commercial or industrial
structure by more than 30%.
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; a minimum of $75,000
in overall valuation of the property, as determined by the Tax Assessor,
not costs, in rehabilitation, renovation, alteration or repair to
an existing building or structure. It shall not include ordinary painting,
repairs and replacement of maintenance items. 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 structure or part thereof used for the manufacturing, processing
or assembling of material or manufactured products, or for any combination
thereof, or a mixed-use residential/commercial use, which the governing
body determines will tend to maintain or provide gainful employment
with 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 authority vested in the Commissioner of Environmental Protection.
Commercial or industrial construction projects involving
multiple structures that are built separately.
Improvements to multiple dwellings are eligible for tax exemption
for a period of five years commencing with the completion of an improvement
only if in an area determined to be in need of redevelopment pursuant
to N.J.S.A. 40A:12A-6. The Assessor's full value of the improvements
shall be regarded as not increasing the value of the property for
a period of five years commencing with the completion of an improvement,
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 existing thereon
immediately prior to the improvement unless there is damage to the
multiple dwellings through action of elements or force majeure sufficient
to warrant a reduction. As used in this section, "improvements" shall
not be construed to include an increase in the number of dwelling
units nor the reduction of the total number of dwelling units to less
than three. Any such exemption or abatement shall be subject to the
owner and Township entering into a tax agreement as provided by N.J.S.A.
40A:21-10.
Improvements to mixed-use, commercial and industrial structures
are eligible for tax exemption for a period of five years commencing
with the completion of all improvements. The Assessor's full and true
value of the improvements shall be regarded as not increasing the
value of the property, 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 existing thereon immediately prior to the improvements
unless there is damage to the structure through action of the elements
or force majeure sufficient to warrant a reduction.
Construction of new dwellings and multiple dwellings shall be
eligible for tax exemption or abatement, or both, commencing with
the completion of each individual dwelling unit only if in an area
determined to be in need of redevelopment pursuant to N.J.S.A. 40A:12A-6.
A.
The applicant shall furnish to the municipality all the information
required by N.J.S.A. 40A:21-9. In addition, every applicant shall
file the application form prescribed by the Director of the New Jersey
Division of Taxation in the Department of the Treasury with the Tax
Assessor, as condition to approval, within 30 days, including Saturdays
and Sundays and legal holidays, following the completion of the improvement.
Every application for exemption or abatement, or both, so filed shall
be approved and allowed by the Assessor to the degree that the application
is consistent with the provisions of this article, provided that the
improvements for which the application is made qualify as such pursuant
to the provisions of this article and the tax agreement. The granting
of an exemption or abatement, or both, 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.
B.
No tax exemption or abatement shall be granted unless approved by
ordinance of the Township Committee on an individual basis after review,
evaluation and approval of each application for compliance with the
terms of this article and the underlying statute, rules and regulations.
C.
The tax agreement shall provide for the applicant to pay to the Township
in lieu of full property tax payments to an amount annually to be
computed on a "tax phase-in" basis.
Construction of new mixed-use, commercial and industrial structures
shall be eligible for tax exemption or abatement, or both, commencing
with the completion of the project. Any such exemption or abatement
shall be subject to the owner and Township entering into a tax agreement
as provided by N.J.S.A. 40A:21-10.
A.
The applicant shall furnish to the municipality all the information
required by N.J.S.A. 40A:21-9. In addition, every applicant shall
file the application form prescribed by the Director of the New Jersey
Division of Taxation in the Department of the Treasury with the Tax
Assessor, as condition to approval, within 30 days, including Saturdays
and Sundays and legal holidays, following the completion of the improvement.
Every application for exemption or abatement, or both, so filed shall
be approved and allowed by the Assessor to the degree that the application
is consistent with the provisions of this article, provided that the
improvements for which the application is made qualify as such pursuant
to the provisions of this article and the tax agreement. The granting
of an exemption or abatement, or both, and tax agreement, if appropriate,
shall be recorded and made a permanent part of the official tax record
of the taxing district, which record shall contain a notice of the
termination date hereof.
