[HISTORY: Adopted by the Mayor and Council
of the Borough of Stanhope 10-31-2000 by Ord. No. 2000-16.[1] Amendments noted where applicable.]
[1]
Editor's Note: Former Ch. 124, Swimming Pools,
adopted 8-25-1969 by Ord. No. 1969-104, was repealed 7-27-1993 by
Ord. No. 1993-15.
This chapter shall be known as the "Stanhope
Borough Tax Abatement and Tax Exemption Ordinance."
N.J.S.A. 40A:21-1 et seq. enables
municipalities to allow areas in need of rehabilitation to obtain
short-term exemptions and abatements of local property taxes to encourage
the redevelopment and maintenance of properties within the area in
need of rehabilitation. The governing body of the Borough of Stanhope
has determined that the greater interest of the borough is served
by encouraging renovation and rehabilitation of existing commercial
structures and by encouraging construction of new commercial structures
within the area in need of rehabilitation.
The definitions contained in N.J.S.A. 40A:21-3
are incorporated herein by reference.
[Amended 12-20-2005 by Ord. No. 2005-19]
All multiple dwellings, commercial and industrial
structures and all residential structures converted in part or in
full to a commercial structure located within the following defined
area in need of rehabilitation shall be eligible for tax abatement
under this chapter: Tax Map Block No. 11203, Lot Nos. 2, 3, 4, 5,
6, 8 and 9; Block No. 11203, Lot Nos. 11 and 13; Block No. 11206,
Lot Nos. 7, 9, 10 and 11; Block No. 11207, Lot Nos. 8, 9, 10 and 11;
Block No. 11208, Lot Nos. 4, 5 and 6; Block No. 11208, Lot Nos. 2,
3 and 11; Block No. 11304, Lot No. 32; Block No. 11401, Lot Nos. 4,
5, 6, 7, 8, 9, 10 and 11; Block No. 11402, Lot Nos. 1, 31, 33, 34,
35, 37, 39 and 42; Block No. 11601, Lot No. 1; Block No. 11701, Lot
Nos. 2, 3, 5, 6, 7, 8, 10, 20, 22 and 23; Block No. 11702, Lot Nos.
1, 2, 3, 4 and 5.
The governing body may enter into agreements
with developers for tax abatements. All tax agreements shall be applied
for and granted on a project basis in accordance with the provisions
of N.J.S.A. 40A:21-1 et seq. and the provisions of this chapter.
Applicants for tax abatement on projects shall
provide the Borough Council with an application setting forth:
A.
A general description of the 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 Borough Council 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.
Estimates of the cost of completing such project.
F.
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 tax abatement; 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 abatement agreement.
G.
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.
H.
Such other pertinent information as the Borough Council
may require.
Upon approval of an application authorizing
an agreement for tax abatement for a particular project, the Borough
Council shall enter into a written agreement with the applicant for
the abatement of local real property taxes. The agreement shall provide
for the applicant to pay to the municipality, in lieu of property
taxes payments, an amount annually to be computed by either the cost
basis; the gross revenue basis; the tax phase-in basis, as provided
for in N.J.S.A. 40A:21-10. No tax abatement agreement shall be in
effect for a period of more than five years commencing with the first
full tax year after completion of the improvement as provided for
N.J.S.A. 40A:21-11.
A.
All tax agreements entered into by the governing body
shall be in effect for no more than five full tax years next following
the date of completion of the project.
B.
All projects subject to tax agreement, as hereinabove
provided, shall be subject to all applicable federal, state or local
laws and regulations on pollution control, worker safety, discrimination
in employment, housing provisions, zoning, planning and building code
requirements.
C.
That percentage which the payment in lieu of taxes
for a property bears to the property tax which would have been paid
had an exemption and abatement not been granted for the property under
the agreement shall be applied to the valuation of the property to
determine the reduced valuation of the property to be included in
the valuation of the municipality for determining equalization for
county tax apportionment and school aid during the term of the tax
agreements covering the properties, and at the termination of an agreement
for a property the required reduced valuation procedure shall no longer
apply.
D.
Within 30 days after the execution of a tax agreement,
the Borough Clerk shall forward a copy of the agreement to the Director
of the Division of Local Government Services in the Department of
Community Affairs.
If a property becomes ineligible for a tax abatement
or exemption prior to the termination of the tax agreement, the governing
body and Tax Collector shall follow the procedures set forth in N.J.S.A.
40A:21-12.
The Assessor shall determine on October 1 of
the year following the date of completion of an improvement the true
taxable value thereof in accordance with the provisions of N.J.S.A.
40A:21-13.
Any ordinance authorizing a tax agreement pursuant
to the provisions of N.J.S.A. 40A:21-1 et seq. and the provisions
of this chapter may also provide that additional improvements, conversion
or construction completed on a property granted a previous exemption
or abatement shall also be qualified for an exemption and/or abatement
just as if the property had not received a previous exemption or abatement.
In such case, the additional improvement, conversion or construction
shall be considered as separate for the purposes of calculating exemptions
and abatements pursuant to this Act, which shall be calculated by
the Assessor in accordance with the provisions of N.J.S.A. 40A:21-14.
No exemption or abatement shall be granted or
tax agreement entered into pursuant to this chapter with respect to
any property for which property taxes are delinquent or remain unpaid
or for which penalties for nonpayment of taxes are due.
No exemption or abatement shall be granted pursuant
to this chapter except upon written application therefore filed with
and approved by the Assessor. Every application shall be on a form
prescribed by the Director of the Division of Taxation and shall be
filed with the Assessor within 30 days, including Saturdays and Sundays,
following the completion of the improvement, conversion, alteration
or construction. Each application shall be approved and allowed by
the Assessor to the degree that the application is consistent with
the provisions of this section or a tax agreement made pursuant hereto
and meets the requirements imposed by NJ.S.A. 40A:21-16.
The exemption and abatement of real property
taxes provided by this chapter shall apply to property taxes levied
for municipal purposes, school purposes, county government purposes
and for the purposes of funding any other property tax exemptions
or abatements.
The Tax Collector shall include the appropriate
notice in the mailing of annual property tax bills to each owner of
a dwelling located in an area in which exemptions or exemptions and
abatements may be allowed pursuant to this chapter during the first
year following adoption of the chapter.
An annual report, as required by N.J.S.A. 40A:21-21,
shall be filed by the borough with the Director of the Division of
Local Government Services as required by law.
[Added 2-23-2021 by Ord. No. 2021-01]
A retroactive refund of property taxes as set forth in N.J.S.A.
54:4-3.32 shall be limited to the current year of the submission of
a proper claim to the Tax Assessor, as required by N.J.S.A. 54:4-3.30.
