Egg Harbor City, NJ
Atlantic County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Common Council of the City of Egg Harbor City as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Fee for certificate of tax sale — See Ch. 139, Art. VII.
Payment of property taxes prior to issuance of permits — See Ch. 174, Art. II.
[Adopted 3-13-2003 by Ord. No. 3-2003[1]]
[1]
Editor's Note: This ordinance superseded former Art. I, Tax Exemption for New Construction, adopted 2-25-1993 by Ord. No. 2-1993, and was readopted 9-8-2011 by Ord. No. 18-2011, which ordinance also added the provisions found in § 241-4.1.
A. 
The Legislature of the State of New Jersey has determined that various statutes authorized by Article 8, § 1, Paragraph 6, of the New Jersey Constitution permit municipalities to grant exemptions from taxation for periods of five years in areas in need of rehabilitation, and this has 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.
B. 
The Legislature stated that it is the purpose of N.J.S.A. 40A:21-1 et seq. to permit municipalities the greatest flexibility possible within the constitutional limitations to address problems of deterioration and decay while preserving the salient features of existing tax exemption or abatement programs.
C. 
N.J.S.A. 40A:21-4 enables the governing body of a municipality to utilize the authority granted under Article 8, § 1, Paragraph 6, of the New Jersey Constitution to adopt an ordinance setting forth the eligibility or noneligibility of dwellings, multiple dwellings or commercial and industrial structures, or all of these, for exemptions or abatements, or both, from taxation in areas in need of rehabilitation.
D. 
The governing body of the municipality has determined that, apart from existence of any area in the municipality that has been or could be formally declared blighted or in need of rehabilitation, there are trends toward deterioration that, unless countered by such incentives, will inexorably tend toward such conditions within a municipality.
E. 
The Common Council of the City of Egg Harbor City has determined that in order to provide gainful employment within the City and to assist in the economic development of the City and maintain, diversify and expand commerce within the city, the greater interest of the City of Egg Harbor City is served by encouraging the development of new commercial and industrial structures through the tax exemptions set forth in N.J.S.A. 40A:21-1 et seq. and this article.
F. 
N.J.S.A. 40A:21-8 enables the municipality to adopt an ordinance which shall provide for tax agreements for the exemption and abatement from taxation for construction of commercial or industrial strictures or multiple dwellings, or both, with said ordinance setting forth the procedures for entering into the agreements for the exemption or abatement of real property taxes.
Pursuant to N.J.S.A. 40A:21-9, applicants for tax exemption for new construction of commercial or industrial structures shall provide the municipal governing body with an application setting forth:
A. 
A general description of a project for which exemption is sought.
B. 
A legal description of all real estate necessary for the project.
C. 
Plans, drawings and other documents as may be required by the governing body to demonstrate the structure and design of the project.
D. 
A description of the number, classes and types of employees to be employed at the project site within two years of completion of the project.
E. 
A statement of the reasons for seeking tax exemption on the project and a description of the benefits to be realized by the applicant if a tax agreement is granted.
F. 
Estimates of the cost of completing such project.
G. 
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.
H. 
If the project is a commercial or industrial structure, a description of any lease agreements between the applicant and proposed users of the project and a history and description of the users' businesses.
I. 
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 dwellings' units respecting low- or moderate-income housing.
J. 
Such other pertinent information as the governing body may require.
Upon adoption of an ordinance authorizing a tax agreement for a particular commercial or industrial project, commercial or industrial, the Common Council of the City of Egg Harbor City may enter into a written agreement with the applicant for the exemption of local real property taxes. The agreement shall provide for the applicant to pay to the municipality, in lieu of full property tax payments, an amount annually to be computed by the formula set forth in N.J.S.A. 40A:21-10(c).
Pursuant to N.J.S.A. 40A:21-10(c), the tax 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:
A. 
In the first full tax year after completion, no payment in lieu of taxes otherwise 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.
[Added 9-8-2011 by Ord. No. 18-2011[1]]
This article is hereby amended to include the new construction of dwellings as eligible for tax exemptions and abatements as provided for in N.J.S.A. 40A:21-3 et seq., and all provisions of N.J.S.A. 40A:21-3 et seq., including but not limited to application procedures, tax abatement agreements and payment in lieu of taxes, shall be available for new construction of dwellings.
[1]
Editor’s Note: This ordinance readopted Ord. No. 3-2003 and amended the ordinance to include the provisions of this section.
[Adopted 8-9-2012 by Ord. No. 13-2012[1]]
[1]
Editor's Note: This ordinance superseded former Art. II, Tax Exemption for Certain Rehabilitated or Improved Residential Dwelling Units, adopted 4-22-2004 by Ord. No. 4-2004.
A. 