B.
No tax exemption or abatement shall be granted unless approved by
ordinance of the Township Committee on an individual basis after review,
evaluation and approval of each application for compliance with the
terms of this article and the underlying statute, rules and regulations.
C.
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
on a "tax phase-in" basis.
To be considered for tax abatement, a new commercial or industrial
structure must contain a minimum of 5,000 square feet of floor space
for use. An enlargement of an existing commercial or industrial structure
must be more than 30% of the existing volume of the structure as defined
in N.J.S.A. 40A:21-3g.
A.
A preliminary application is required to be filed with the Township
Tax Assessor, with two copies to the Township governing body, prior
to the issuance of a construction permit for the project. No construction
permit shall be issued to an applicant seeking tax abatement until
such time as the preliminary application has been filed in accordance
with the Township ordinance requirements. If a preliminary application
is not filed, said property will not be eligible for tax abatement.
B.
In the event a construction permit is not issued within one year
from the date the preliminary application is filed, the preliminary
application shall be deemed null and void.
C.
Upon the filing of a preliminary application, the Township Tax Assessor
will review said application to determine if it meets the requirements
of the Township ordinance for abatement and a tax abatement agreement.
The Tax Assessor shall provide this determination to the Township
governing body within 60 days of receipt of a properly completed preliminary
application. In the event the Tax Assessor determines that the application
meets the chapter requirements, then the Township Committee shall
adopt an ordinance authorizing a tax abatement agreement with the
applicant.
D.
The applicant shall file a final application for tax abatement with
the Tax Assessor in the form prescribed, within 30 days, including
Saturdays and Sundays, following completion of construction. A copy
of the final application shall also be filed with the governing body
of the Township.
E.
The completed construction shall be in accordance with the original
Township approvals on which the tax abatement agreement was initially
authorized based on the preliminary application.
F.
The applicant shall have continued to meet the requirements of the
Township chapter for tax abatement.
G.
Every properly completed final application for abatement shall be
evaluated for approval by the Township Tax Assessor within 30 days
of filing. The Tax Assessor shall notify the governing body in writing
of the approval determination. Upon receipt of the written approval
from the Township Tax Assessor, the appropriate Township officials
shall then proceed to execute the tax abatement agreement previously
authorized by the specific ordinance adopted as part of the preliminary
application approval process. The applicant shall be required to sign
this tax abatement agreement prior to the Township signatories.
H.
Separate applications must be filed for each building involved in
phased projects.
I.
In the event the use listed on the preliminary application is changed subsequent to the issuance of the construction permit for the project, the Township Committee shall adopt an ordinance authorizing a tax abatement with the applicant provided that the use is a type listed in § 66-14; as a qualifying project, that the applicant has submitted a revised preliminary application listing the new use; and that the Township Tax Assessor determines that the revised preliminary application meets the requirements of this chapter.
J.
The granting of an abatement and tax agreement, if appropriate, shall
be recorded and made a permanent part of the official tax record of
the taxing district, which record shall contain a notice of the termination
date thereof.
K.
No tax exemption or abatement shall be granted unless approved by
ordinance of the Township Committee on an individual basis after review,
evaluation and approval of each application for compliance with the
terms of this article and the underlying statute, rules and regulations.
The preliminary application must be on a form prescribed by
the Township Tax Assessor and shall provide the following information:
A.
A general description of the project for which abatement is sought.
B.
A legal description of all real estate necessary for the project.
C.
Plans and drawings, including a site layout on the total lot area,
and other documents as may be required by the Tax Assessor and governing
body to demonstrate the structure and design of the project.
D.
A description of the number, classes, types of employees and average
estimated wages and salaries, by employee class, to be employed at
the project site within two years of the completion of the project.
E.
