[HISTORY: Adopted by the Township Committee of the Township of Montague 7-23-13 as Ord. No. 2013-06. Readopted in its entirety 12-27-2022 by Ord. No. 2022-21. Amendments noted where applicable.]
N.J.S.A. 40A:21-1 et seq. of the New Jersey Statutes enables municipalities to create abatements from local property taxes assessed against certain industrial and commercial improvements.
The C-1 Neighborhood Commercial District and the C-2 Highway Commercial District of the Township of Montague have been determined to be areas suitable for development of commercial and/or light industrial development that 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.
The Montague Township Economic Development Committee in conjunction with the Mayor and Township Committee have determined that the interests of the Township of Montague are best served by encouraging certain construction and improvements for commercial and light industrial uses in the relevant zones.
The Mayor and Township Committee of the Township of Montague have determined that certain commercial and industrial improvements, in the interest of economic development, should be provided with the opportunity for abatement of local property taxes for a period of five years.
The Montague Township Economic Development Committee endorses the following tax abatement ordinance.
The Township Committee hereby authorizes the utilization of tax abatement in accordance with Article VIII, § 1, paragraph 6 of the New Jersey Constitution and establishes the eligibility of commercial and industrial structures for five-year tax abatements to the maximum degree permitted by N.J.S.A. 40A:21-1 et seq. throughout the C-1 and C-2 Commercial Districts in the township.
A. 
Improvements to existing commercial and industrial structures are eligible for tax abatement for a period of five years.
B. 
Tax abatements may only be approved by resolution of the Township Committee, provided that the application has first been referred to the Montague Township's Economic Development Committee for its recommendation. Upon approval, the township, in determining value, shall regard up to the Assessor's full and true value of the improvements as not increasing the value of the property for a period of five years.
C. 
This abatement is to be granted notwithstanding that the value of the property to which the improvement is made is increased thereby. During the abatement 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 is eligible for tax abatement for a period of five years. This abatement may only be approved by ordinance of the Township Committee.
B. 
Applicants for tax abatement on new construction shall provide the Township Committee with an application setting forth the following information:
(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 Township Committee to demonstrate the structure and design of the project.
(4) 
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.
(5) 
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 a tax agreement is granted.
(6) 
A good-faith estimate of the cost of completing such project, together with the expected method or plan of financing the improvements.
(7) 
A construction time schedule and projected time schedule.
(8) 
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 or expiration of the tax agreement.
(9) 
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 users' businesses.
(10) 
A disclosure statement of the interests of all parties, including subsidiary companies, in the property project.
(11) 
The owner shall sign the application and certify as to the truth and accuracy of the contents thereof.
C. 
Agreement.
(1) 
If the Township Committee approves the abatement, the owner shall enter into a written agreement with the township to pay a tax on the improvements in an amount equal to a percentage of taxes otherwise due according to the following schedule:
(a) 
In the first full tax year after completion, no payment of taxes due.
(b) 
In the second tax year, an amount not less than 20% of taxes otherwise due.
(c) 
In the third tax year, an amount not less than 40% of taxes otherwise due.
(d) 
In the fourth tax year, an amount not less than 60% of taxes otherwise due.
(e) 
In the fifth tax year, an amount not less than 80% of taxes otherwise due.
(f) 
In the sixth year and each year thereafter an amount of not less than 100% of taxes otherwise due.
(2) 
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.
D. 
In the event that a property owner subject to a tax agreement 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 the prior years subject to abatement and for the current year shall be payable as if no abatement had been granted. The Tax Collector shall notify the property owner and the Township Committee within 15 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 additional tax shall be due, the abatement shall continue and the agreement shall remain in effect.
E. 
The Township Clerk shall forward a copy of all tax abatement 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.
A. 
Every applicant for tax abatement shall file that form of application prescribed by the Director of the New Jersey Division of Taxation in the Department of Treasury with the Township Committee. As a condition to approval, the application must be filed within 30 days, including Saturdays and Sundays, following the completion of the improvement, conversion or construction. Every application for abatement so filed shall be allowed to the degree that the application is consistent with the provisions of this chapter; that is, the improvement, conversion, alteration or construction for which the application is made must qualify pursuant to the provisions of the law and this chapter. The applicant shall submit data in support of the application as the township shall require.
B. 
The granting of an abatement 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.
C. 
No abatements shall be granted for any property for which property taxes or any other municipal charges, including interest, are delinquent or remain unpaid or for which penalties for nonpayment are due.
D. 
All taxes and other municipal charges must be paid timely and in full during the term of the abatement.
E. 
Any tax appeal filed for the abatement property during the term of the abatement shall immediately void the tax abatement.
[Amended 12-26-17 by Ord. No. 2017-17]
No application for tax abatement shall be filed for an abatement to take initial effect for tax year 2022 or any tax year thereafter unless this chapter is readopted by the Township Committee in accordance with N.J.S.A. 40A:21-4.
If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid, the remainder of this chapter shall not be affected and shall remain in full force and effect.
All ordinances or parts of ordinances or resolutions inconsistent or in opposition to the provisions of this chapter are hereby repealed in their entirety.
This chapter shall take effect after publication and passage according to law.