[HISTORY: Adopted by the Township Council of the Township of Monroe as indicated in article histories. Amendments noted where applicable.]
Article I Tax Exemption for Commercial or Industrial Improvements or Projects
Article II Hotel and Motel Room Occupancy Tax
[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]
The Township may enter into agreements with applicants for tax abatement on commercial and industrial improvements or projects, pursuant to the provisions of P.L. 1991, c. 441, as amended, providing for an exemption from real property taxation on projects for a period of five years.
Editor's Note: See N.J.S.A. 40A:21-1 et seq.
Definitions. As used in this article, the following terms shall have the meanings indicated:
- AREA IN NEED OF REHABILITATION
- Any area so certified by the Commission of Community Affairs upon application by the governing body of a qualified municipality.
- COMMERCIAL OR INDUSTRIAL STRUCTURE
- Any structure or part thereof used for manufacturing, processing, assembling, research, office, industrial, commercial, retail, recreational, hotel or warehousing purposes.
- The modernization, rehabilitation, renovation, alteration, or repair of a commercial or industrial structure that does not increase the volume of the structure by more than 30%.
- 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 following procedures shall govern agreements for tax abatement entered into by the Township and applicants.
Pursuant to N.J.S.A. 40A:21-7, all commercial improvements as defined in N.J.S.A. 40A:21-3(a) are subject to tax abatement.
Granting of exemption.
Applicants must apply for tax exemption on improvements prior to the issuance of a certificate of occupancy. Tax abatement for improvements may be granted in one of two ways. The first is for improvements that do not increase the volume of the structure (such as new siding, windows, roofs, etc.) For these types of improvements, the Law/Tax Abatement Committee shall review and approve the application. The application may be filed at least 60 days prior to completion of improvements and must be filed prior to the issuance of a certificate of occupancy.
The second exemption for improvements is for those that will increase the volume of the structure by less than 30%. These applications must be reviewed, evaluated and approved by the Township Council of the Township of Monroe. The application may be filed at least 60 days prior to completion of improvements and must be filed prior to the issuance of a certificate of occupancy. (Note: if the improvement will increase the volume of the structure by more than 30%, see the following section on tax abatement for projects).
Please note that the tax exemption for improvements using either provision mentioned above means that real property taxes shall be paid on the improvement pursuant to the amounts as set forth under state statute for a period of not more than five years starting January 1 following the completion of the project.
Tax abatement for projects is the second major component of the program. This program is for new projects or those that increase the volume of an existing structure by more than 30%.
Every properly completed application for exemption of improvements shall be acted upon within 60 days of its filing.
Pursuant to N.J.S.A. 40A:21-9, to be considered for tax abatement, a project must contain a minimum of 5,000 square feet of floor space per use. All applications must be filed with the Law/Tax Abatement Committee prior to the issuance of a certificate of occupancy.
Tax abatement applications will be considered for approval for such uses as permitted by N.J.S.A. 40A:21-1 et seq.
The Township of Monroe may consider all projects that are permissible by law.
The completed application shall be submitted to the Township Clerk for the Law/Tax Abatement Committee. The application must be submitted prior to the issuance of the certificate of occupancy. 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. The term of the members shall be for a period of one year. Upon receipt of a completed application, the Committee, within 30 days thereof, shall recommend to the governing body the appropriate action.
The applicant shall submit the following information to the Law/Tax Abatement Committee on an application approved by said Committee:
Please indicate whether the improvement involves enlargement of an existing structure in excess of 30%, or whether the improvement involves new construction.
Describe the type of business(es) that are intended to operate from these facilities. Include a general description of products or services offered.
Include lot and block numbers and names of owners. If a corporation, include name, state and date of incorporation. Include copies of any surveys if available. Include a metes-and-bounds description.
Plans should include those which describe all physical characteristics of the site and the building(s).
Estimate the number of and general types of employees. Also included may be required skills or education/training of potential employees and pay scales. Estimate the number of employees two years after completion.
Explain why tax abatement is an important issue in the decision to locate in the Township of Monroe, and why the project will be of long-term benefit to the residents, businesses, and citizens of Monroe Township.
Cost estimates may be in a lump sum-form. A detailed breakdown is not necessary, but may be requested at a later date.
Submit cost estimates to the Law/Tax Abatement Committee prior to completion of this application. The Law/Tax Abatement Committee will then provide assistance in completing this section.
If the project is to be leased to another party, please provide a copy of the lease agreement and a history and description of the proposed user's (tenant's) business. If the applicant is to use 100% of the facility for his or her own business, this section may be disregarded, and move on to Subsection B(10).
Include such information as founding date, background of company and owners, description of products or services offered, major expansions or facility closures. If the applicant is a corporation, provide date and state of incorporation, officers' names, and ownership of any subsidiaries. Include any other information that may assist the governing body in considering the application. Please include details, if applicable, of any actions taken against the firm or proposed users by any government and/or regulatory agency, within the last five years, and the resolution of same.
Provide a complete financial statement indicating applicant's assets and liabilities particularly purchase price and mortgage on the property that is the subject of this application. Disclose any bankruptcies, loan defaults, tax delinquencies, or foreclosures, contingent liabilities or other matters which may affect the financial condition of the applicant.
Upon adoption of a resolution authorizing an agreement or agreements on particular projects or projects, the governing body may enter into written agreements with the applicants for the exemption and abatement of local property taxes. An agreement shall provide for the applicant to pay the municipality, in lieu of full property tax payments, an amount annually to be computed pursuant to N.J.S.A. 40A:21-10. Any tax abatement agreement entered into between the Township and the applicant shall cease upon the transfer of real estate. A copy of the adopted resolution and the fully executed agreement or agreements shall be forwarded to the County Tax Assessor for implementation.
Within 30 days after execution of a property tax abatement agreement, a copy of such agreement must be forwarded to the Commissioner of the Department of Labor and Industry and to the Director of the Division of Local Government Services.
[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:
All taxes imposed by this article shall be paid by the purchaser.
A vendor shall not assume or absorb any tax imposed by this article.
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.
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.
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.