A statement of the reasons for seeking tax abatement on the project
and a description of the benefits to be realized by the applicant
if tax abatement is granted.
F.
Estimates of the cost of completing such project.
G.
Copies of any lease agreements between the applicant and proposed
users of the project and a history and description of the user's business.
H.
Proof of payment of taxes through the current quarter.
I.
Other pertinent data regarding the relationship, agreements and status
of other properties owned by the applicant within the Township of
Winslow.
J.
A statement containing data regarding the relationship, agreements
and status of other properties owned by the applicant in any other
municipality in New Jersey.
K.
Other such pertinent information as the Tax Assessor or governing
body may require.
(1)
The applicant shall file a final application for tax abatement with
the Tax Assessor in the form prescribed, within 30 days, including
Saturdays and Sundays, following completion of construction. A copy
of the final application shall also be filed with the governing body
of the Township.
(2)
The completed construction shall be in accordance with the original
Township approvals on which the tax abatement agreement was initially
authorized based on the preliminary application.
(3)
The applicant shall have continued to meet the requirements of the
Township ordinance for tax abatement.
A.
Every properly completed final application for abatement shall be
evaluated for approval by the Township Tax Assessor within 30 days
of filing. The Tax Assessor shall notify the Township governing body
in writing of the approval determination. Upon receipt of the written
approval from the Township Tax Assessor, the appropriate Township
officials shall then proceed to execute the tax abatement agreement
previously authorized by the specific ordinance adopted as part of
the preliminary application approval process. The applicant shall
be required to sign this tax abatement agreement prior to the Township
signatories.
B.
Separate applications must be filed for each building involved in
phased projects.
C.
In the event the use listed on the preliminary application is changed subsequent to the issuance of the construction permit for the project, the Township governing body shall adopt an ordinance authorizing a tax abatement with the applicant provided that the use is of a type listed in § 66-14 as a qualifying project, that the applicant has submitted a revised preliminary application listing the new use, and that the Township Tax Assessor determines that the revised preliminary application meets the requirements of this chapter.
The following type projects/uses will be considered for tax
abatement by the Township of Winslow:
A.
Light industrial, light manufacturing, and indoor warehousing facilities
which are nonpolluting and non-noxious.
B.
Scientific or industrial research engineering laboratory, testing
or experimental laboratory or similar establishment for research or
product development.
C.
Administrative offices.
D.
Wholesale distributorships.
E.
Experimental, research testing, dental or medical laboratories.
F.
Carpet or rug cleaning; laundry and dry cleaning.
G.
Job printing and newspaper or book publishing.
H.
Baking and food and dairy processing.
I.
Corporate and professional offices.
J.
General service and repair shops, including carpenter, cabinetmaking,
furniture repair, plumbing or similar shop.
K.
Office of a builder, carpenter, caterer, cleaner, contractor, decorator,
electrician, furrier, mason, painter, plumber, roofer, upholsterer,
and similar non-nuisance businesses, excluding open storage of materials
and excluding open storage of motor vehicles.
L.
Veterinary hospital, provided that all animals are kept in a permanent
enclosed structure and are not within 150 feet of any existing residential
use or zone.
M.
Businesses and instructional schools, including trade schools.
N.
Nursing homes, homes for the aged and assisted living facilities.
O.
General commercial establishments permitted by zoning.
P.
Accessory uses on the same lot with and customarily incidental to
any of the above permitted uses.
Q.
Charter schools.
R.
New residential construction only if in an area determined to be
in need of redevelopment pursuant to N.J.S.A. 40A:12A-6.
A.
All tax abatement agreements must be authorized by a separate ordinance
for each application.
B.
A tax abatement 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 the following formula:
Tax phase-in basis — The applicant must 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:
(1)
In the first full tax year from date of completion, no payment in
lieu of taxes unless otherwise due.
(2)
In the second tax year from date of completion, an amount not less
than 20% of taxes otherwise due.
