[HISTORY: Adopted by the Township Committee
of the Township of Egg Harbor 9-8-1999 by Ord. No. 37-1999. Amendments noted
where applicable.]
[Amended 5-10-2000 by Ord. No. 15-2000]
The Township may enter into agreements with applicants for tax abatement on commercial and industrial construction projects located in the commercial, business and industrial zones designated as NB, CB, HB, RCD, RB, MC, PO-1, PO-2, M-1 and R-I, collectively, or any other zoning district in which the commercial and industrial construction project is deemed to be a permitted use by either the Egg Harbor Township Planning Board or Zoning Board of Adjustment, as appropriate, the "qualified zones," which provide for an abatement from real property taxation on projects for a period of up to five years. During such five-year period, the tax agreements shall provide for payments to the Township of Egg Harbor in lieu of full property taxes, which payments shall be calculated as set forth in § 201-4 of this chapter. Applications for abatement from taxation may be filed to take initial effect for the first full tax year commencing after the tax year in which the ordinance is adopted and for tax years thereafter as set forth in P.L. 1991, c. 441 (N.J.S.A. 40A:21-1 et seq.), but no application for abatement shall be filed for abatements to take initial effect for the 11th full tax year or any tax year occurring thereafter unless an ordinance readopting the ordinance by the governing body of the Township of Egg Harbor is passed.[1]
[1]
Editor's Note: This chapter, adopted 9-8-1999 by Ord. No.
37-1999, was readopted in its entirety for an additional 10 years
8-12-2009 by Ord. No. 30-2009; 5-5-2021 by Ord. No. 22-2021.
[Amended 8-12-2009 by Ord. No. 30-2009]
To be considered for tax abatement for new construction or other
construction as defined herein of commercial or industrial structures
pursuant to N.J.S.A. 40A:21-9, a project must contain a minimum of
5,000 square feet of floor space per use. To be considered for tax
abatement for new condominium construction as defined herein of commercial
or industrial structures pursuant to N.J.S.A. 40A:21-9, a project
must contain a minimum of 10,000 square feet of floor space with each
individual unit containing a minimum of 2,500 square feet of floor
space per use. To be considered for tax abatement for major rehabilitation
as defined herein of existing commercial and industrial structures
pursuant to N.J.S.A. 40A:21-9, a project must increase the assessed
value of the structure by a minimum of 25% of the existing structure
assessed value. All such applications regarding new construction and
other construction must be filed with the Tax Assessor with a copy
provided to the governing body. Every application must be filed with
the Assessor within 30 days, including Saturdays and Sundays, following
substantial completion of the improvement, alteration or new construction.
The application must be a form prescribed by the Director of the Division
of Taxation in the Department of Treasury, and must set forth:
A.Â
A general description of this project for which abatement is sought.
B.Â
A legal description of all real estate necessary for the project.
C.Â
Plans and drawings, including a site layout on the total lot area,
and other documents as may be required by the governing body to demonstrate
the structure and design of the project.
D.Â
A description of the number, classes, types of employees and average
estimated wages and salaries by employee class, to be employed at
the project site within two years of the completion of the project.
E.Â
A statement of the reasons for seeking tax abatement on the project
and a description of the benefits to be realized by the application
if tax abatement is granted.
F.Â
Estimates of the cost of completing such project.
G.Â
A statement showing the real property taxes currently assessed at
the project site; estimated tax payments that would be made annually
by the applicant on the project during the period of tax abatement;
and estimated tax payments that would be made by the applicant on
the project during the first year following the termination of the
tax abatement agreement.
H.Â
A description of any lease agreements between the applicant and proposed
users of the project, and a history and description of the user's
business.
I.Â
Proof of payment of taxes through the current quarter.
J.Â
Other pertinent data regarding the relationship, agreements and status
of other properties owned by the applicant within the Township of
Egg Harbor.
K.Â
Such other pertinent information as the governing body may require.
Applications for tax abatement will be considered
for uses such as:
A.Â
Light industrial, light manufacturing and indoor warehousing
facilities which are nonpolluting and nonnoxious.
B.Â
Scientific or industrial research engineering laboratory,
testing or experimental laboratory or similar establishment for research
or product development.
C.Â
Administrative offices.
D.Â
Wholesale distributorships.
E.Â
Experimental, research testing, dental or medical
laboratories.
F.Â
Carpet or rug cleaning, laundry and dry cleaning.
G.Â
Job printing and newspaper or book publishing.
H.Â
Baking and food and dairy processing.
I.Â
Corporate and professional offices.
J.Â
General service and repair shops, including carpenter,
cabinet making, furniture repair, plumbing or similar shop.
K.Â
Office of a builder, carpenter, caterer, cleaner,
contractor, decorator, electrician, furrier, mason, painter, plumber,
roofer, upholsterer and similar nonnuisance businesses, excluding
open storage of materials and excluding open storage of motor vehicles.
L.Â
Veterinary hospital, provided that all animals are
kept in a permanent enclosed structure and are not within 150 feet
of any existing residential use or zone.
M.Â
Businesses and instructional school, including trade
school.
N.Â
Nursing homes, homes for the aged and assisted living
facilities.
