Township of Pennsauken, NJ
Camden County
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Table of Contents
Table of Contents
[Adopted 4-23-1997 by Ord. No. 97-2]
The Township Committee of the Township of Pennsauken is hereby authorized to enter into agreements with property owners and developers for tax abatement on dwellings, multiple-dwelling, commercial and industrial improvements or projects, pursuant to the provisions of N.J.S.A. 40A:20-1 et seq. and N.J.S.A. 40A:21-1 et seq., providing for the exemption from real property taxation and the abatement of real property taxation.
The following procedures shall govern agreements for tax abatements and exemptions entered into by the Township Committee of Pennsauken Township and property owners and developers:
A. 
Application process.
(1) 
All improvements, as defined in N.J.S.A. 40A:21-3n, shall be exempt from local real property taxes, if approved by the Tax Assessor as to the completeness, and then approved by Township Committee. Application shall be upon the form approved by the Township Committee and the Township Tax Assessor.
(2) 
Applicants shall be encouraged to apply for tax exemption on improvements prior to the commencement of construction of the improvement, provided that the applicant must file a proper application with the Tax Assessor within 30 days of the completion of the improvement in order to be eligible for tax exemption thereon.
(3) 
Every properly completed application for exemption on a single family residential property, having of one or more improvements, which is filed within 30 days of the completion of the improvement shall be approved and allowed or disapproved by the Assessor within 60 days of its filing.
B. 
Applications. Applicants for tax abatement and/or exemption on projects shall be provided to the Township Committee through the Township Assessor, setting forth:
(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 Township Committee 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 abatement and/or exemption on the project and a description of the benefits to be realized by the applicant if tax abatement 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) 
The estimated tax payments that would be made annually by the applicant on the project during the period of the agreement.
(c) 
The 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) 
If the project is a commercial or industrial building, 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.
(9) 
If the project is a multiple dwelling, a description of the number and types of dwelling units to be provided, a description of the common elements or general common elements, and a statement of the proposed initial rentals or sales prices of the dwelling units according to type and of any rental or resale restrictions to apply to the dwelling units respecting low- or moderate-income housing.
(10) 
Such other pertinent information as the Township Committee may require.
C. 
Exemptions and abatements on residential dwellings.
(1) 
Exemptions. With regard to the exemption from taxation of improvements to dwellings, in determining the value of real property, the Township shall regard the first $25,000 in assessor's full and true value of improvements for each dwelling unit primarily and directly affected by the improvement in any dwelling more than 20 years old, 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, unless an abatement is granted pursuant to Subsection C(2) of this section, or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
(2) 
Abatements for improvements. The Township Committee may abate some portion of the assessed value of property receiving the abatement as it existed immediately prior to the improvement. An abatement for a dwelling may be granted with respect to that property for a total of up to five years, but the annual amount of the abatement granted to any single property shall not exceed 30% of the annual amount of the abatement granted under this article. The abatement period and the annual percentage of the abatement to be granted shall be set forth in the specific ordinance which may include a schedule providing for a different percentage of abatement up to 30% for each year of the abatement period.
(3) 
Abatement for new construction and/or conversions. The Township Committee may abate some portion of the assessed valuation of construction of new dwellings or of conversions of other buildings and structures, including unutilized public buildings, to dwelling use, or both. In determining the value of real property, the municipality shall regard a percentage, not to exceed 30% of the Assessor's full and true value of the dwelling constructed, or conversion alterations made, as not increasing the value of the property for a total up to five years, notwithstanding that the value of the property upon which the construction or conversion occurs is increased thereby. The abatement period and the annual percentage of the abatement to be granted shall be set forth in the specific ordinance which may include a schedule providing for a different percentage of abatement, up to 30%, for each year of the abatement period.
(4) 
Joint abatement and exemption. A project-specific ordinance providing for exemption may also provide for the abatement of some portion of the assessed value of property receiving the 30% abatement as it existed immediately prior to the improvement or conversion alteration. The annual amount of the abatement shall not exceed 30% of the total cost of the improvement or conversion alteration, and the total amount of abatement and exemption granted to any single property shall not exceed the total cost of the improvement or conversion alteration. The abatement period and the annual percentage of the abatement to be granted shall be set forth in the specific ordinance which may include a schedule providing for a different percentage or abatement up to 30%, for each year of the abatement period.
D. 
Exemptions and abatements on commercial and industrial structures.
(1) 
With regard to the exemption from taxation of improvements to commercial or industrial structures in determining the value of real property, the municipality 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, 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, unless there is damage to the structure through action of the elements sufficient to warrant a reduction.
(2) 
With regard to exemptions and or abatements for any improvements other than single-family residential property, the Township shall authorize exemption for improvements on an individual basis after review, evaluation and approval of each application by the Township Committee.
An additional improvement, conversion or construction, completed on a property granted a previous exemption or abatement pursuant to this article during the period in which such previous exemption or abatement is in effect shall be qualified for an exemption, or exemption and abatement, just as if such property had not received a previous exemption or abatement. In such a case, the additional improvement, conversion or construction shall be considered as separate for the purposes of calculating exemptions and abatements pursuant to this article, 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 alteration or construction for the purpose of determining the assessed valuation of the property from which any additional abatement is to be subtracted.
Upon approval of a specific ordinance authorizing an agreement for tax exemption for a particular project, the Township Committee shall enter into a written agreement with the applicant for the exemption of full real property taxes. The agreement shall provide for the applicant to pay to the Township of Pennsauken, in lieu of full property tax payments, an amount annually in accordance with N.J.S.A. 40A:20-1 et seq.
No exemption or abatement shall be granted, or tax agreement entered into, 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.