[HISTORY: Adopted by the Mayor and Council of the Borough
of Fanwood as indicated in article histories. Amendments noted where
applicable.]
[Adopted 2-2-2015 by Ord.
No. 15-01R]
This article shall be known as the "Borough of Fanwood 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 Fanwood has determined that the greater interest
of the Borough is served by encouraging renovation and rehabilitation
of existing commercial and industrial structures and by encouraging
construction of new commercial and industrial structures within the
area in need of rehabilitation defined herein.
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.
[Amended 2-7-2017 by Ord.
No. 17-01R]
All commercial and industrial structures located within the
following defined area in need of rehabilitation shall be eligible
for tax abatement under this article:
Tax Block 55, Lots 1, 2, 4, 5.01, 7.01, 8, 9.01, 10, 11, 11.01,
12, 13, 14, 15, 15.01, 16, 17, 18, 19
|
Block 56, Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
|
Block No. 57, Lot 1
|
Block 60, Lots 1, 2, 3, 4
|
Block 61, Lots 2.01, 2.02, 3, 4
|
Block 62, Lot 2
|
Block 65, Lots 1, 2, 3, 11, 12, 14
|
Block 66, Lots 1, 2, 3, 6, 9, 10, 11, 14
|
Block 69, Lots 1, 5, 6
|
Block 91, Lots 1.01, 3.01, 6, 26
|
The Borough hereby authorizes the utilization of tax exemption
and abatement in accordance with Article VIII, Section I, Paragraph
6, of the New Jersey Constitution and establishes the eligibility
for five-year tax exemptions and abatements of improved and newly
constructed commercial and industrial structures in the rehabilitation
area as authorized by N.J.S.A. 40A:21-1 et seq. Any such exemption
and/or abatement shall be subject to the owner and Borough entering
into a tax agreement as provided by N.J.S.A. 40A:21-10. 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 article.
A. All applicants for tax abatement shall file a written application
with the Tax Assessor containing all of the following:
(1) A general description of the project for which abatement is sought;
(2) A legal description of all real estate necessary for the project;
(3) Plans, drawings and other documents as may be required by the Borough
Council to demonstrate the structure and design of the project;
(4) 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;
(5) A statement of the reasons for seeking tax exemption and abatement
on the project, and a description of the benefits to be realized by
the applicant if a tax agreement is granted;
(6) Estimates of the cost of completing such project;
(7) A statement showing:
(a)
The real property taxes currently being assessed at the project
site;
(b)
Estimated tax payments that would be made annually by the applicant
on the project during the period of the tax abatement;
(c)
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;
(8) A description of any lease agreements between the applicant and proposed
users of the project and a history and description of the users'
businesses;
(9) A completed application form prescribed by the Director of the New
Jersey Division of Taxation in the Department of the Treasury; and
(10)
Such other pertinent information as the governing body may require.
B. All applications must be filed with the Tax Assessor within 30 days,
including Saturdays and Sundays, following the completion of the improvement.
C. Each application shall be approved and allowed by the Tax Assessor
to the degree that the application is consistent with the provisions
of this article or a tax agreement duly made pursuant to this article
and meets the requirements of N.J.S.A. 40A:21-1 et seq.
A. No tax agreement shall be granted unless such tax agreement is approved
by the Borough Council on an individual basis after review, evaluation
and approval of such tax agreement for compliance with the terms of
this article and the underlying statute, rules and regulations.
B. 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 in
an amount annually to be computed by either the cost basis, the gross
revenue basis or the tax phase-in basis, as provided for in N.J.S.A.
40A:21-10.
C. 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.
D. All tax agreements shall provide that the applicant is subject to
all federal, state and local laws and regulations.
E. Within 30 days after the execution of any such 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.
F. 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 termination date thereof.
In the event of default by the applicant, including but not
limited to the failure to make timely tax or in-lieu payments to the
Borough, the Tax Assessor 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 Borough 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 tax agreement
upon 30 days' notice to the applicant.
Every application for exemption or abatement and every exemption
and abatement granted shall be subject to all of the provisions of
N.J.S.A. 40A:21-1 et seq., and all rules and regulations issued thereunder.
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 valuation 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.
No exemption or abatement shall be granted, or tax agreement
entered into with respect to any property for which taxes or any other
municipal charges are delinquent or remain unpaid or for which penalties
for nonpayment are due, or for any property not being used in conformance
with local, state or federal ordinance, regulation or statute.
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, then the tax which would have otherwise been payable
for each tax year shall become due and payable by the property owner
as if no exemption or abatement had been granted. The Tax Assessor
shall promptly notify the property owner and Tax Collector, and, within
15 days thereof, the Tax Collector shall notify the property owner
of the amount of taxes due. However, with respect to the sale or other
disposal of the property, where it is determined that the new owner
of the property will continue to use the property pursuant to the
conditions which qualified the property, no tax shall be due, the
exemption and the abatement shall continue, and the agreement shall
remain in effect.
At the termination of a tax abatement or exemption agreement,
a project shall be subject to all applicable real property taxes as
provided by state law and local ordinance.
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 article during the first year following adoption
of this article.
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 in the Department of Community Affairs and the Director of
the Division of Taxation in the Department of the Treasury.
The Borough Clerk is hereby authorized and directed to forward
a certified copy of this article to the State of New Jersey Department
of Community Affairs.
Appeal of any determination made by the Borough under the terms
of this article shall be made to the Union County Board of Taxation,
unless a direct appeal to the New Jersey Tax Court is authorized by
law.