[HISTORY: Adopted by the Township Council
of the Township of Jefferson as indicated in article histories. Amendments
noted where applicable.]
[Adopted 4-15-2009 by Ord. No. 11-09]
The definitions contained in N.J.S.A. 40A:21-3
are incorporated herein by reference as if set forth at length. As
used in this article, words shall have the meanings as so defined
unless a different meaning is expressed.
A structure with two or more different uses, such as, but
not limited to, residential, commercial, or industrial.
The Township Council hereby authorizes the implementation
and utilization of tax exemption and abatement in accordance with
Article VIII, Section I, Paragraph 6, of the New Jersey Constitution
and establishes the eligibility of multiple dwellings, mixed use structures,
commercial and industrial structures for five-year tax exemptions
and abatements as authorized by N.J.S.A. 40A:21-1, in the Township
to the extent any specific redevelopment area shall qualify pursuant
to state law and as set forth herein.
Improvements costing greater than $5,000 to
multiple dwellings are eligible for tax exemption. The Assessor's
full and true value of the improvements shall be regarded as not increasing
the value of the property for a period of five years commencing with
the completion of an improvement 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 existing thereon immediately prior
to the improvement unless there is damage to the multiple dwelling
through action of the elements sufficient to warrant a reduction.
As used in this section, "improvements" shall not be construed to
include an increase in the number of dwelling units nor the reduction
of the total number of dwelling units to less than three.
Improvements costing greater than $5,000 to
mixed use, commercial and industrial structures are eligible for tax
exemption for a period of five years commencing with the completion
of an improvement. The Assessor's full and true value of the improvements
shall be regarded 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 existing thereon
immediately prior to the improvements, unless there is damage to the
structure through action of the elements sufficient to warrant a reduction.
[Amended 9-17-2019 by Ord. No. 19-15]
Construction of new multiple dwellings, mixed-use,
commercial, and industrial structures shall be eligible for tax exemption
and/or tax abatement commencing with completion of the project. Any
such exemption and abatement shall be subject to the owner and the
Township of Jefferson entering into a tax agreement pursuant to the
provisions of N.J.S.A. 40A:21-10.
A.Â
The applicant, property owner, shall furnish to the
Township of Jefferson all the information required by N.J.S.A. 40A:21-9.
In addition, every applicant shall file the application form prescribed
by the Director of the New Jersey Division of Taxation in the Department
of Treasury with the Tax Assessor, as a condition to approval, within
30 days, including Saturdays and Sundays, following the completion
of the improvement. Every application for exemption or exemption and
abatement 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 for which the application
is made qualifies as such, pursuant to the provisions of this article,
and the aforesaid, duly executed tax agreement. The granting of an
exemption and/or abatement 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.
B.Â
No tax exemption shall be granted pursuant to this
article unless approved by resolution of the Township Council on an
individual, or case-by-case, basis after a financial analysis of the
benefit of the tax agreement and review and approval of each application
for compliance with the terms of this article.
C.Â
The tax agreement shall provide that the applicant
shall pay to the Township of Jefferson in lieu of full property tax
payments an amount annually to be computed by one, but in no case
a combination, of the three formulas set forth in N.J.S.A.40A:21-10,
also known as the "cost", "gross revenue," or "tax phase in" basis
of providing for the payment in lieu of taxes. The following are the
three formulae which may be incorporated in said tax agreement.
(1)Â
Cost basis. The tax agreement may provide for the
applicant to pay to the municipality in lieu of full property tax
payments an amount equal to 2% of the cost of the project. For the
purposes of the tax agreement, "the cost of the project" means only
the cost or fair market value of direct labor and all materials 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; which the applicant, property owner,
shall cause to be certified and verified to the governing body by
an independent and qualified architect, following the completion of
the project.
