[HISTORY: Adopted by the Mayor and Council of the Township of Clinton as indicated in article histories. Amendments noted where applicable.]
[Adopted 7-23-2008 by Ord. No. 967-08]
A tax (hereinafter "hotel tax"), at the rate and in the manner set forth in this article, is hereby imposed on charges of rent for every occupancy of a room or rooms in a hotel located in the Township and subject to taxation pursuant to Subsection (d) of N.J.S.A. 54:32B-3, the New Jersey State Sales Tax, as said statute may be amended from time to time.
The following terms, when used in this article, shall have the same meaning as those terms are defined in N.J.S.A. 54:32B-2, as said statute may be amended from time to time: hotel, occupancy, occupant, person, room and vendor.
The phrases "person required to collect the rent" and "person required to collect the hotel tax," as used in this article, shall have the same meaning as the phrase "persons required to collect tax" is defined in N.J.S.A. 54:32B-2, as said statute may be amended from time to time.
Beginning on the effective date of this article the hotel tax shall be 3% on charges of rent for every occupancy.
The hotel tax shall be in addition to any other tax or fee imposed pursuant to federal, state or local law or regulation upon the occupancy of a hotel room located in the Township.
The hotel tax shall be paid by the occupant and a vendor shall not assume or absorb any tax imposed herein.
A vendor shall not in any manner advertise or hold out to any person or the public in general, in any manner, directly or indirectly, that the hotel tax will be assumed or absorbed by the vendor, that the hotel tax will not be separately charged and stated to the occupant, or that the hotel tax will be refunded to the occupant.
Any vendor who violates this section shall, upon conviction thereof, be subject to the general penalty set forth in § 1-17 of this Code.
Each assumption or absorption by a vendor of the hotel tax shall be deemed a separate offense and each representation or advertisement by a vendor for each day the representation or advertisement continues shall be deemed a separate offense.
The hotel tax shall be collected on the Township's behalf by the person collecting the rent from the hotel occupant.
Any person required to collect the rent from the hotel occupant shall have the same right in respect to collecting the tax from the occupant as if the tax were part of the rent and payable at the same time; provided, however, that the Township Chief Financial Officer shall be joined as a party in any action or proceeding brought to collect the hotel tax.
Each person required to collect the rent from the hotel occupant shall be personally liable for the hotel tax imposed, collected or required to be collected as set forth in this article.
Every person required to collect the hotel tax shall, on or before the 28th day of each month, forward to the Director of the Division of Taxation in the New Jersey Department of the Treasury ("Director") the hotel tax collected in the preceding month and make and file a return for the preceding month with the Director.
The return shall be filed on such form and containing such information as the Director shall prescribe as necessary. The Director may permit or require returns to be made covering other periods and upon any dates as the Director may specify. Additionally, the Director may require payments of tax liability at any intervals and based upon any classifications as the Director may designate.
The hotel tax shall be administered and distributed solely in accordance with the requirements set forth at N.J.S.A. 40:48F-5, as said statute may be amended from time to time. Upon the Director's certification of the amount of revenues collected in the Township on a quarterly basis and upon the warrant to the New Jersey State Comptroller, the hotel tax is paid and distributed to the Township.
[Adopted 7-19-2017 by Ord. No. 1105-17]
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.
The Mayor and Council hereby find:
Pursuant to N.J.S.A. 40A:21-l et seq., a municipality having within its corporate limits areas in need of rehabilitation or redevelopment may, by ordinance, provide for the exemption and/or abatement of real property taxes, to encourage and provide incentives for the improvement, conversion, or construction of certain structures.
The Township of Clinton desires to establish real estate tax incentives for the improvement, conversion or construction of dwellings, multiple dwellings, commercial structures and mixed use structures within areas that have been designated as being in need of rehabilitation or redevelopment.
N.J.S.A 40A:21-l et seq. provides for the exemption of assessments for five years following completion of a project as defined in the statute and the exemption of property taxes for improvement, conversion, or construction for a five year period following completion of the project as defined in the statute.
The Township hereby authorizes the utilization of tax exemption in accordance with Article VIII, Section 1, Paragraph 6, of the New Jersey Constitution and establishes the eligibility of dwellings, multiple dwellings, commercial structures and mixed-use structures in areas designated as being in need of rehabilitation or redevelopment for five-year tax exemptions to the extent set forth herein, such exemption to commence upon completion of the project.
