[Adopted 11-10-2022 by Ord. No. 26-22]
The Borough of Rockaway hereby determines to utilize the authority
granted pursuant to the Exemption Law to establish the eligibility
of certain dwellings, multiple dwellings, commercial structures, and
industrial structures for exemption throughout the rehabilitation
area as provided in this article.
Terms used as defined terms herein shall have the meaning assigned
to such terms in the Exemption Law or as set forth below:
The Tax Assessor of the Borough of Rockaway.
The Borough of Rockaway.
The Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1
et seq.
Any building or structure of one or more stories and any
land appurtenant thereto, and any portion thereof, in which three
or more units of dwelling space are occupied, or are intended to be
occupied, by three or more persons who live independently of each
other. This definition shall also mean any group of 10 or more buildings
on a single parcel of land or on contiguous parcels under common ownership,
in each of which two units of dwelling space are occupied or intended
to be occupied by two persons or households living independently of
each other, and any land appurtenant thereto, and any portion thereof.
The entirety of the Borough of Rockaway, which was determined
to be an area in need of rehabilitation pursuant to the adoption of
Resolution No. 36-22 on February 10, 2022, by the Borough, pursuant
to the Redevelopment Law.
The Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1
et seq.
The Borough hereby authorizes the utilization of an exemption
in accordance with the Exemption Law and establishes the eligibility
of five-year tax exemptions within the rehabilitation area as set
forth herein. Improvements and conversions to, and construction of,
dwellings shall be eligible for exemptions as set forth herein. Improvements
and conversions to, and construction of, multiple dwellings shall
be eligible for exemptions as set forth herein. Improvements to and
construction of commercial structures shall be eligible for exemptions
as set forth herein. Improvements to and construction of industrial
structures shall be eligible for exemptions as set forth herein.
A.
No exemption for improvements of dwellings, multiple dwellings, commercial
structures, or industrial structures, or conversions of commercial
structures or industrial structures, or construction of dwellings
shall be granted except upon written application filed with and approved
by the Assessor. Every application shall be on a form prescribed by
the Director of the Division of Taxation in the Department of the
Treasury and shall be filed with the Assessor within 30 days, including
Saturdays and Sundays, following the completion of the improvement,
conversion, or construction.
(1)
An application fee of $75 shall be submitted by the applicant with
every application for an exemption for improvements to dwellings at
the time of filing the application with the Assessor. The application
fee covers the costs of the administrative services to be undertaken
by the Assessor, and any other Borough official, in order to render
a determination on the applicant's eligibility for an exemption.
(2)
An application fee of $500 shall be submitted by the applicant with
every application for an exemption, other than for improvements to
dwellings, at the time of filing the application with the Assessor.
The application fee covers the costs of the administrative services
to be undertaken by the Assessor, and any other Borough official,
in order to render a determination on the applicant's eligibility
for an exemption.
(3)
Every application for an exemption which is filed within the time
specified 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 improvement, construction or conversion for which
the application is made qualifies as an improvement, construction
or conversion pursuant to the Exemption Law.
(4)
The granting of an exemption shall relate back to, and take effect
as of, the date of completion of the project, or portion or stage
of the project, for which the exemption is granted and shall continue
for five annual periods from that date.
(5)
All exemptions shall be recorded and made a permanent part of the
official tax records of the Borough, which record shall contain a
notice of the termination date thereof.
B.
No exemption for construction of multiple dwellings, commercial structures,
or industrial structures shall be granted except upon written application
filed with and approved by the Borough Council. The application shall
contain the requirements set forth in N.J.S.A. 40A:21-9. Applications
for construction of multiple dwellings, commercial structures, or
industrial structures shall be submitted prior to the commencement
of construction or prior to a change in circumstance necessitating
the need for the tax exemption.
(1)
An application fee of $500 shall be submitted by the applicant with
every application for an exemption at the time of filing the application
with the Borough Council. The application fee covers the costs of
the administrative services to be undertaken by the Assessor and any
other Borough official, in order to render a determination on the
applicant's eligibility for an exemption.
