[Adopted 1-4-1999 by Ord. No. 1173[1]]
All previous ordinances adopted by the Borough
of Collingswood relating to abatements and exemptions for properties
located in areas in need of rehabilitation are superseded by this
article.
[Amended 2-7-2000 by Ord. No. 1207]
The Borough Commission hereby determines to
utilize the authority granted under Article VIII, Section I, paragraph
6 of the New Jersey Constitution to establish the eligibility of residential
dwellings, multiple dwellings, condominiums and cooperatives and the
eligibility of commercial and industrial structures for exemptions
and abatements permitted by P.L. 1991, c. 441,[1] throughout areas designated, or to be designated, as in
need of rehabilitation.
[1]
Editor's Note: See N.J.S.A. 40A:21-1 et seq.
This article authorizes the Borough of Collingswood
to grant exemptions and abatements to commence and take effect in
the 1999 tax year and thereafter.
A.
The Borough Commission determines to provide for the exemption from taxation of improvements to residential owner-occupied, single-family dwellings and the owner-occupied residential portion of mixed-use dwellings more than 20 years old. In determining the value of real property, the Borough shall regard the first $25,000 in 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, except if an additional abatement is granted for the property pursuant to Subsection B of this section, or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
[Amended 2-1-1999 by Ord. No. 1178]
B.
The Borough of Collingswood hereby determines to provide an additional abatement of some portion of the assessed value for a residential dwelling eligible for and receiving an exemption under Subsection A of this section. An abatement for a dwelling may be granted for a total of up to five years, and the annual amount granted to any single property shall not exceed 30% of the annual amount of the exemption granted under Subsection A of this section for each of the five years subject to the abatement.
[Amended 4-2-2001 by Ord. No. 1251]
C.
The Borough of Collingswood hereby determines to provide,
in addition to the exemptions provided in this article, an abatement
of the assessed valuation of conversions of buildings and structures
to single family dwelling use, as it existed immediately prior to
the conversion alteration.
[Amended 2-1-1999 by Ord. No. 1178]
D.
An abatement for a dwelling may be granted for a total
of up to five years, and the annual amount granted to any single property
shall not exceed 30% of the total cost of the conversion alteration.
The total amount of the abatements granted to any single property
shall not exceed the total cost of the conversion alteration.
[Amended 2-1-1999 by Ord. No. 1178]
[Amended 2-7-2000 by Ord. No. 1207]
A.
The Borough of Collingswood hereby determines to provide
an exemption from taxation of improvements to all commercial and industrial
structures and multiple dwellings, condominiums and cooperatives.
The exemption shall be granted for a five-year period and shall not
increase the value of the property by the value of the improvement,
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 thereon existing
immediately prior to the improvement unless there is damage to the
structure through action of the elements sufficient to warrant a reduction.
[Amended 2-1-1999 by Ord. No. 1178; 4-2-2001 by Ord. No.
1251]
B.
Applicants for tax exemption and abatement for new
construction of commercial or industrial structures and multiple dwellings,
condominiums and cooperatives shall provide the governing body of
the Borough of Collingswood with an application setting forth the
following information:
(1)
A general description of a project for which
exemption and 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 governing body to demonstrate the structure and design
of the project.
(4)
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.
(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 the real property taxes
currently being assessed at the project site; estimated tax payments
that would be made annually by the applicant on the project during
the period of the agreement; and estimated tax payments that would
be made by the applicant on the project during the first full year
following the termination of the tax agreement.
(8)
A description of any lease agreement between
the applicant and proposed users of the project and a history and
description of the users' businesses;
(9)
Such other pertinent information as the governing
body may require on a case-by-case basis.
The governing body of the Borough of Collingswood
may enter into a written agreement with an applicant for the exemption
and abatement of local property taxes. The agreement shall provide
for the applicant to pay the municipality in lieu of full property
taxes an amount equal to a percentage of taxes otherwise due according
to any one basis of the following three authorized by N.J.S.A. 40A:21-10:
A.
Cost basis. The 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 or improvement. For
the purposes of the 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 shall cause
to be certified and verified to the governing body by an independent
and qualified architect following the completion of the project.
B.
Gross revenue basis. The agreement may provide for
the applicant to pay to the municipality 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.
C.
Tax phase-in basis. The agreement may provide for
the applicant to pay to the municipality in lieu of full property
tax payments 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 tax year, an amount not less than
20% of taxes otherwise due.
(3)
In the third 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 tax year, an amount not less than
80% of taxes otherwise due.
The Clerk of the Borough of Collingswood, pursuant
to N.J.S.A. 40A:21-11, shall forward a copy of all tax agreements
entered into pursuant to this article to the Director of the Division
of Local Government Services in the Department of Community Affairs
within 30 days of the date of execution.
[Amended 4-2-2001 by Ord. No. 1251]
If during any tax year prior to the termination
of the tax abatement the property owner ceases to operate or disposes
of the property, or fails to meet the conditions for qualifying for
the abatement, the local property taxes due for all the prior years
subject to abatement and for the current year shall be payable as
if no exemption or abatement had been granted. The Tax Collector of
the Borough of Collingswood shall notify the property owner within
15 days of the date of disqualification of the amount of taxes due.
In the event that the subject property has been transferred to a new
owner, and it is determined that the new owner will continue to use
the property pursuant to the qualifying conditions, no tax shall be
due, the exemption and abatement shall continue and the agreement
shall remain in effect.
The Borough of Collingswood hereby determines
that an additional improvement, conversion or construction completed
on a property already granted a previous exemption or abatement pursuant
to this article during the period in which the previous exemption
or abatement is in effect shall qualify for an additional exemption
or abatement. The additional improvement, conversion or construction
shall be considered as separate for purposes of calculating the exemption
and abatement, except that the assessed value of any previous improvement,
conversion or construction shall be added to the assessed valuation
as it was prior to that improvement, conversion or construction for
the purpose of determining the assessed value of the property for
which any additional abatement is to be subtracted.
No exemption or abatement shall be granted or
tax agreement entered into pursuant to this article for any property
for which property taxes are delinquent or remain unpaid, or for which
penalties for nonpayment of taxes are due. As a condition to granting
an exemption or abatement, a property owner shall be required to waive
the filing of any tax appeal for the subject property for the life
of the exemption/abatement.
Every application submitted pursuant to this
article shall be on a form prescribed by the Director of the Division
of Taxation and shall be filed with the Tax Assessor of the Borough
of Collingswood, as a condition to approval, within 30 days, including
Saturdays and Sundays, following the completion of the improvement,
conversion or construction.
At the termination of an agreement for tax abatement
or exemption authorized pursuant to this article, the project shall
be subject to all applicable real property taxes, as provided by state
laws and regulations and local ordinances, provided that nothing herein
shall be deemed to prohibit the project or improvement at the termination
of the agreement for tax abatement from qualifying for and receiving
the full benefits of any other tax preference provided by law.
