Township of Pemberton, NJ Taxation

The Township hereby authorizes the utilization of tax exemptions in accordance with Article VIII, Section I, Paragraph 6, of the New Jersey Constitution and establishes the eligibility of residential and multiple dwellings, 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 Township.

Words and phrases used in this article shall have the meanings set forth in N.J.S.A. 40A:21-3.

§ 162-2 Projects eligible for tax exemption.

Improvements to dwellings more than 20 years old. Improvements to dwellings more than 20 years old are eligible for tax exemption for a period of five years. If approved, the Township, in determining the value of the real estate, shall regard the first $25,000 of 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 damage to the dwelling through the action of the elements sufficient to warrant a reduction.

Construction of new dwelling or conversions to dwelling use. Construction of new dwellings or the conversions of the buildings and structures to dwelling use, including unutilized public buildings, are eligible for tax exemption for a period of five years. If approved, the Township, 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 for a total up to five years, notwithstanding that the value of the property upon which the construction or conversion occurs is increased thereby.

Improvement to multiple dwellings or conversions to multiple dwelling use. Improvements to multiple dwellings or conversion of other buildings and structures to multiple dwelling use, including unused public buildings, are eligible for tax exemption for a period of five years. If approved, the Township, 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, 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 thereon existing immediately prior to the improvements, unless there is damage to the dwellings sufficient to warrant a reduction.

Improvements to commercial and industrial structures. Improvements to commercial and industrial structures are eligible for tax exemption for a period of five years. If approved, the Township, in determining value, shall regard up to 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 improvements 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 dwellings sufficient to warrant a reduction.

New commercial or industrial structures and multiple dwellings and new dwellings and conversions in Urban Enterprise Zone. New construction of commercial and industrial structures and multiple dwellings and new dwellings or conversions to dwelling use in an Urban Enterprise Zone are eligible for tax exemption for a period of five years. The owner shall enter into a written agreement with the Township to pay a tax on the improvement in an amount equal to a percentage of taxes otherwise due according to the following schedule:

(1)

In the first full tax year after completion, no payment in lieu of taxes otherwise due.

(2)

In the second full tax year, an amount not less than 20% of taxes otherwise due.

(3)

In the third full tax year, an amount not less than 40% of taxes otherwise due.

(4)

In the fourth tax year, an amount not less than 60% of taxes otherwise due.

(5)

In the fifth full tax year, an amount not less than 80% of taxes otherwise due.

§ 162-3 Filing of applications.

Applications for tax exemption shall be filed with the Tax Assessor. Every application shall be on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury and shall be filed with the Assessor within 30 days, including Saturdays and Sundays, following the completion of the improvement, conversion alteration or construction. For new construction of industrial or commercial structures or multiple dwellings, the applicant shall provide the following information:

A general description of the 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 Township Council 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.

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.

(3)

Estimated tax payments that would be made by the applicant on the project during the first full year following termination of the agreement.

If the project is a commercial or industrial structure, a description of any leases agreements between the applicant and proposed users of the project, and a history and description of the users' business.

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 general common elements, and a statement of the proposed initial rentals or sales prices of the dwelling units according to type and any rental lease or resale restrictions to apply to the dwellings' units with respect to low- and moderate-income housing.

Such other pertinent information as the Township Council may require.

§ 162-3.1 Approval of applications.

Every application for exemption which is filed within the time specified shall be approved and allowed by the Assessor within 60 days of the date filed, to the degree that the applications consistent with the provisions of this article and the tax agreement, provided that the improvement, conversion alteration or construction for which the applications made qualifies as an improvement, a conversion alteration or construction, pursuant to the provisions of N.J.S.A. 40A:21-1 et seq., and the tax agreement, if any. The granting of an exemption or tax agreement 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.

§ 162-3.2 Exemption applicable to property taxes levied for all purposes.

The exemption of real property taxes provided by the Township pursuant to this article shall apply to property taxes levied for municipal, school and county government purposes and for the purpose of funding any other property tax exemptions and abatements.

§ 162-3.3 Tax exemptions and agreements for particular projects.

The Tax Assessor is authorized to grant exemptions and enter into tax agreements for newly constructed and improved dwellings, other than multiple dwellings, without review and approval by the Township Council.

The Tax Assessor is authorized to grant exemptions and enter into tax agreements for multiple dwellings, commercial and industrial structures without review and approval by the Township Council if the value of the improvements is determined to be less than $25,000. If the value of the improvements equals or exceeds $25,000, then tax exemptions and tax agreements shall be granted only by resolution of the Township Council.

§ 162-3.4 Duration of tax agreements.

All tax agreements entered into pursuant to this article shall be in effect for no more than five full tax years next following the date of completion of the project.

§ 162-3.5 Conformance with statutory and regulatory requirements.

All projects subject to tax agreement as provided herein shall be subject to all applicable federal, state and local laws and regulations on pollution control, worker safety, discrimination in employment, housing provision, zoning, planning and building code requirements.

§ 162-3.6 Copy of agreement to Division of Local Government Services.

Within 30 days after the execution of a tax agreement, the Tax Assessor shall forward a copy of the agreement to the Director of the Division of Local Government Services in the Department of Community Affairs.

§ 162-3.7 Administration of agreement.