O.Â
General commercial establishments permitted by zoning
for the qualified zones.
P.Â
Accessory uses on the same lot with and customarily
incidental to any of the above permitted uses.
Q.Â
Recreational uses, including, without limitations,
golf facilities, family-oriented recreational centers and uses reasonably
related thereto.
[Added 5-10-2000 by Ord. No. 15-2000]
R.Â
Substantial
rehabilitation of an existing commercial or industrial structure which
increases the structure assessed value by 25% or more of the existing
structure assessed value.
[Added 8-12-2009 by Ord. No. 30-2009]
A.Â
Applications for particular project or projects. Upon
adoption of an ordinance authorizing an agreement or agreements for
particular project or projects, the governing body may enter into
written agreements with the applicants for the abatement of local
real property taxes. Before the municipality enters into any such
tax agreements, the municipality must adopt an ordinance authorizing
the execution of each such agreement. Such tax agreements may only
be authorized by ordinance and not by resolution.
B.Â
Payment in lieu of taxation. An 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 following formula:
(1)Â
Tax phase-in basis: The applicant must 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
formula:
(a)Â
In the first full tax year after completion,
no payment in lieu of taxes otherwise due.
(b)Â
In the second tax year, an amount not less than
20% of taxes otherwise due.
(c)Â
In the third tax year, an amount not less than
40% of taxes otherwise due.
(d)Â
In the fourth tax year, an amount not less than
60% of taxes otherwise due.
(e)Â
In the fifth tax year, an amount not less than
80% of taxes otherwise due.
C.Â
Duration. All tax agreements entered into by virtue
of this chapter shall be in effect for no more than five full tax
years next following the date of completion of the project. Within
30 days after the execution of a tax agreement, the Township shall
forward a copy of the agreement to the Director of the Division of
Local Government Services in the Department of Community Affairs.
D.Â
Delinquencies. No exemption or abatement shall be
granted or tax agreement entered into with respect to any property
for which property taxes are delinquent or remain unpaid, or for which
penalties for nonpayment of taxes are due.
E.Â
Disqualification. 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, then the tax which would have otherwise been payable
for each tax year shall become due and payable from the property owner
as if no abatement had been granted. The governing body shall notify
the property owner and Tax Collector and the Tax Collector shall within
15 days notify the owner of the property of the amount of taxes due.
With respect to the disposal of property, where it is determined that
the new owner of the property will continue to use the property pursuant
to the conditions which qualified the property, no tax shall be due,
the abatement shall continue and the agreement shall remain in effect.
No later than 15 calendar days prior to transfer of ownership, the
current owner of the property under abatement must notify the Township
Tax Assessor of the transfer. Upon acquisition of the abated property,
the new owner must make application to the Tax Assessor for a continuance
of the tax abatement within 15 calendar days.
[Amended 8-12-2009 by Ord. No. 30-2009]
F.Â
Termination. At the termination of the tax agreement,
a project shall be subject to all applicable real property taxes.
G.Â
The owner
of a tax-abated property, upon receipt of the executed agreement,
must file the agreement with the County Clerk of the County of Atlantic
and provide proof of filing to the Township Tax Assessor. No abatement
shall take effect until the proof of filing is received.
[Added 8-12-2009 by Ord. No. 30-2009]
As used in this chapter, the following terms
shall have the meanings indicated:
The Officer of the Township of Egg Harbor charged with the
duty of assessing real property for the purpose of general taxation.
A structure or part thereof used for the manufacturing, processing
or assembling of material or manufactured projects, or for research,
office, industrial, commercial, retail, recreational, hotel or motel
facilities, or warehousing purposes, or for any combination thereof,
which the governing body determines will tend to maintain or provide
gainful employment within the municipality, assist in the economic
development of the municipality, maintain or increase the tax base
of the municipality and maintain or diversify and expand commerce
within the municipality.
Substantially ready for the intended use for which a building
or structure is constructed.
Under tax abatement, a new commercial or industrial building
of at least 10,000 square feet meeting requirements for tax abatement
which is divided into multiple units of at least 2,500 square feet.
[Added 8-12-2009 by Ord. No. 30-2009]
The owner of a commercial or industrial building or segment
thereof meeting the definition of condominium.
[Added 8-12-2009 by Ord. No. 30-2009]
Under tax abatement, a unit of at least 2,500 square feet
located in a new commercial or industrial building of a minimum size
of 10,000 square feet. Each unit must be separately deeded under a
condominium form of ownership.
[Added 8-12-2009 by Ord. No. 30-2009]
The development of a commercial or industrial structure or
the enlargement of the volume of an existing commercial or industrial
structure by more than 30% but shall not mean the conversion of an
existing building or structure to another use.
The major rehabilitation of a commercial or industrial building
which results in a minimal increase of 25% of the structure assessed
value.
[Added 8-12-2009 by Ord. No. 30-2009]
[Added 8-12-2009 by Ord. No. 30-2009]
An application filing fee of $150 shall be paid by the applicant
at the time of filing the application. The application fee will provide
for the administrative services to be undertaken by the Township Tax
Assessor, and any other Township official, in order to render a determination
on the applicant’s eligibility for tax abatement. The filing
shall over the cost for the application review, determination and
publication fees.