Conversions to dwelling use. The conversion of other buildings and structures, including unutilized public buildings, to dwelling use shall be eligible for tax exemption for a period of five years in accordance with the following:
Tax exemptions for such projects may only be approved by resolution of the Mayor and Council.
In determining the value of real property, the Assessor or Mayor and Council shall regard a percentage, not to exceed 30%, of the assessor's full and true value of the dwelling converted as not increasing the value of the property, notwithstanding that the value of the property upon which the conversion occurs is increased thereby.
Improvements to commercial structures. Improvements to commercial structures are eligible for tax exemption for a period of five years in accordance with the following:
Tax exemptions for such projects may only be approved by resolution of the Mayor and Council.
In determining the value of real property, the Assessor or Mayor and Council shall regard up to the assessor's full and true value of the improvements as not increasing the value of the property for a period of five years.
This exemption is to be granted 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 improvements, unless there is damage to the structure through action of the elements sufficient to warrant a reduction.
New construction of multiple dwellings. New construction of multiple dwellings is eligible for tax exemption for a period of five years. This exemption may only be approved by ordinance of the Mayor and Council on a project-by-project basis and pursuant to a tax agreement as set forth herein.
Any exemption for new construction of multiple dwellings pursuant to § 245-11C shall be subject to the owner and Township entering into a tax agreement as provided by N.J.S.A. 40A:21-10. Specifically:
The applicant shall furnish to the Township all information required by N.J.S.A. 40A:21-9·
The tax agreement shall provide for the applicant to pay to the Township in lieu of full property tax payments an amount annually to be computed by one, but in no case a combination, of the three formulas set forth in N.J.S.A. 40A:21-10, namely the "Cost," "Gross revenue," or "Tax phase-in" basis;
The aforesaid annual payments shall not be in lieu of sewer or water charges, or other special assessments imposed in accordance with applicable law;
The tax agreement shall be in effect for no more than five full years next following the date of the completion of the project;
Within 30 days after the execution of any tax agreement, the Township Clerk shall forward a copy of the agreement to the Director of the Division of Local Government Services in the Department of Community Affairs; and
Every applicant shall file the application form prescribed by the Director of the New Jersey Division of Taxation in the Department of the Treasury, with the Tax Assessor, as a condition to approval within 30 days, including Saturdays and Sundays, following the completion of the project. Every application for exemption so filed 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 project for which the application is made qualifies as such pursuant to the provisions of this article and the specific tax agreement.
Mixed-use structures are eligible for tax exemption in accordance with the requirements set forth in this article for the various components of the mixed use.
All agreements made pursuant to this article shall provide that the applicant is subject to all federal, state and local laws and regulations.
If the property becomes ineligible for tax exemption prior to the termination of the agreement, the Mayor and Council and Tax Collector shall undertake the procedures established by N.J.S.A. 40A:21-12. No exemptions shall be granted for any property for which taxes or any other municipal charges are delinquent or remain unpaid of for which penalties for nonpayment are due for a period of at least one year, or for any property not being used in conformance with federal, state or local law or regulation.
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 Township, the Township Tax Assessor shall notify the applicant in writing of the default. The applicant shall have 30 days to cure any default. Following the thirty-day cure period, the Township shall have the right to proceed against the property pursuant to the In Rem Tax Foreclosure Act, N.J.S.A. 54:5-104.29 et seq., and/or may cancel the tax agreement upon 30 days' notice to the applicant.
At the termination of a tax agreement, a project shall be subject to all applicable real property taxes.
The exemption of real property taxes provided pursuant to this article 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.
The Township Clerk is hereby authorized and directed to forward a certified copy of this article to the State of New Jersey, Department of Community Affairs.
An annual report, as required by N.J.S.A. 40A:21-21, shall be filed by the Township with the Director of the Division of Local Government Services, Department of Community Affairs and Director of the Division of Taxation, Department of the Treasury.
An appeal of any determination made by the Township under the terms of this article shall be made to the Hunterdon County Board of Taxation, unless a direct appeal to the New Jersey Tax Court is authorized.
No application for tax exemption shall be filed for an exemption to take initial effect for tax year 10 years from adoption or any tax year thereafter, unless this article is readopted by the Mayor and Council in accordance with N.J.S.A 40A:21-4.