[HISTORY: Adopted by the Mayor and Council of the Borough of Stanhope 10-31-2000 by Ord. No. 2000-16. Amendments noted where applicable.]
Editor's Note: Former Ch. 124, Swimming Pools, adopted 8-25-1969 by Ord. No. 1969-104, was repealed 7-27-1993 by Ord. No. 1993-15.
This chapter shall be known as the "Stanhope Borough 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 Stanhope has determined that the greater interest of the borough is served by encouraging renovation and rehabilitation of existing commercial structures and by encouraging construction of new commercial structures within the area in need of rehabilitation.
The definitions contained in N.J.S.A. 40A:21-3 are incorporated herein by reference.
[Amended 12-20-2005 by Ord. No. 2005-19]
All multiple dwellings, commercial and industrial structures and all residential structures converted in part or in full to a commercial structure located within the following defined area in need of rehabilitation shall be eligible for tax abatement under this chapter: Tax Map Block No. 11203, Lot Nos. 2, 3, 4, 5, 6, 8 and 9; Block No. 11203, Lot Nos. 11 and 13; Block No. 11206, Lot Nos. 7, 9, 10 and 11; Block No. 11207, Lot Nos. 8, 9, 10 and 11; Block No. 11208, Lot Nos. 4, 5 and 6; Block No. 11208, Lot Nos. 2, 3 and 11; Block No. 11304, Lot No. 32; Block No. 11401, Lot Nos. 4, 5, 6, 7, 8, 9, 10 and 11; Block No. 11402, Lot Nos. 1, 31, 33, 34, 35, 37, 39 and 42; Block No. 11601, Lot No. 1; Block No. 11701, Lot Nos. 2, 3, 5, 6, 7, 8, 10, 20, 22 and 23; Block No. 11702, Lot Nos. 1, 2, 3, 4 and 5.
The governing body may enter into agreements with developers for tax abatements. 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 chapter.
Applicants for tax abatement on projects shall provide the Borough Council with an application setting forth:
A general description of the project for which abatement is sought.
A legal description of all real estate necessary for the project.
Plans, drawings and other documents as may be required by the Borough Council to demonstrate the structure and design of the project.
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.
Estimates of the cost of completing such project.
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 tax abatement; 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 abatement agreement.
A description of any lease agreements between the applicant and proposed users of the project and a history and description of the user's business.
Such other pertinent information as the Borough Council may require.
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, an amount annually to be computed by either the cost basis; the gross revenue basis; the tax phase-in basis, as provided for in N.J.S.A. 40A:21-10. 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.
All tax agreements entered into by the governing body shall be in effect for no more than five full tax years next following the date of completion of the project.
All projects subject to tax agreement, as hereinabove provided, shall be subject to all applicable federal, state or local laws and regulations on pollution control, worker safety, discrimination in employment, housing provisions, zoning, planning and building code requirements.
That percentage which the payment in lieu of taxes for a property bears to the property tax which would have been paid had an exemption and abatement not been granted for the property under the agreement shall be applied to the valuation of the property to determine the reduced valuation of the property to be included in the valuation of the municipality for determining equalization for county tax apportionment and school aid during the term of the tax agreements covering the properties, and at the termination of an agreement for a property the required reduced valuation procedure shall no longer apply.
Within 30 days after the execution of a 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.
If a property becomes ineligible for a tax abatement or exemption prior to the termination of the tax agreement, the governing body and Tax Collector shall follow the procedures set forth in N.J.S.A. 40A:21-12.
The Assessor shall determine on October 1 of the year following the date of completion of an improvement the true taxable value thereof in accordance with the provisions of N.J.S.A. 40A:21-13.
Any ordinance authorizing a tax agreement pursuant to the provisions of N.J.S.A. 40A:21-1 et seq. and the provisions of this chapter may also provide that additional improvements, conversion or construction completed on a property granted a previous exemption or abatement shall also be qualified for an exemption and/or abatement just as if the property had not received a previous exemption or abatement. In such case, the additional improvement, conversion or construction shall be considered as separate for the purposes of calculating exemptions and abatements pursuant to this Act, which shall be calculated by the Assessor in accordance with the provisions of N.J.S.A. 40A:21-14.
No exemption or abatement shall be granted or tax agreement entered into pursuant to this chapter 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 chapter except upon written application therefore filed with and approved by the Assessor. Every application shall be on a form prescribed by the Director of the Division of Taxation and shall be filed with the Assessor within 30 days, including Saturdays and Sundays, following the completion of the improvement, conversion, alteration or construction. Each application shall be approved and allowed by the Assessor to the degree that the application is consistent with the provisions of this section or a tax agreement made pursuant hereto and meets the requirements imposed by NJ.S.A. 40A:21-16.
The exemption and abatement of real property taxes provided by this chapter shall apply to property taxes levied for municipal purposes, school purposes, county government purposes and for the purposes of funding any other property tax exemptions or abatements.
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 chapter during the first year following adoption of the chapter.
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 as required by law.