[HISTORY: Adopted by the Borough Council
of the Borough of Seaside Heights 12-20-2000 by Ord. No. 2000-22.
Amendments noted where applicable.]
The purpose of this chapter is to establish
procedures whereby qualified individuals and corporations may avail
themselves of the property tax exemptions and abatements which the
Borough of Seaside Heights is permitted by law to grant pursuant to
N.J.S.A. 40A:21-1 et seq.
[Amended 9-15-2010 by Ord. No. 10-16]
The areas covered by this chapter shall include
all areas designated as an area in need of rehabilitation. It is the
desire and intent of the chapter to promote the construction and rehabilitation
of structures in these areas and to combat economic decline.
As used in this chapter, the following terms
shall have the meanings indicated:
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
chapter.
A portion or all of the Borough which has been determined
to be an area in need of rehabilitation or redevelopment pursuant
to the "Local Redevelopment and Housing Law," P.L. 1992, c. 79 (N.J.S.A.
40A:12A-1 et al.), a "blighted area" as determined pursuant to the
"Blighted Areas Act," P.L. 1949, c. 187 (N.J.S.A. 40:55-21.1 et seq.),
or which has been determined to be in need of rehabilitation pursuant
to P.L. 1975, c. 104 (N.J.S.A. 54:4-3.72 et seq.), P.L. 1977, c. 12
(N.J.S.A. 54:4-3.95 et seq.), or P.L. 1979, c. 233 (N.J.S.A. 54:4-3.121
et seq.).
[Amended 9-15-2010 by Ord. No. 10-16]
The officer of the Borough of Seaside Heights charged with
the duty of assessing real property for the purpose of general taxation.
A structure or part thereof used for the manufacturing, processing
or assembling of material or manufactured products or used for research,
office, industrial, commercial, retail, recreational, hotel or motel
facilities or warehousing purposes, or for any combination thereof,
which the governing body determines will tend to maintain or provide
gainful employment within the borough, assist in the economic development
of the borough, maintain or increase the tax base of the borough and
maintain or diversify and expand commerce within the borough. It shall
not include any structure or part thereof used or to be used by a
business relocated from another qualifying municipality.
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
The provision of a new commercial or industrial structure
or the enlargement of the volume of an existing commercial or industrial
structure by more than 30%, but shall not mean the conversion of an
existing building or structure to another property class use.
The alteration or renovation of a building or structure in
such manner as to convert the building or structure from its previous
use to use as a commercial or industrial structure.
Only the cost or fair market value of direct labor and materials
used in improving, converting or constructing a building or structure,
including any architectural, engineering and contractor's fees associated
therewith, as the owner of the property shall cause to be certified
to the governing body by an independent and qualified architect following
the completion of the project.
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,[1] or the Condominium Act[2] or of a cooperative if the residential units are owned
separately.
That portion of the Assessor's full and true value of any
improvement, conversion, alteration or construction not regarded as
increasing the taxable value of a property pursuant to this chapter.
A modernization, rehabilitation, renovation, alteration or
repair which produces a physical change in an existing building or
structure that improves the safety, sanitation, decency or attractiveness
of the building or structure. It shall not include ordinary painting,
repairs and replacement of maintenance items or an enlargement of
the volume of an existing structure by more than 30%. In no case shall
it include the repair of fire or other damage to a property for which
payment of a claim was received by any person from an insurance company
at any time during the three-year period immediately preceding the
filing of an application pursuant to this chapter unless the improvement
resulted in compliance with the base flood elevation standard in place
at the time of the improvement and the demonstrated cost of the improvement
is no less than $100,000.
[Amended 12-30-2014 by Ord. No. 14-23]
A building or structure meeting the definition of "multiple
dwelling" as set forth in the Hotel and Multiple Dwelling Law, and
means for the purpose of improvement or construction the "general
common elements" and "common elements" of a condominium, a cooperative
or a horizontal property regime.
A.