The Legislature of the State of New Jersey has determined that various statutes authorized by Article VIII, Section 1, Paragraph 6, of the New Jersey Constitution permit municipalities to grant exemptions from taxation for periods of five years in areas in need of rehabilitation and this has proven to be effective in promoting the construction and rehabilitation of residential, commercial and industrial structures in areas threatened with economic and social decline.
B. 
The Legislature stated that it is the purpose of N.J.S.A. 40A:21-1 et seq. to permit municipalities the greatest flexibility possible within the Constitutional limitations to address problems of deterioration and decay while preserving the salient features of existing tax exemption or abatement programs.
C. 
N.J.S.A. 40A:21-4 enables the governing body of a municipality to utilize the authority granted under Article VIII, Section 1, Paragraph 6, of the New Jersey Constitution to adopt an ordinance setting forth the eligibility or noneligibility of dwellings, multiple dwellings, or commercial and industrial structures, or all of these, for exemptions or abatements, or both, from taxation in areas in need of rehabilitation.
D. 
The governing body of the municipality has determined that, apart from existence of any area in the municipality that has been or could be formally declared blighted or in need of rehabilitation, there are trends toward deterioration that, unless countered by such incentives, will inexorably tend toward such conditions within a municipality.
E. 
The Common Council of the City of Egg Harbor City has determined that in order to provide gainful employment within the City and to assist in the economic development of the City and maintain, diversify, and expand commerce within the City, the greater interest of the City of Egg Harbor City is served by encouraging the improvement and/or rehabilitation of structures through the tax abatements and/or exemptions set forth in N.J.S.A. 40A:21-1 et seq. and this article.
F. 
N.J.S.A. 40A:21-5 enables the municipality to adopt an ordinance which shall provide for tax agreements for the exemption and/or abatement from taxation for improvements to dwelling units, with said ordinance setting forth the procedures for entering into the agreements for the exemption or abatement of real property taxes.
The municipality hereby adopts a tax exemption program wherein the first $25,000 in the Assessor's full and true value of home improvements for each dwelling unit primarily and directly affected by a home improvement in any single or multiple dwelling property more than 20 years old shall be regarded as not increasing the value of such property for a period of five years, notwithstanding that the value of the dwelling to which such improvements are made is increased thereby.
In no event, however, shall the assessment during that period be less than the assessment thereon existing immediately prior to such home improvements, unless there shall be damage through action of the elements sufficient to warrant a reduction.
The above amounts up to $25,000 shall be deducted from the amount determined by the Assessor on October 1 of any year following the completion of the improvements to be the true taxable value of the improvements and shall continue to be so treated for each of the five tax years subsequent to the original determination by the Assessor.
Additional improvements, completed during a period in which the improved property is subject to the previously granted exemption privileges in an amount less than the maximum deductible permissible, shall be qualified for additional deduction privileges under terms and conditions herein specified; provided, however, that no tax year shall the total deductions for any single property exceed $25,000.
A claimant desiring to seek the tax abatement and/or exemption to the above shall file a written application with the Tax Assessor of the City of Egg Harbor City pursuant to the terms and conditions of N.J.S.A. 40A:21-1 et seq., and in compliance with the application requirements of N.J.S.A. 40A:21-16.
Any and all claimants seeking a tax exemption or abatement for improvements to dwellings as hereinbefore described shall provide the municipal governing body with an application setting forth:
A. 
A general description of a project for which exemption is sought;
B. 
A legal description of all real estate necessary for the project;
C. 
Plans, drawings and other documents as may be required by the governing body to demonstrate the structure and design of the project;
D. 
A description of the number, classes and types of employees to be employed at the project site within two years of completion of the project;
E. 
A statement of the reasons for seeking tax exemption on the project, and a description of the benefits to be realized by the applicant if a tax agreement is granted;
F. 
Estimates of the cost of completing such project;
G. 
A statement showing:
(1) 
The real property taxes currently being assessed at the project site;
(2) 
Estimated tax payments that would be made annually by the applicant on the project during the period of the agreement; and
(3) 
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;
H. 
If the project is a commercial or industrial structure, a description of any lease agreements between the applicant and proposed users of the project, and a history and description of the users' businesses;
I. 
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 dwellings' units respecting low- or moderate-income housing; and
J. 
Such other pertinent information as the governing body may require.
Upon adoption of an ordinance authorizing a tax agreement for a particular claimant and/or property which has been rehabilitated, the Common Council of the City of Egg Harbor City may enter into a written agreement with the applicant for the exemption of local real property taxes as previously stated herein. The agreement shall provide for the exemption of an amount not to exceed $25,000 for the said rehabilitation of the dwelling for a period of five years.
In the purpose of this act, the definitions of the words: "abatement," "area in need of rehabilitation," "Assessor," "commercial or industrial structure," "completion," "condominium," "construction," "conversion," "cooperative," "costs," "dwelling," "exemptions," "horizontal property regime," "improvement," and "multiple dwelling" shall be defined as articulated in N.J.S.A. 40A:21-3.