(2)Â
Gross revenue basis. The tax agreement may provide
for the applicant to pay to the Township in lieu of full property
tax payments an amount annually equal to 15% of the annual gross revenues
from the project. For the purposes of the agreement, "annual gross
revenues" means 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 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
those payments shall be computed and deemed to be part of the rent
and shall be included in the annual gross revenue. The tax agreement
shall establish the method of computing the revenues and may establish
a method of arbitration by which either the landlord or tenant may
dispute the amount of payments so included in the annual gross revenue.
(3)Â
Tax phase-in basis. The tax agreement may provide
for the applicant to pay to the Township in lieu of full property
tax payments an amount equal to a percentage of taxes otherwise due,
according to the following schedule:
(a)Â
In the first full year after completion, no
payment in lieu of taxes otherwise due;
(b)Â
In the second full year after completion, an
amount not less than 20% of taxes otherwise due;
(c)Â
In the third full year after completion, an
amount not less than 40% of taxes otherwise due;
(d)Â
In the fourth full year after completion, an
amount not less than 60% of taxes otherwise due;
(e)Â
In the fifth full year after completion, an
amount not less than 80% of taxes otherwise due.
An additional improvement or construction, completed
on a property granted a previous exemption or abatement during the
period in which such previous exemption or abatement is in effect,
shall be qualified for an exemption and/or abatement, just as if such
property had not received a previous exemption or abatement. In such
case, the additional improvement or construction shall be considered
as separate for the purposes of calculating exemptions and abatements,
except that the assessed value of any previous improvement or construction
shall be added to the assessed valuation as it was prior to that improvement
or construction for the purpose of determining the assessed valuation
of the property from which any additional abatement is to be subtracted.
Every application for exemption or abatement
and every exemption and abatement granted shall be subject to all
the provisions of N.J.S.A. 40A:21-1, et seq.
All tax agreements entered into pursuant to
this article shall provide that the applicant is subject to all federal,
state and local laws and ordinances.
If during any tax year prior to the termination
of the tax abatement or exemption agreement, the applicant ceases
to operate or disposes of the property or otherwise fails to meet
the conditions of eligibility, the tax otherwise due if there had
been no abatement or exemption shall become due and payable by the
property owner. The Tax Assessor 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. However, with respect to sale or other disposal of the property
which it is determined that the new owner of the property will continue
to use the property pursuant to the conditions which were set forth
in the tax abatement or exemption agreement, the tax agreement including
any exemption and/or or abatement shall continue.
In the event of default by the applicant, property
owner, including but not limited to the failure to make timely tax
or in lieu of tax payments to the Township of Jefferson, the municipality
shall notify the applicant, in writing, of said default. The applicant
shall have 30 days to cure any default. Following the thirty-day cure
period, the Township shall have the right to proceed against the property
pursuant to the In Rem Tax Foreclosure Act, N.J.S.A. 54:4-1, et seq.
and/or may cancel the financial agreement upon 30 days' notice to
the applicant.
At the termination of a tax abatement or tax
agreement, a project shall be subject to all applicable real property
taxes as provided by state law and local ordinance.
A.Â
No application for tax exemption or abatement shall
be accepted by the Township unless accompanied by full payment of
the required application fee. Such fees shall be based on the estimated
total project cost as set forth in a schedule on file with the Office
of the Township Clerk. The Township shall verify the estimated total
project cost as being reasonable. These fees shall be received as
compensation for the financial analysis and other professional review
and related work performed by the Township's consultants, departments
and agencies. Said fees, or a portion thereof, may be refunded to
the applicant, if such provision is made part of the tax agreement.
B.Â
Application Fee Schedule. The following fees are based
on the estimated cost of the improvement:
|
Cost of Improvement
|
Fee
|
|---|---|
|
$5,000 up to $50,000
|
$250
|
|
$50,001 to $150,000-
|
$500
|
|
$150,001 to $300,000
|
$1,000
|
|
$300,001 to $500,000
|
$1,500
|
|
$500,001 and above
|
$1,750 plus $1,000 for each $500,000 of additional
improvement costs; example, an applicant estimating improvement costs
of $1,000,001, and up to $1,500,000 shall pay a fee of $2,750
|
The Township Clerk shall forward a certified
copy of this ordinance[1] to the State of New Jersey Department of Community Affairs.