This chapter authorizes an exemption from taxation
of improvements to multiple dwellings, commercial or industrial structures
as defined herein. This exemption shall be granted only by the governing
body on an individual basis after review, evaluation and approval
of each application.
[Amended 12-6-2017 by Ord. No. 2017-19; 9-6-2023 by Ord. No. 2023-27]
B.
With regard to exemption from taxation of improvements
to multiple dwellings, commercial or industrial structures, the municipality
shall regard, in determining the value of real property, 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.
[Amended 12-6-2017 by Ord. No. 2017-19; 9-6-2023 by Ord. No. 2023-27]
C.
Upon the timely receipt of a completed application,
the governing body may approve a tax agreement providing for the tax
phase-in for the value of the improvements as cited by the Assessor
or an alternate taxing method if it is in the public interest.
[Amended 12-30-2014 by Ord. No. 14-23]
A.
This chapter authorizes the granting of a tax abatement and exemption
for new construction of certain improvements to multiple dwellings,
commercial or industrial structures as defined herein.
[Amended 12-6-2017 by Ord. No. 2017-19; 9-6-2023 by Ord. No. 2023-27]
[Amended 12-6-2017 by Ord. No. 2017-19; 9-6-2023 by Ord. No. 2023-27]
With regard to tax exemption and abatement for
improvements to multiple dwellings, commercial or industrial structures,
all applicants shall provide the governing body with and application
setting forth:
A.
A general description of a project for which exemption
and abatement is sought.
B.
A legal description of all real estate necessary for
the project.
C.
Plans, drawings and other documents as may be required
by the governing body to demonstrate the structure and design of the
project.
D.
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.
E.
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.
F.
Estimates of the cost of completing such project.
G.
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.
H.
A description of any lease agreements between the
applicant and proposed users of the commercial or industrial project
and a history and description of the users' businesses.
I.
Such other pertinent information as the governing
body may require.
On approval by the governing body of a tax agreement
for a particular project, the governing body may enter into a written
agreement with the applicant for the exemption and abatement of local
real property taxes. The agreement shall provide for the applicant
to pay to the municipality in lieu of full property tax payments an
amount annually to be computed by one, but in no case a combination,
of the following formulas:
A.
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
of the increased taxes otherwise due as a result of the improvement
or construction.
(2)
In the second tax year, an amount not less than 20%
of the tax increase otherwise due as a result of the improvement or
construction.
(3)
In the third tax year, an amount not less than 40%
of the tax increase otherwise due as a result of the improvement or
construction.
(4)
In the fourth tax year, an amount not less than 60%
of the tax increase otherwise due as a result of the improvement or
construction.
(5)
In the fifth tax year, an amount not less than 80%
of the tax increase otherwise due as a result of the improvement or
construction.
B.
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. For the purposes of
the agreement, the "cost of the project" means only the fair market
value of the direct labor and the cost of all materials used in the
construction, expansion or rehabilitation of all buildings, structure
and facilities at the project site, including the cost, 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.
C.
Gross revenue basis. The agreement may provide for
the applicant to make an annual payment to the municipality in lieu
of full property tax payments in an amount 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.
A.
All tax agreements entered into under this chapter
shall be in effect for no more than five full tax years following
the date of completion of the project.
B.
All projects subject to tax agreement as provided
herein shall be subject to all applicable federal, state and local
laws and regulations on pollution control, worker safety, discrimination
in employment, housing provision, zoning, planning and building code
requirements.
C.
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 shall
be applied to the valuation of the property for determining equalization
for county tax apportionment and school aid during the term of the
tax agreement.
D.
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 and the Department of
Community Affairs and to such other officials or agencies that the
governing body may direct.
A.