(2)
An escrow deposit of $1,500 shall be submitted by the applicant with
every application for an exemption at the time of filing the application
with the Borough Council. The escrow deposit covers the actual costs
of Borough professionals' review of the application and preparation
of a tax agreement in connection therewith.
(3)
Exemptions for construction of multiple dwellings, commercial structures,
or industrial structures shall be granted or denied on an individual
basis after review and evaluation of each application and recommendation
by the Assessor to the Borough Council.
(4)
Exemptions for construction of multiple dwellings, commercial structures,
or industrial structures shall be granted or denied via the adoption
of an ordinance by the Borough Council. Ordinances approving an exemption
for construction of multiple dwellings, commercial structures, or
industrial structures shall also authorize the execution of a tax
agreement between the Borough and the applicant on a form provided
by the Borough and reviewed and approved by the applicant. The tax
agreement shall set forth which one of the formulas provided in N.J.S.A.
40A:21-10 shall be used to calculate the annual payment to the Borough
in lieu of full property tax payments and shall comply with the requirements
of N.J.S.A. 40A:21-10 through 40A:21-12.
(5)
All exemptions shall be recorded and made a permanent part of the
official tax records of the Borough, which record shall contain a
notice of the termination date thereof.
A.
Dwellings.
(1)
For Improvements to dwellings, in determining the value of real property
for an exemption, the Borough shall 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 improvement in any dwelling
more than 20 years old 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 there is damage to the dwelling through
action of the elements sufficient to warrant a reduction. The total
amount of the exemption granted to any single property shall not exceed
the total cost of the improvement.
(2)
For construction of dwellings and conversions of other buildings
or structures to dwellings, the Borough shall regard 30% of the Assessor's
full and true value of the dwelling constructed or conversion made
as not increasing the value of the property for a period of five years,
notwithstanding that the value of the property to which the construction
or conversion is made is increased thereby.
B.
Multiple dwellings.
(1)
For Improvements to multiple dwellings and conversions of other buildings
and structures to multiple dwellings, in determining the value of
real property for an exemption, the Borough shall regard the Assessor's
full and true value of the improvements or conversion 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 or conversion
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 or conversion, unless there
is damage to the multiple dwelling through action of the elements
sufficient to warrant a reduction.
(2)
For construction of multiple dwellings, the tax agreement between
the Borough and the applicant shall specify which one of the formulas
provided in N.J.S.A. 40A:21-10 shall be used to calculate the annual
payment to the Borough in lieu of full property tax payments.
C.
Commercial structures and industrial structures.
(1)
For improvements to commercial structures and industrial structures,
in determining the value of real property for an exemption, the Borough
shall regard the Assessor's full and true value of 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 there is damage to the
commercial structure or industrial structure through action of the
elements sufficient to warrant a reduction.
(2)
For construction of commercial structures or industrial structures,
the tax agreement between the Borough and the applicant shall specify
which one of the formulas provided in N.J.S.A. 40A:21-10 shall be
used to calculate the annual payment to the Borough in lieu of full
property tax payments.
D.
Additional improvements. Additional Improvements completed during
a period in which a property is subject to a previously granted exemption
shall qualify for additional exemptions just as if such property had
not received a previous exemption. The additional improvement, conversion
or construction shall be considered as separate for the purposes of
calculating exemptions.
No exemption shall be granted pursuant to this article with
respect to any property for which real estate taxes or other municipal
charges are delinquent or remain unpaid, or for which penalties and
interest for nonpayment of taxes are due.
In the event that the Borough implements a revaluation or reassessment
during the exemption period for any property, any exemptions granted
hereunder shall continue to apply but at a valuation level consistent
with the revaluation or reassessment.
The granting of an exemption for a particular property shall
not prejudice the right of the Borough to appropriately examine and
revise the assessment during the exemption period in the event the
base assessment is found to be improperly valued and assessed.
The exemption of real property taxes provided by the Borough
pursuant to this article shall apply to property taxes levied for
municipal purposes, school purposes, county government purposes, and
the purposes of funding any other property tax exemptions.
Upon final passage and publication, this article shall take
effect as provided by law.
