[Adopted 8-7-2014 by Ord.
No. 715]
The purpose of this article is to provide for the exemption
from taxation of the value of improvements to dwellings and grant
abatements for a portion of the assessed value of property subject
to exemption for improvements to dwellings, to the extent allowed
herein and as authorized by the Five-Year Exemption and Abatement
Law (N.J.S.A. 40A:21-1 et seq.).
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 duration of time comprising 365 days, or 366 days when
the included month of February has 29 days, that commences on the
date that an exemption or abatement for a project becomes effective
pursuant to Section 16 of P.L. 1991, c. 441 (N.J.S.A. 40A:21-16).
The officer of a taxing district charged with the duty of
assessing real property for the purpose of general taxation.
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
A property created or recorded as a condominium pursuant
to the Condominium Act, P.L. 1969, c. 257 (N.J.S.A. 46:8B-1 et seq.).
The alteration or renovation of a nonresidential building
or structure, or hotel, motel, motor hotel or guesthouse, in such
manner as to convert the building or structure from its previous use
to use as a dwelling or multiple dwelling.
A housing corporation or association wherein the holder of
a share or membership interest thereof is entitled to possess and
occupy for dwelling purposes a house, apartment, or other unit of
housing owned by the corporation or association, or to purchase a
unit of housing owned by the corporation or association.
A building or part of a building used, to be used or held
for use as a home or residence, including accessory buildings located
on the same premises, together with the land upon which such building
or buildings are erected and which may be necessary for the fair enjoyment
thereof, but shall not mean any building or part of a building defined
as a "multiple dwelling" pursuant to the Hotel and Multiple Dwelling
Law, P.L. 1967, c. 76 (N.J.S.A. 55:13A-1 et seq.). A dwelling shall
include, as they are separately conveyed to individual owners, individual
residences within a cooperative, if purchased separately by the occupants
thereof, and individual residences within a horizontal property regime
or a condominium, but shall not include "general common elements"
or "common elements" of such horizontal property regime or condominium
as defined pursuant to the Horizontal Property Act, P.L. 1963, c.
168 (N.J.S.A. 46:8A-1 et seq.), or the Condominium Act, P.L. 1969,
c. 257 (N.J.S.A. 46:8B-1 et seq.), or of a cooperative, if the residential
units are owned separately.
A dwelling that is more than 20 years old. Properties for
which taxes are delinquent or remain unpaid or for which penalties
for nonpayment of taxes are due are not eligible for the exemption
or abatement.
That portion of the Assessor's full and true value of
any improvement, alteration, or construction not regarded as increasing
the taxable value of a property pursuant to this Act.
A property submitted to a horizontal property regime pursuant
to the Horizontal Property Act, P.L. 1963, c. 168 (N.J.S.A. 46:8A-1
et seq.).
A modernization, rehabilitation, renovation, alteration or
repair which produces a physical change in an existing building or
structure that improves the safety, sanitation, decency or attractiveness
of the building or structure as a place for human habitation and which
does not change its permitted use. In no case shall it include the
repair of fire or other damage to a property for which payment of
a claim was received by any person from an insurance company at any
time during the three-year period immediately preceding the filing
of an application pursuant to this act.
A building or structure meeting the definition of "multiple
dwelling" set forth in the Hotel and Multiple Dwelling Law, P.L. 1967,
c. 76 (N.J.S.A. 55:13A-1 et seq.) and means for the purpose of improvement
or construction the "general common elements" and "common elements"
of a condominium, a cooperative, or a horizontal property regime.
A.
Upon application timely made and approved as provided in this article,
the Assessor is authorized to grant the exemptions and abatements
described herein for improvements made to eligible dwellings.
B.
In determining the value of real property subject to the exemption, the Assessor shall regard the first $25,000 in Assessor's full and true value of improvements for each eligible dwelling unit primarily and directly affected by the improvement 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 an abatement is granted pursuant to Subsection C of this section or there is damage to the dwelling through action of the elements sufficient to warrant a reduction. No exemption may be granted to a property for improvement to a dwelling that is 20 years old or less or which is otherwise rendered ineligible pursuant to § 360-22.
C.
In addition to the exemption for improvements authorized pursuant to Subsection B above, the Assessor is also authorized to abate 30% of the assessed value of property receiving the exemption pursuant to Subsection B above, as it existed immediately prior to the improvement. The abatement shall be for a total of up to five years, but the annual amount of the abatement granted to any single property shall not exceed 30% of the annual amount of the exemption granted under this article.
The Assessor shall determine, on October 1 of the year following
the date of the completion of an improvement or conversion, the true
taxable value thereof. The amount of tax to be paid for the tax year
in which the improvement is completed shall be based on the assessed
valuation of the property for the current tax year, minus the amount
of the abatement, if any, allowed pursuant to this article and prorated,
plus any portion of the assessed valuation of the improvement not
allowed an exemption pursuant to this article, also prorated. The
property shall continue to be treated in the appropriate manner for
each of the four tax years subsequent to the original determination
by the Assessor and shall be prorated for the final tax year in which
the exemption and abatement expires.
An additional improvement, completed on a property granted a
previous exemption and abatement pursuant to this article during the
period in which such previous exemption or abatement is in effect,
shall be qualified for an exemption and abatement, just as if such
property had not received a previous exemption or abatement. In such
case, the additional improvement shall be considered as separate for
the purposes of calculating exemptions and abatements pursuant to
this article, except that the assessed value of any previous improvement
shall be added to the assessed valuation as it was prior to that improvement
for the purpose of determining the assessed valuation of the property
from which any additional abatement is to be subtracted.
No exemption or abatement shall be granted pursuant to this
article 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
article except upon written application therefor timely filed with
and approved by the Assessor. Every application shall be on a form
prescribed by the Director of the Division of Taxation in the Department
of the Treasury, and provided for the use of claimants by the Upper
Deerfield Township Committee, and shall be filed with the Assessor
within 30 days, including Saturdays and Sundays, following the completion
of the improvement. Every application for exemption and abatement
that is filed within the time specified 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 an improvement pursuant
to the provisions of this article. The granting of an exemption, or
exemption and abatement, shall relate back to, and take effect as
of, the date of completion of the improvement for which the exemption,
or exemption and abatement, is granted and shall continue for five
annual periods from that date. The grant of the exemption, or exemption
and abatement, shall be recorded and made a permanent part of the
official tax records of Upper Deerfield Township, which record shall
contain a notice of the termination date thereof.