(3)
In the third tax year from date of completion, an amount not less
than 40% of taxes otherwise due.
(4)
In the fourth tax year from date of completion, an amount not less
than 60% of taxes otherwise due.
(5)
In the fifth tax year from date of completion, an amount not less
than 80% of taxes otherwise due.
C.
All tax agreements entered into by virtue of this chapter shall be
in effect for no more than five full tax years from the date of completion
of the project. Within 30 days of the execution of a tax abatement
agreement, the Township shall forward a copy of said agreement to
the Director of the Division of Local Government Services in the Department
of Community Affairs.
D.
No exemption or abatement shall be granted, or tax agreement entered
into, with respect to any property for which property taxes are delinquent
or remain unpaid or for which penalties for nonpayment of taxes are
due.
E.
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, then the tax which
would have otherwise been payable for each tax year shall become due
and payable from the property owner as if no abatement had been granted.
The Township governing body shall notify the property owner and the
Tax Collector of the disqualification; and, upon such notice, the
Tax Collector shall, within 15 days thereof, notify the owner of the
property of the taxes due and payable to the Township. With respect
to the disposal or transfer of property, the grantee (new owner) of
any nonresidential project shall file an application and statement
with the Tax Assessor, stating that the new owner of the property
will continue to use the property pursuant to the conditions which
qualified the property for tax abatement, no tax shall be due, the
abatement shall continue, and the agreement shall remain in effect.
F.
At termination of the tax abatement agreement, the property shall
be subject to all applicable real property taxes as provided by law;
but nothing herein shall prohibit a project, at the termination of
an agreement, from qualifying for and receiving the full benefits
of any other tax preferences provided by law.
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
improvements or construction shall be considered as separate for the
purposes of calculating exemptions and abatements, except that the
assessed value of any previous improvement or construction shall be
added to the assessed valuation of the property from which any additional
abatement is to be subtracted.
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.
All tax abatement and exemption agreements shall provide that
the applicant is subject to all federal, state and local laws and
regulations.
The percentage which the payment in lieu of taxes bears to the
property taxes which would have been paid had an abatement not been
granted for the property under the agreement shall be applied to the
valuation of the property to determine the reduced valuation of the
property to be included in the valuation of the municipality for determining
equalization for county appointment and school aid during the term
of the tax abatement agreement covering the property.
An application filing fee of $500 shall be paid by the applicant
at the time of filing the preliminary application. The application
fee will provide for the administrative services to be undertaken
by the Township Tax Assessor, and any other Township official, in
order to render a determination on the applicant's eligibility for
a tax abatement. The filing fee shall cover the cost for both the
preliminary application and final application review and determination
process.
A.
Every tax abatement agreement required by this chapter shall be subject to payment of a nonrefundable escrow in the amount of $1,000, to be paid by the applicant at the time the applicant submits a preliminary application to the Tax Assessor in accordance with § 66-12 of this chapter. The required escrow shall be used to pay the cost of professional review by the Township Solicitor, Engineer, and other professionals employed by the Township to review and make recommendations regarding the tax abatement agreement.
B.
At the time of submission of an application to the Township Tax Assessor,
the applicant shall be required to execute an escrow agreement with
the Township to cover all necessary and reasonable costs incurred
for the technical and professional review of the tax abatement agreement.
The amounts specified for escrow are estimates which shall be paid
prior to the Township's review of the tax abatement application. In
the event an additional amount is required for more than the amount
specified in the escrow agreement, the applicant shall pay all additional
sums required prior to the Township's execution of the tax abatement
agreement.
C.
To the extent not otherwise inconsistent with this section, the escrow fee required by this chapter shall be administered by the Chief Financial Officer of the Township in the manner and as set forth generally in § 40-43D of the Code of the Township of Winslow.
D.
The Township Clerk or his/her designee shall maintain an itemized
account of the escrow on deposit for each application and shall, upon
the request of the applicant, supply a copy of said account.