The Tax Collector shall administer the terms of the agreement during the period of the exemption as follows. All tax exemption agreements shall provide that the tax shall be billed and collected in the same manner as any conventional taxes and any arrearages shall accrue at that rate of interest charged for delinquent real estate taxes and shall likewise be subject to foreclosure for nonpayment. Further, if any payments due under a tax exemption agreement shall be delinquent for a period of 30 days, the tax exemption shall terminate as of the date such payments first became delinquent.

§ 162-3.8 Prohibition against added assessment.

The added assessment provisions of N.J.S.A. 54:4-63.3 and the omitted assessment provisions of N.J.S.A. 54:4-63.20 and 54:3-33 shall not be applicable to any property for which the owner has been granted a tax exemption under this article.

§ 162-3.9 Termination of agreement.

If during any tax year prior to the termination of the tax agreement, the property owner ceases to operate, disposes of the property or fails to meet the conditions for qualifying, then the tax which would otherwise have been payable for each tax year shall become due and payable from the property owner as if no exemption had been granted. The Tax Assessor, on behalf of the Township Council, shall notify the property owner and the Tax Collector forthwith, and the Tax Collector shall notify the property owner within 15 days of the date of disqualification of the amount of taxes due. However, 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 qualifying conditions, no tax shall be due, the exemption shall continue, and the agreement shall remain in effect.

At the termination of a tax agreement, a project shall be subject to all applicable real property taxes as provided by state law and regulation and local ordinances, but nothing herein shall prohibit a project, at the termination of an agreement, from qualifying for and receiving the benefits of any other tax preference provided by law.

§ 162-4 Additional improvements eligible for tax exemption.

An additional improvement, conversion alteration 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 alteration or construction shall be considered as separate for purposes of calculating the exemption, except that the assessed value of any previous improvement, conversion alteration or construction shall be added to the assessed valuation as it was prior to that improvement, conversion alteration or construction, for the purpose determining the assessed value of the property from which any additional exemption is to be subtracted.

§ 162-4.1 Ineligibility.

No exemption shall be granted for any property for which property taxes or other municipal charges are delinquent or remain unpaid, or for which penalties for nonpayment are due.

§ 162-4.2 Notice.

For each year that this tax exemption program is being offered, 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 exemption may be allowed under this article.

§ 162-4.3 Report of real property taxes.

The Tax Assessor, on behalf of the Township, 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 Township in the current tax year for each of the following:

(1)

Improvement of dwellings.

(2)

Construction of dwellings.

(3)

Improvements and conversions of multiple dwellings.

(4)

Improvements of commercial or industrial structures.

(5)

Construction of multiple dwellings under tax agreements.

(6)

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 Township and the difference between that total amount and the total amount or real property taxes which would have been paid on the project had the tax agreement not been in effect for the current year.

§ 162-4.4 Inapplicability to other exemption or abatement programs.

Approved applications for projects under this five-year tax exemption program shall not be eligible for other tax abatements or exemptions. Further, any project that has been granted a long-term tax exemption and/or has negotiated a payment in lieu of taxes (PILOT) agreement shall also be ineligible to participate in this program.

§ 162-4.5 Program expiration.

This program shall expire on June 30, 2026. Any application for an eligible project that is received prior to July 1, 2026, may be approved by the Tax Assessor or, where applicable, Township Council and shall be entitled to the full five-year tax exemption subject to the provisions of this article.

Article II Hotel and Motel Occupancy Tax

[Adopted 12-18-2003 by Ord. No. 28-2003]

§ 162-5 Tax established.

There is hereby established a hotel and motel room occupancy tax in the Township of Pemberton which shall be fixed at the uniform percentage rate of 1% on charges of rent for every occupancy of a hotel or motel room in the Township on or after September 1, 2003 but before July 1, 2004. On or after July 1, 2004, said occupancy tax shall be fixed at 3%. Said tax shall apply to all rooms in a hotel or motel subject to taxation pursuant to N.J.S.A. 54:32B (sales tax).

§ 162-6 Tax in addition to other taxes or fees.

The hotel and motel room occupancy tax shall be in addition to any other tax or fee imposed pursuant to statute or ordinance or resolution by any governmental entity upon the occupancy of a hotel or motel room.

§ 162-7 Statutory requirements.

In accordance with the requirements of P.L. 2003, c.114:

All taxes imposed by this article shall be paid by the purchaser.

A vendor shall not assume or absorb any tax imposed by this article.

A vendor shall not in any manner, advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the tax will be assumed or absorbed by the vendor, that the tax will not be separately charged and stated to the customer, or that the tax will be refunded to the customer.

Each assumption or absorption by a vendor of the tax shall be deemed a separate offense and each representation or advertisement by a vendor for each day that the representation or advertisement continues shall be deemed a separate offense.

The penalty for violation of the foregoing provisions shall be $200 for each offense.

§ 162-8 Collection of tax.

The tax imposed by this article shall be collected on behalf of the Township by the person collecting the rent from the hotel or motel customer. Each person required to collect the tax herein imposed shall be personally liable for the tax imposed, collected or required to be collected hereunder. Any such person shall have the same right in respect to collecting the tax from a customer as if the tax were a part of the rent and payable at the same time; provided that the Chief Financial Officer of the Township shall be joined as a party in any action or proceeding brought to collect the tax.