[Adopted 3-27-2007 by Ord. No. 3675[1]]
[1]
Editor's Note: This ordinance also repealed former Art. I, Real Property Tax Abatement, adopted 4-12-1979 by Ord. No. 939, as amended.
A. 
There is hereby adopted and provided in this municipality a tax abatement program pursuant to P.L. 1991, c. 441, as same may be amended from time to time.[1] This program shall apply throughout the municipality and provide for the abatement from real property taxation of the aggregate first $25,000 in the Assessor's full and true value of home improvements for each dwelling unit primarily and directly affected by a home improvement in any owner-occupied portion of a residential dwelling unit more than 20 years old as not increasing the value of such property for a period of five years, notwithstanding that the value of the dwelling to which such improvements are made is increased thereby; provided, however, that during said period, the assessment on said dwelling shall in no case, except that of damage through action of the elements sufficient to warrant a reduction, be less than the assessment thereon existing immediately prior to such home improvements, and provided further that the aggregate amount of any claims for any dwelling unit shall not be in excess of the maximum sum of $25,000.
[1]
Editor's Note: See N.J.S.A. 40A:21-1 et seq.
B. 
This exemption is also established for mixed-use, commercial and industrial buildings in the Hamilton Street Business District and the Renaissance Redevelopment Area. The program shall provide an abatement from real property taxation of the aggregate first $100,000 in the Assessor's full and true value of building improvements for each unit primarily and directly affected by a building improvement in a building over 20 years old as not increasing the value of such property for a five-year period, notwithstanding that the value of the building to which such improvements are made is increased thereby; provided, however, that during said period, the assessment on said improvements shall in no case except that of damage through action of the elements sufficient to warrant a reduction be less than the assessment thereon existing immediately prior to such improvements, and provided further that the aggregate amount of claims for any building not be in excess of the maximum sum of $100,000.
The following words and terms, when used in this article, shall have the following meanings, unless the context clearly indicates otherwise:
ABATEMENT
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 Act.
ACT
P.L. 1991, c 441, and all amendments and supplements thereto.[1]
APPLICATION
A written request for the exemption filed with the local Tax Assessor on forms devised by the Director of the Division of Taxation.
ASSESSOR
The officer of a taxing district charged with the duty of assessing real property for the purpose of general taxation.
ASSESSOR'S FULL AND TRUE VALUE OF HOME IMPROVEMENTS
That portion of any increased assessed value of real property which directly resulted from improvements made thereon.
COMPLETION
Substantially ready for the use for which it was intended.
CONDOMINIUM
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.).
COOPERATIVE
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.
DEPARTMENT
The Department of Community Affairs.
DWELLING
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.
EXEMPTION
That amount to be deducted from the Assessor's full and true value of home improvements.
HOME IMPROVEMENT
The improvement of a dwelling which does not change its permitted use, and shall include the modernization, rehabilitation, renovation, alteration or repair of a dwelling.
HORIZONTAL PROPERTY REGIME
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.).
[1]
Editor's Note: See N.J.S.A. 40A:21-1 et seq.
Real property must meet the following qualifications in order to gain the exemption:
A. 
It must contain a building or buildings which were constructed more than 20 years prior to the time of application for the exemption and are used or being held for use, in whole or part, as homes or residential dwellings, which are a constituent part of the real property.
B. 
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.
C. 
The property must be a mixed-use, commercial or industrial building in the Hamilton Street Business District or the Renaissance Redevelopment Area which was constructed more than 20 years prior to the application for exemption.
The following conditions shall apply to all claims for the exemption at the time of application:
A. 
Claims for the exemption shall be in writing upon forms prescribed by the Director of the Division of Taxation and must be filed with the local Tax Assessor within 30 days including Saturdays and Sundays following completion of the home improvement.
B. 
Additional claims for the exemption may be submitted and approved with regard to dwellings with respect to which a previous home improvement exemption was granted in an amount less than $25,000; provided, however, that the total aggregate amount of any claims for any dwelling unit for so long as this article shall apply shall not be in excess of the maximum sum of $25,000.
The following procedures shall apply upon allowance of exemption:
A. 
Every application for exemption of one or more improvements which qualify shall be approved and allowed by the Assessor, but in no case may the exemption exceed the maximum per dwelling unit.
B. 
Claim for the exemption, once filed on the prescribed form and allowed by the Assessor, shall continue in force for a period of five years following January 1 of the year in which the exemption was allowed.
C. 
The law requires that the granting of any exemption pursuant to the Act shall be recorded and made a permanent part of the official tax record. Accordingly, the Assessor shall designate the exemption by the symbol "H" under "Specific exemptions" on the real property tax list and reflect it in Column 7 on said list.
D. 
The law provides that, in applying the exemption, the Assessor may regard the improvements "... as not increasing the value of such property for a period of five years, notwithstanding that the value of the dwelling to which such improvements are made is increased thereby..." Accordingly, the provisions of N.J.S.A. 54:4-63.1 et seq., the Added and Omitted Assessment Laws, shall not apply to the allowable increase in the amount of assessed valuation in the year in which the improvements qualify for the exemption.
E. 
The law provides that every application for exemption of one or more improvements which qualify as improvements shall be approved and allowed by the Assessor. Where application for exemption is made, however, with respect to an improvement or improvements which do not qualify, the Assessor should notify the claimant of the disallowance of the claim, in writing, upon Form H.I.E.-2 within 20 days after disallowance and properly note thereon the specific reasons for the disallowance.
F. 
The exemption and abatement of real property taxes provided by municipalities pursuant to this Act shall apply to property taxes levied for municipal purposes, including fire districts and/or snow removal districts, school purposes, county government purposes and for the purposes of funding any other property tax exemptions or abatements.
A. 
The Commissioner of the Department of Community Affairs is authorized to determine standards and guidelines and to promulgate rules and regulations to effectuate the purposes of this Act.
B. 
The Township 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.
C. 
The Township Council 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 the Division of Taxation in the Department of the Treasury the total of real property taxes exempted and the total amount abated within the municipality in the current tax year for improvements of dwellings.
(1) 
The Director of the Division of Taxation shall include a summary of the information provided in the annual reports in the annual report of the Division.
D. 
No exemption or abatement granted, or tax agreement entered into, pursuant to an ordinance adopted pursuant to an act repealed by this Act shall be affected or terminated by virtue of that repeal, but shall remain in effect for the time and under the terms granted as if the act authorizing the ordinance had not been so repealed. Notwithstanding that repeal, any restriction or limitation contained in that Act against a property being granted an additional exemption or abatement thereunder shall apply with respect to granting an exemption or abatement under this Act, and no property which was granted an exemption or abatement under an act so repealed shall be granted an exemption or abatement under this Act unless the property would have qualified for an additional exemption or abatement under the act so repealed.
Application for exemptions and abatements from taxation may be filed pursuant to an ordinance so adopted to take initial effect for the first full year commencing after the tax year in which this article is adopted, and for tax years thereafter as set forth in this Act, but no application for exemptions or abatements shall be filed for exemptions or abatements to take initial effect for the 11th full year or any tax year occurring thereafter, unless the ordinance is readopted by the Township Council pursuant to this section.