[HISTORY: Adopted by the Mayor and Council of the Borough of Roselle as indicated in article histories. Amendments noted where applicable.]
[Adopted 10-12-1970 by Ord. No. 1250]
Editor's Note: The provisions of this chapter are derived from Article V, Chapter 2 of the Revised Ordinances of the Borough of Roselle adopted 10-12-1970 by Ord. No. 1250.
No interest shall be charged by the Borough of Roselle for the late payment of any installment of taxes or assessments, provided such payment is made within ten (10) days after the date on which the same became payable. Any installment payment received after the expiration of said grace period shall bear interest from the due date.
[Adopted 9-15-2004 by Ord. No. 2215]
Mayor and Council hereby authorizes the utilization of tax exemption in accordance with Article VIII, Section 1, Paragraph 6 of the New Jersey Constitution and establishes the eligibility of residential and multiple dwellings and commercial and industrial structures for five-year tax exemptions to the maximum degree permitted by N.J.S.A. 40A:21-1 et seq. throughout the entire municipality.
Improvements to dwellings more than 20 years old are eligible for tax exemption, if approved, the Borough, in determining value, may regard the first $25,000 in the Assessor's full and true value of improvements for each dwelling unit primarily and directly affected by the improvements as not increasing the value of the property for a period of five years, notwithstanding that the value of the property to which the improvements are made is increased thereby. During the exemption period, the assessment on the property shall not be less than the assessment thereon existing immediately prior to the improvements, unless there is a change to the dwellings through action of the elements sufficient to warrant a reduction.
Construction of new dwellings or the conversion of other buildings and structures, including unutilized public buildings, to dwelling use are eligible for tax exemption for a period of five years. If approved, the Borough, in determining value, shall regard 30% of the Assessor's full and true value of the dwelling constructed or conversion alterations made as not increasing the value of the property. This exemption is to be granted notwithstanding that the value of the property upon which the construction or conversion occurs is increased thereby.
Improvements to multiple dwellings or conversions of other buildings and structures, including unutilized public buildings, to multiple dwelling use are eligible for tax exemption. If approved, the Borough, in determining value, shall regard up to the Assessor's full and true value of the improvements or conversion alterations as not increasing the value of the property for a period of five years. This exemption is to be granted notwithstanding that the value of the property to which the improvements or conversion alterations are made is increased thereby. During the exemption period, the assessment on the property shall not be less than the assessment existing thereon immediately prior to the improvement or conversion alteration, unless there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction.
Improvements to commercial and industrial structures are eligible for tax exemption for a period of five years. If approved, the Borough, in determining value, shall regard the Assessor's full and true value of the improvements as not increasing the value of the property, notwithstanding that the value of the property to which the improvement is made is increased thereby. During the exemption period, the assessment on the property shall not be less than the assessment thereon existing immediately prior to the improvements, unless there is damage to the structure through action of the elements sufficient to warrant a reduction.
New construction of commercial and industrial structures and multiple dwellings are eligible for tax exemption. The exemption shall be granted for a period of five years. The owner shall enter into a written agreement with the Borough to pay a tax on the improvement in an amount equal to a percentage of taxes otherwise due according to the following schedule:
In the first full tax year after completion, no payment in lieu of taxes otherwise due;
In the second tax year, an amount not less than 20% of taxes otherwise due;
In the third tax year, an amount not less than 40% of taxes otherwise due;
In the fourth tax year, an amount not less than 60% of taxes otherwise due; and
In the fifth tax year, an amount not less than 80% of taxes otherwise due.
The agreement shall provide that the tax shall be billed and collected in the same manner as any conventional taxes, and any arrearages shall accrue that rate of interest charged for delinquent real estate taxes and shall be subject to foreclosure.
The Borough Clerk shall forward a copy of all executed exemption agreements to the Director of the Division of Local Government Services in the Department of Community Affairs within 30 days of the date of execution.