[1]
Editor's Note: The words "this ordinance"
refer to Ord. No. 11-09.
No tax abatements and/or exemptions 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 for a period of at least one year, or for any property
not being used in conformance with local, state or federal law or
ordinance.
Appeal of any determination made by the Township
of Jefferson Tax Assessor under the terms of this article shall be
made to the Hudson County Board of Taxation.
Where consistent with the context in which used
in this article, words importing the singular shall include the plural;
words importing the plural shall include the singular; and, words
importing one gender shall include all other genders.
Should any provision of this article be inconsistent
with the provisions of any prior ordinance(s), the inconsistent provisions
of such prior ordinances are hereby repealed, but only to the extent
of the inconsistencies.
In the event that any provision of this article
or the application thereof to any person or circumstance is declared
invalid by a court of competent jurisdiction, such declaration of
invalidity shall not affect any other provision or application of
this article which may be given effect, and, to realize this intent,
the provisions and applications of this article are declared to be
severable.
Captions contained in this article have been
inserted only for the purpose of facilitating reference to the various
sections, and are not intended and shall not be utilized to construe
the intent and meaning of the text of any specific section.
[Adopted 12-13-2023 by Ord. No. 23-22]
It is the purpose of this article to implement the provisions
of the New Jersey Cannabis Regulatory, Enforcement Assistance, and
Marketplace Modernization Act, N.J.S.A. 24:6I-31 et seq., which authorizes
the governing body of a municipality to adopt an ordinance imposing
a tax at a uniform percentage rate not to exceed 2% of the receipts
from each sale by a cannabis cultivator; 2% of the receipts from each
sale by a cannabis manufacturer; 1% of the receipts from each sale
by a cannabis wholesaler; and 2% of the receipts from each sale by
a cannabis retailer, which shall be in addition to any other tax or
fee imposed pursuant to statute or local ordinance or resolution by
any governmental entity upon the cannabis establishment.
Unless otherwise defined herein, as used herein, the Township
adopts by reference the terms and definitions established by Section
40 of Public Law 2021-16, § 3 (N.J.S.A. 24: 6I-33).
A.Â
There is hereby established a local cannabis transfer tax in the
Township of Jefferson which shall be fixed at a uniform percentage
rate of 2% of the receipts from each sale by a cannabis cultivator;
2% of the receipts from each sale by a cannabis manufacturer; 1% of
the receipts from each sale by a cannabis wholesaler; and 2% of the
receipts from each sale by a cannabis retailer for every occupancy
of a cannabis establishment in the Township of Jefferson.
B.Â
In addition to the tax established in Subsection A of this section, a user tax, at the equivalent transfer tax rates, is hereby established on any concurrent license holder, as permitted by N.J.S.A. 24:6I-46, operating more than one cannabis establishment. The user tax shall be imposed on the value of each transfer or use of cannabis or cannabis items not otherwise subject to the transfer tax imposed pursuant to Subsection A of this section from the license holder's establishment that is located in Jefferson to any of the other license holder's establishments, whether located in this Township or another municipality.
C.Â
Any transaction for which the transfer tax or user tax is imposed,
or could be imposed, pursuant to this section, other than those which
generate receipts from the retail sales by cannabis retailers, shall
be exempt from the tax imposed under the Sales and Use Tax Act, N.J.S.A.
54:32B-1 et seq.
The cannabis transfer tax shall be in addition to any other
tax or fee imposed pursuant to statute or local ordinance or resolution
by any governmental entity upon property or cannabis establishments.
