Township of Monroe, NJ
Gloucester County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Township Council of the Township of Monroe as indicated in article histories. Amendments noted where applicable.]
[Adopted 4-14-1998 by Ord. No. O-7-98; amended in its entirety 12-11-2002 by Ord. No. O-22-2002; 4-28-2014 by Ord. No. O:09-2014; 4-9-2018 by Ord. No. O:09-2018]
All previous ordinances adopted by the Township of Monroe related to abatements and exemptions for properties located in areas in need of rehabilitation are superseded by this article.
The intention of this article is to effectuate and accomplish the purposes authorized by N.J.S.A. 40A:21-1 et seq., which permits municipalities to grant for periods of five years exemptions and/or abatements, or both, from taxation in areas of the municipality in need of rehabilitation have proven to be effective in promoting the construction and rehabilitation of residential and commercial and industrial structures in areas threatened with economic and social decline. The intended purpose of this article is to promote the improvement, rehabilitation and/or construction of dwellings, multiple dwellings, commercial structures, industrial structures and mixed-use structures within rehabilitation areas of the Township.
The Township Council hereby authorizes the utilization of tax exemption and abatement in accordance with Article VIII, Section 1, Paragraph 6 of the New Jersey Constitution and establishes the eligibility of residential dwellings, multiple dwellings, condominiums and cooperatives and the eligibility of commercial and industrial structures for exemptions and abatements permitted by P.L. 1991, c. 441 (see N.J.S.A. 40A:21-1 et seq.), throughout areas designated, or to be designated, as in need of rehabilitation.
This article authorizes the Township of Monroe to grant exemptions and abatements to commence and take effect in the 2018 tax year and thereafter.
A. 
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, those words shall have the meanings as so defined unless a different meaning is clearly expressed.
B. 
Additional terms. As used in this article, the following definitions shall apply:
ANNUAL PERIOD
A duration of time comprising of 365 days, or 366 days when the included month of February has 29 days, that commences on the date that an exemption or abatement for a project becomes effective.
LAW/TAX ABATEMENT COMMITTEE
The Law/Tax Abatement Committee shall consist of three members of Township Council who are appointed by the President of Township Council at the annual Township Reorganization Meeting. The term of the members shall be for a period of one year.
MIXED-USE STRUCTURE
A structure with two or more different uses such as residential, commercial or industrial.
MUNICIPAL CHARGES
Property taxes, assessments, water or sewer charges and any other charge for which a lien may be created, together with interest and penalties thereon, including all advertising fees and costs of sale.
QUALIFIED MUNICIPALITY
Any municipality which has qualified for state aid under P.L. 1971, c. 64, as supplemented, or a municipality certified by the Commissioner of Community Affairs to qualify under such law in every respect except population.
THE ACT
The Five Year Exemption and Abatement Law, N.J.S.A. 40A:21-1 et seq. enacted into law on or about January 18, 1992, as amended and supplemented.
A. 
There shall be an exemption from taxation of improvements to residential owner-occupied, single-family dwellings and the owner-occupied residential portion of mixed-use dwellings more than 20 years old. In determining the value of real property, the Township shall regard the first $25,000 in the County 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 there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
B. 
The Township of Monroe hereby determines to provide an additional abatement of some portion of the assessed value for a residential dwelling eligible for and receiving an exemption under Subsection A of this section. An abatement for a dwelling may be granted for a total of up to five years, and the annual amount granted to any single property shall not exceed 30% of the annual amount of the exemption granted under Subsection A of this section for each of the five years subject to the abatement.
C. 
The Township of Monroe hereby determines to provide, in addition to the exemptions provided in this article, an abatement of the assessed valuation of conversions of buildings and structures to single family dwelling use, as it existed immediately prior to the conversion alteration.
D. 
An abatement for a dwelling may be granted for a total of up to five years, and the annual amount granted to any single property shall not exceed 30% of the total cost of the conversion alteration. The total amount of the abatements granted to any single property shall not exceed the total cost of the conversion alteration.
A. 
There shall be an exemption from taxation of improvements to multiple dwellings. In determining the value of the real property, the Township of Monroe shall regard the first $25,000 in the County Assessor's full and true value of the improvements or conversion alterations as not increasing the value of the property for a total of five years, notwithstanding that the value of the property upon which the construction or conversion alteration occurs 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 Subsection B of this section, or there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction. An exemption pursuant to this section shall be approved by the County Assessor prior to the governing body adopting an ordinance authorizing an agreement.
B. 