In the event a property owner subject to a tax agreement ceases to operate or disposes of the property or fails to meet the condition for qualifying for the exemption, the local property taxes due for all of the prior years subject to exemption and for the current year shall be payable as if no exemption had been granted. Mayor and Council shall notify the property owner and Tax Collector. The Tax Collector shall forthwith notify the property owner with 15 days of the date of disqualification of the amount of taxes due. In the event the subject property has been transferred to a new owner and it is determined that the new owner will continue to use the property pursuant to the qualifying conditions, no tax shall be due, the exemption shall continue and the agreement shall remain in effect.
Applicants for tax exemption shall provide the governing body of the Borough with an application setting forth the following information:
A general description of a project for which exemption is sought.
A legal description of all real estate necessary for the project.
Plans, drawings and other documents as may be required by the governing body to demonstrate the structure and design of the project.
A description of the number, classes and type of employees to be employed at the project site within two years of completion of the project.
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.
Estimates of the cost of completing such project, together with the expected method or plan of financing the improvement.
A construction time schedule and projected time schedule.
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.
If the project is a commercial or industrial structure, a description of any lease agreement between the applicant and proposed users of the project and a history and description of the users' businesses.
If the project is a multiple dwelling, a description of the number and type of dwellings units to be provided, a description of the common elements or general common elements, and a statement of the proposed initial rentals or sales prices of the dwelling units according to type and of any rental lease or resale restrictions to apply to the dwellings units respecting low- or moderate-income housing.
A disclosure statement of the interests of all parties, including subsidiary companies, in the property project.
The original signature of the owner as notarized, accompanied by a corporate resolution, if appropriate.
Such other pertinent information as the governing body may require on a case-by-case basis.
In addition, every applicant shall file the application form prescribed by the Director of the New Jersey Division of Taxation in the Department of the Treasury, with the Tax Assessor, as a condition to approval, within 30 days, including Saturdays and Sundays, following the completion of the improvement, conversion or construction. Every application or exemption so filed shall be approved and allowed by the Assessor to the degree that the application is consistent with the provisions of this article, provided that the improvement, conversion alteration or construction for which the application is made qualifies as such, pursuant to the provision of this act and the tax agreement, if any. The granting of an exemption and tax agreement, if appropriate, shall be recorded and made a permanent part of the official tax records of the taxing district, which record shall contain a notice of the termination date thereof.
No tax exemption shall be granted unless approved by ordinance of the Mayor and Council on an individual basis after review, evaluation and approval of each application.
An additional improvement, conversion or construction completed to a property already granted an exemption during the period in which the exemption is in effect shall be eligible for an additional exemption, just as if such property had not received a previous exemption. The additional improvement, conversion or construction shall be considered as separate for purposes of calculating the exemption, except that the assessed value of any previous improvement, conversion or construction shall be added to the assessed valuation as it was prior to that improvement, conversion or construction, for the purpose of determining the assessed value of the property from which any additional exemption is to be subtracted.
No exceptions shall be granted for any property for which property taxes or any other municipal charges are delinquent or remain unpaid, or for which penalties for nonpayment are due.
The Tax Collector shall include an appropriate notice in the mailing of the annual property tax bills to each owner of a dwelling located in an area in which exemptions may be allowed under this article.
The Tax Assessor on behalf of Mayor and Council shall report, on or before October 1 of each year, to the Director of the Division of Local Government Services in the Department of Community Affairs and to the Director of the Division of Taxation in the Department of the Treasury the total amount of real property taxes exempted within the Borough in the current tax year for each of the following:
Improvements of dwellings;
Construction of dwellings;
Improvements and conversions of multiple dwellings;
Improvements of commercial or industrial structures;
Construction of multiple dwellings under tax agreements; and
Construction of commercial or industrial structures under tax agreements.
In the case of Subsection A(5) and (6) above, the report shall state instead the total amount of payments made in lieu of taxes according to each formula utilized by the municipality, and the difference between that total amount and the total amount of real property taxes which would have been paid on the project had the tax agreement not been in effect, for the current next year.
Mayor and Council hereby declare that while specific ordinance approval may not be needed for the adoption of long-term tax exemptions pursuant to N.J.S.A. 40A:20-1 et seq., the Mayor shall present to Council for Council approval all requests pursuant to N.J.S.A. 40A:20-1 et seq. which the Mayor and/or Roselle Development Agency deem appropriate.