[HISTORY: Adopted by the Common Council of
the City of Egg Harbor City as indicated in article histories. Amendments
noted where applicable.]
[Adopted 3-13-2003 by Ord. No. 3-2003[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.