If during any tax year prior to the termination of
the tax agreement the property owner ceases to operate or disposes
of the property or fails to meet the conditions for qualifying, then
the tax which would have otherwise been payable for each tax year
shall become due and payable from the property owner as if no exemption
and abatement had been granted. The governing body shall notify the
property owner and Tax Collector forthwith and the Tax Collector shall,
within 15 days thereof, notify the owner of the property of the amount
of taxes due. However, with respect to the disposal of the property
where it is determined that the new owner of the property will continue
to use the property pursuant to the conditions which qualified the
property, no tax shall be due, the exemption and the abatement shall
continue and the agreement shall remain in effect.
B.
At the termination of a tax agreement, a project shall
be subject to all applicable real property taxes as provided by state
law and regulation and local ordinance; but nothing herein shall prohibit
a project, at the termination of an agreement, from qualifying for
and receiving the full benefits of any other tax preferences provided
by law.
The Borough Assessor shall determine, on October
1 of the year following the date of the completion of an improvement,
conversion or construction, the true taxable value thereof. Except
for projects subject to tax agreement pursuant to this chapter, the
amount of tax to be paid for the first full tax year following completion
shall be based on the assessed valuation of the property for the previous
year, minus the amount of the abatement, if any, allowed pursuant
to this chapter, plus any portion of the assessed valuation of the
improvement, conversion or construction not allowed an exemption pursuant
to this chapter. The property owner shall continue to be treated in
the appropriate manner under the terms of this chapter and the tax
agreement, if any, for each of the five full tax years subsequent
to the original determination by the Borough Assessor.
Any additional improvement, conversion or construction
completed on a property granted a previous exemption or abatement
pursuant to this chapter 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 case, the additional improvement,
conversion or construction shall be considered as separate for the
purposes of calculating exemptions and abatements pursuant to this
chapter, except that the assessed value of any previous 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.
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 filed with and approved
by the Borough Tax Assessor. Every application shall be on a form
prescribed by the Director of the Division of Taxation in the Department
of the Treasury and provided for the use of claimants by the Borough
of Seaside Heights and shall be filed with the Borough Assessor within
30 days, including Saturdays and Sundays, following the completion
of the improvement, conversion alteration or construction and/or issuance
of a certification of occupancy, whichever occurs first. Every application
for exemption or exemption and abatement which is filed within the
time specified shall be approved and allowed by the Assessor and governing
body to the degree that the application is consistent with the provisions
of the adopting ordinance or the tax agreement, provided that the
improvement, conversion alteration or construction for which the application
is made qualified as an improvement, a conversion alteration or construction
pursuant to the provision of this chapter and the tax agreement, if
any. The granting of an exemption or exemption and abatement or tax
agreement shall be recorded and made a permanent part of the official
tax records of the borough, which record shall contain a notice of
the termination date thereof.
The exemption and abatement of real property
taxes pursuant to 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 Borough Tax Collector shall include a notice
describing the exemption program or exemption and abatement program
provided for by this chapter and the application procedure therefore
in the mailing of annual property tax bills to each owner of property
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.
A.
The Tax Assessor shall report, on or before September
1 of each year, to the Mayor and Council as to the total amount of
real property taxes exempted and the total amount abated within the
borough in the current tax year under this chapter.
B.
The report shall state, for the current tax year,
the total amount of payments made in lieu of taxes according to the
formula utilized by the borough and the difference between that total
amount and the total amount of real property taxes which would have
been paid on the project had the tax agreement not been in effect.
No exemption or abatement granted by any prior
ordinance or law shall be affected or terminated by this chapter but
shall remain in effect for the time and under the terms granted as
if the ordinance had not been superseded or repealed.
If any provision of this chapter or the application
of such provision to any person or circumstance is declared invalid,
such invalidity shall not affect the other provisions or applications
of this chapter which can be given effect, and to this end, the provisions
of this chapter are declared to be severable.
[Amended 9-15-2010 by Ord. No. 10-16; 12-16-2020 by Ord. No. 2020-14]
This chapter shall take effect immediately and
shall, pursuant to N.J.S.A. 40A:21-4, remain effective until December
31, 2030, unless either readopted or repealed before that date.
