[Adopted 7-17-1996 by Ord. No. 1996-14
(Ch. 176, Art. III, of the 1977 Code)]
As used in this article, the following terms shall have the meanings
indicated:
That portion of the assessed value of a property as it existed prior
to construction, improvement or conversion of a building or structure thereon,
which is exempted from taxation pursuant to this article.
A portion or all of a municipality which has been determined to be
an area in need of rehabilitation or redevelopment pursuant to the Local Redevelopment
and Housing Law, P.L. 1992, c. 79 (N.J.S.A. 40A:12A-1 et seq.), a blighted
area as determined pursuant to the Blighted Areas Act, P.L. 1949, c. 187 (N.J.S.A.
40:55-21.1 et seq.), or which has been determined to be in need of rehabilitation
pursuant to P.L. 1975, c. 104 (N.J.S.A. 54:4-3.72 et seq.), P.L. 1977, c.
12 (N.J.S.A. 54:4-3.95 et seq.) or P.L. 1979, c. 233 (N.J.S.A. 54:4-3. 121
et seq.).[1]
The officer of a taxing district charged with the duty of assessing
real property for the purpose of general taxation.
A structure or part thereof used for manufacturing, processing or
assembling of material or manufactured products, as for research, office,
industrial, commercial, retail, recreation, 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, maintain or increase the tax base of the municipality, assist
in the economic development of the municipality and maintain or diversify
and expand commerce within the municipality. It shall not include any structure
or part thereof used or to be used by any business located from another qualifying
municipality.
Substantially ready for the intended use for which a building or
structure is constructed, improved or converted.
The provision of a commercial or industrial structure or 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 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%.
The construction of a new facility or facilities to be used or occupied
by any person for the manufacturing, processing or assembly of material or
manufactured products for research, office, industrial, commercial, retail,
recreation or hotel or motel facilities or warehousing, or for any combination
thereof, and which the governing body determines will tend to maintain or
provide gainful employment within the municipality, maintain or increase the
tax base of the municipality and maintain or diversify and expand commerce
within the municipality. Project shall also mean an enlargement of the volume
of an existing structure by more than 30%. Project shall not include any facility
or facilities which are the result of a removal of a facility from any other
qualifying municipality.
[1]
Editor's Note: The statutes cited have been repealed as follows: N.J.S.A.
40:55-21.1 et seq. by Chapter 79 of the Laws of 1992 (See now N.J.S.A. 40A:12A-1
et seq.); N.J.S.A. 54:4-3.72 et seq.; 54:4-3.95 et seq.; 54:4-3.121 et seq.
by Chapter 441 of the Laws of 1991 (See now N.J.S.A. 40A:21-1 et seq.).
Exemptions may be granted for improvements to commercial or industrial
structures located in an area designated as an area in need of rehabilitation
as the same is defined pursuant to N.J.S.A. 40A:21-3, after applications are
submitted to the Borough Council for its review, evaluation and approval.
A.
The Assessor's full and true value of improvements to
a property granted approval for exemption pursuant to this article, shall
not be assessed as increasing the value of such property for a period of five
years after the completion of such improvement(s), notwithstanding that the
value of the property to which the improvements are made is increased thereby.
B.
In no event shall the assessment on the property granted
the exemption be less than the assessment existing immediately prior to the
construction of the improvements, unless the structures on the property has
incurred damage through the action of the elements sufficient to warrant reduction
or the prior assessment is contested in accordance with the remedies provided
by law.
No exemption authorized pursuant to the provisions of this article shall
be granted or allowed except upon written application therefor filed with
and approved by the Assessor of the taxing district wherein the improvement
is made. Every such application shall be on a form prescribed by the Director
of the Division of Local Government Services and provided for the use of claimants
by the Assessor and shall be filed with the Assessor not later than 60 days,
including Saturdays and Sundays, following the completion of improvements.
Every properly completed application for exemption of one or more improvements
which is filed within the time prescribed shall be approved by the Assessor
who shall submit his recommendation to the Borough Council. If approved by
the Borough Council, the granting of any such exemption shall be recorded
and made a permanent part of the official tax records of the Borough, which
record shall contain a notice of the termination date of the exemption and
the application of such exemption in the event of a transfer of title to the
property which is the subject of such exemption.
Applicants for tax abatement, as provided in this article, shall provide
an application with the Borough Clerk setting forth:
A.
A general description of a project for which abatement
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 abatement
on the project and a description of the benefits to be realized by the applicant
if tax abatement 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 tax abatement.
(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 abatement agreement.
H.
A description of any lease agreement between the applicant
and proposed users of the project and a history and description of the users'
business.
I.
Such other pertinent information as the Assessor may
require.
The Borough Council may enter into a written agreement with the applicant
for the abatement of local real property taxes as to premises located within
an area designated as in need of rehabilitation as defined pursuant to N.J.S.A.
40A:21-3. The agreement shall provide for the applicant to pay to the Borough,
in lieu of full property tax payments, an amount annually to be computed by
one, but in no case a combination of the following formulas:
A.
Cost basis. The applicant shall pay to the Borough of
South River an amount annually equal to 2% of the cost of the project. For
purposes of this agreement, "the cost of the project" shall mean the cost
or fair market value of direct labor and all material 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, provided that the
applicant shall cause such costs to be certified to the Borough by an independent
and qualified architect following the completion of the project.
B.
Gross revenue basis. The applicant shall pay to the Borough
an amount annually equal to 15% of the annual gross revenues from the project.
For the purposes of the agreement, "annual gross revenue" shall mean 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 the
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
such payments shall be compiled and deemed to be part of the rent and shall
be included in the annual gross revenue. The tax abatement agreement shall
establish the method of computing such revenues and may establish a method
of arbitration by which either the landlord or tenant may dispute the amount
of such payments so included in the annual gross revenue.
C.
Tax phase-in basis. The applicant shall pay to the Borough
of South River an amount equal to a percentage of taxes otherwise due, according
to the following schedule:
(1)
In the first full calendar year after completion, no
payment in lieu of taxes otherwise due.
(2)
In the second calendar year, an amount not less than
20% of taxes otherwise due.
(3)
In the third calendar year, an amount not less than 40%
of taxes otherwise due.
(4)
In the fourth calendar year, an amount not less than
60% of taxes otherwise due.
(5)
In the fifth calendar year, an amount not less than 80%
of taxes otherwise due.
A.
All tax abatements entered into by the Borough pursuant
to the terms of this article shall be in effect for a period of not more than
five years next following the date of completion of the project.
B.
The Borough may require as part of a tax abatement an
agreement by the developer that said developer shall not appeal the tax assessment
for a period of up to five years next following the expiration of the tax
abatement.
All projects subject to agreements for tax abatement as provided herein
shall be subject to all applicable federal, state and local laws and regulation
on pollution control, worker safety, discrimination in employment, zoning,
planning and Building Code requirements and other appropriate law.
A.
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
such property owner as if no exemption and abatement had been granted. The
Borough Council shall notify the property owner and the Tax Collector forthwith,
and the Tax Collector shall, within 15 days thereof, notify the owner of the
property of the amount of taxes due.
B.
However, with respect to the disposal of the 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 for
abatement, no tax shall be due, the exemption and the abatement shall remain
in effect.
At the termination of an agreement for tax abatement authorized pursuant
to this article, a project shall be subject to all applicable real property
taxes as provided by applicable law and/or ordinances of the Borough, provided
that nothing herein shall be deemed to prohibit a project, at the termination
of an agreement for tax abatement, from qualifying for and receiving the full
benefits of any other tax preferences provided by law.