There may be an abatement of a portion of the assessed value of property receiving an exemption pursuant to § 252-4.3A of this article as it existed immediately prior to the improvement or conversion alteration. An abatement for a multiple dwelling may be granted by the Township Council with respect to such property for five years. The annual amount of the abatement shall be equal to 20% of the total cost of the improvements or conversion alteration of the property, provided that the annual amount of the abatement shall not exceed 30% of the total cost of the improvements or the conversion alteration. An application for abatement pursuant to this section shall be made to the governing body in the form set forth in § 252-4.6 of this article.
A. 
There shall be an exemption from taxation of improvements to commercial and industrial structures. In determining the value of the real property, the Township shall regard the first $50,000 in the County Assessor's full and true value of the improvements or conversion alterations as not increasing the value of the property for a total of five years, notwithstanding that the value of the property upon which the construction or conversion occurs 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.
B. 
Any applicant for a tax exemption in excess of $50,000 shall make application to the Township Clerk for the Law/Tax Abatement Committee pursuant to §§ 252-4.6 and 252-4.7 of this article. An application for exemption pursuant to this § 252-4.4B may be approved after review and evaluation by the Law/Tax Abatement Committee.
C. 
An exemption pursuant to § 252-4.4A of this article shall be approved by the County Assessor prior to the governing body adopting an ordinance authorizing an agreement.
The governing body of the Township of Monroe is hereby authorized to enter into tax agreements for an exemption and abatement from taxation of new construction of commercial structures, industrial structures and multiple dwellings in accordance with the procedures set forth in §§ 252-4.6 through 252-4.12 of this article.
A. 
Applicants for tax exemption and abatement for a new construction of commercial structures, industrial structures and multiple dwellings pursuant to § 252-4.5 of this article shall provide a completed application setting forth the following information to the Township Clerk for the Law/Tax Abatement Committee. The application must be submitted prior to the issuance of the certificate of occupancy.
(1) 
A general description of a project for which exemption and 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 governing body 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 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 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 of the tax agreement.
(8) 
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 user's businesses.
(9) 
If the project is a multiple dwelling, a description of the number and types of dwelling units to be provided, a description of the common elements or general common elements and a statement of the proposed initial rentals or sales prices of the dwelling units according to type and of any rental lease or resale restrictions to apply to the dwellings' units respecting low- or moderate-income housing;
(10) 
Such other pertinent information as the Law/Tax Abatement Committee may require on a case-to-case basis.
B. 
Upon receipt of a completed application, the Law/Tax Abatement Committee, within 30 days thereof, shall recommend to the governing body the appropriate action.
The governing body of the Township of Monroe may enter into a written agreement with an applicant for the exemption and abatement of local property taxes. All agreements are contingent upon approval by the County Tax Assessor. The agreement shall provide for the applicant to pay the municipality in lieu of full property taxes an amount equal to a percentage of taxes otherwise due according to anyone, but in no case a combination, of the following formulas authorized by N.J.S.A. 40A:21-10:
A. 
Cost basis. The agreement may provide for the applicant to pay to the municipality in lieu of full property tax payments an amount equal to 2% of the cost of the project or improvement. For the purposes of the agreement, "the cost of the project" means only the cost or fair market value of direct labor and all materials used in the construction, expansion or rehabilitation of all buildings, structures and facilities at the project site, including the costs, if any, of land acquisition and land preparation, provision of access roads, utilities, drainage facilities and parking facilities, together with architectural, engineering, legal surveying, testing and contractors' fees associated with the project, which the applicant shall cause to be certified and verified to the governing body by an independent and qualified architect following the completion of the project.
B. 
Gross revenue basis. The agreement may provide for the applicant to pay to the municipality in lieu of full property tax payments an amount annually equal to 15% of the annual gross revenues from the project. For the purposes of the agreement, "annual gross revenues" means the total annual gross rental and other income payable to the owner of the project from the project. If, in any leasing, any real estate taxes or assessments on property included in the project, any premiums for fire or other insurance on or concerning property included in the project or any operating or maintenance expenses ordinarily paid by the landlord are to be paid by the tenant, then those payments shall be computed and deemed to be part of the rent and shall be included in the annual gross revenue. The tax agreement shall establish the method of computing the revenues and may establish a method of arbitration by which either the landlord or tenant may dispute the amount of payments so included in the annual gross revenue.
C. 
Tax phase-in basis. The agreement may provide for the applicant to pay to the municipality 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 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.
(5) 
In the fifth tax year, an amount not less than 80% of taxes otherwise due.
A. 
Upon receipt of the recommendation by the Law/Tax Abatement Committee, the governing body will adopt an ordinance. A copy of the adopted ordinance and tax agreement shall be forwarded to the County Tax Assessor for approval and implementation.
B. 