A.Â
The transfer tax or user tax imposed by this article shall be collected
or paid and remitted to Township of Jefferson by the cannabis establishment
from the cannabis establishment purchasing or receiving the cannabis
or cannabis item, or from the consumer at the point of sale, on behalf
of the Township by the cannabis retailer selling the cannabis item
to that consumer. The transfer tax or user tax shall be stated, charged,
and shown separately on any sales slip, invoice, receipt, or other
statement or memorandum of the price paid or payable, or equivalent
value of the transfer, for the cannabis or cannabis item.
B.Â
Every cannabis establishment required to collect a transfer tax or
user tax imposed by ordinance pursuant to this section shall be personally
liable for the transfer tax or user tax imposed, collected, or required
to be collected under this section. Any cannabis establishment shall
have the same right with respect to collecting the transfer tax or
user tax from another cannabis establishment or the consumer as if
the transfer tax or user tax was a part of the sale and payable at
the same time, or with respect to nonpayment of the transfer tax or
user tax by the cannabis establishment or consumer, as if the transfer
tax or user tax was a part of the purchase price of the cannabis or
cannabis item, or equivalent value of the transfer of the cannabis
or cannabis item, and payable at the same time; provided, however,
that the Chief Financial Officer of Jefferson Township shall be joined
as a party in any action or proceeding brought to collect the transfer
tax or user tax.
C.Â
No cannabis establishment required to collect a transfer tax or user
tax imposed by this section shall advertise or hold out to any person
or to the public in general, in any manner, directly or indirectly,
that the transfer tax or user tax will not be separately charged and
stated to another cannabis establishment or the consumer, or that
the transfer tax or user tax will be refunded to the cannabis establishment
or the consumer.
D.Â
All revenues collected from a transfer tax or user tax imposed by
ordinance pursuant to this section shall be remitted to the Jefferson
Township Chief Financial Officer on a quarterly basis, payable for
the prior three months' activities and due at the same time as
quarterly dates for the collection of property taxes. The revenues
due on February 1 of each year shall include all transfer taxes or
user taxes collected for the prior year's months of October,
November and December. The revenues due on May 1 of each year shall
include all transfer taxes and user taxes collected for the immediate
prior months of January, February and March. The revenues due on August
1 of each year shall include all transfer taxes and user taxes collected
for the immediate prior months of April, May and June. The revenues
due on November 1 of each year shall include all transfer taxes and
user taxes collected for the immediate prior months of July, August
and September.
A.Â
The Chief Financial Officer shall collect and administer any transfer
tax or user tax imposed to this section.
B.Â
The municipality shall enforce the payment of delinquent taxes or
transfer fees imposed pursuant to this section in the same manner
as provided for municipal real property taxes.
C.Â
In the event that the transfer tax or user tax imposed by this section
is not paid as and when due by a cannabis establishment, the unpaid
balance, and any interest accruing thereon, shall be a lien on the
parcel of real property comprising the cannabis establishment's
premises in the same manner as all other unpaid municipal taxes, fees,
or other charges. The lien shall be superior and paramount to the
interest in the parcel of any owner, lessee, tenant, mortgagee, or
other person, except the lien of municipal taxes, and shall be on
a parity with and deemed equal to the municipal lien on the parcel
for unpaid property taxes due and owing in the same year.
D.Â
A municipality shall file in the office of its Tax Collector a statement
showing the amount and due date of the unpaid balance and identifying
the lot and block number of the parcel of real property that comprises
the delinquent cannabis establishment's premises. The lien shall
be enforced as a municipal lien in the same manner as all other municipal
liens are enforced.
A.Â
Any cannabis establishment that has not made the required tax payment
or has not provided the required financial documents within 10 days
of the due date shall have their municipal license suspended. The
Chief Financial Officer shall immediately report any delinquencies
to the Township Clerk, Township Council, and Business Administrator
once such payment is 10 days late.
B.Â
Any cannabis establishment that remains on suspension for more than
60 days and/or has its municipal cannabis license suspended more than
two times during any calendar year shall have its license revoked
and shall not be considered for renewal of a municipal cannabis license.