The County Assessor shall determine on October 1 of the year following the date of the completion of an improvement, conversion or construction the true taxable value thereof. Except for projects subject to a tax agreement pursuant to § 252-4.5 of this article, the amount of the tax to be paid for the first full tax year following completion shall be based on the assessed valuation of the property for the previous year, minus the amount of the abatement and/or exemption, if any, allowed pursuant to this article, plus any portion of the assessed valuation of the improvement, conversion or construction not allowed an exemption pursuant to this article.
C. 
All tax agreements entered into pursuant to this article shall be in effect for no more than the five full tax years next following the date of completion of the project. This article shall not preclude the governing body from entering into a financial agreement for a tax exemption and/or abatement pursuant to the Long Term Tax Exemption Law or any other statute authorizing a tax exemption and/or abatement for a period longer than five years.
D. 
As a condition to granting an exemption or abatement, a property owner shall be required to waive the filing of any tax appeal for the subject property for the life of the exemption/abatement.
The Clerk of the Township of Monroe, pursuant to N.J.S.A. 40A:21-11, shall forward all tax agreements entered into pursuant to this article 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.
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 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 exemption or abatement has been granted. The Tax Collector of the Township of Monroe shall notify the property owner within 30 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 tax shall be due, the exemption and abatement shall continue and the agreement shall remain in effect.
The Township of Monroe hereby determines that an additional improvement, conversion or construction completed on a property already granted a previous exemption or abatement pursuant to this article during the period in which the previous exemption or abatement is in effect shall qualify for an additional exemption or abatement. The additional improvement, conversion or construction shall be considered as separate for purposes of calculating the exemption and abatement, 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 for which any additional abatement is to be subtracted.
No exemption or abatement shall be granted or tax agreement entered into pursuant to this article for any property for which property taxes and/or other municipal charges are delinquent or remain unpaid, or for which penalties for nonpayment of taxes are due. As a condition to granting an exemption or abatement, a property owner shall be required to waive the filing of any tax appeal for the subject property for the life of the exemption/abatement.
Every application submitted pursuant to this article shall be on a form prescribed by the Township of Monroe and shall be filed with the Township Clerk prior to the issuance of a certificate of occupancy.
At the termination of an agreement for tax abatement or exemption authorized pursuant to this article, the project shall be subject to all applicable real property taxes, as provided by state laws and regulations and local ordinances, provided that nothing herein shall be deemed to prohibit the project or improvement at the termination of the agreement for tax exemption or abatement from qualifying for and receiving the full benefits of any other tax preference provided by law.
[Adopted 8-22-2006 by Ord. No. O-30-2006]
It is the purpose of this article to implement the provisions of P.L. 2003, c. 114, authorizing the governing body of a municipality to adopt an ordinance imposing a tax at a uniform percentage rate not to exceed 1% on charges of rent for every occupancy on or after July 1, 2003, but before July 1, 2004, and not to exceed 3% on charges of rent for every occupancy on or after July 1, 2004, a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966, c.40 (N.J.S.A. 54:32B-3), which shall be in addition to any other tax or fee imposed pursuant to state statute or local ordinance or resolution by any governmental entity upon the occupancy of a hotel or motel room.
There is hereby established a hotel and motel room occupancy tax in the Township of Monroe which shall be fixed at a uniform percentage rate of 3% on charges of rent for every occupancy of a hotel or motel room in the Township of Monroe pursuant to Subsection (d) of Section 3 of P.L. 1966, c. 40 (N.J.S.A. 54:32B-3) (sales tax).
The hotel and motel room occupancy tax shall be in addition to any other fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of a hotel room.
In accordance with the requirements of P.L. 2003, c.114:
A. 
All taxes imposed by this article shall be paid by the purchaser.
B. 
A vendor shall not assume or absorb any tax imposed by this article.
C. 
A vendor shall not in any manner advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the tax will be assumed or absorbed by the vendor, that the tax will not be separately charged and stated to the customer or that the tax will be refunded to the customer.
D. 
Each assumption or absorption by a vendor of the tax shall be deemed a separate offense, and each representation or advertisement that continues shall be deemed a separate offense.
E. 
The penalty for violation of the foregoing provisions shall be a fine not exceeding $1,250, a term of imprisonment not exceeding 90 days or a period of community service for a period not exceeding 90 days, or any combination thereof, for each offense.
The tax imposed by this article shall be collected on behalf of the Township by a person collecting the rent from the hotel or motel customer. Each person required to collect the tax herein imposed shall be personally liable for the tax imposed, collected or required to be collected hereunder. Any such person shall have the same right in respect to collecting the tax from a customer as if the tax were a part of the rent and payable at the same time, provided that the Chief Financial Officer of the Township shall be joined as a party in any action or proceeding brought to collect the tax.