[HISTORY: Adopted by the Mayor and Council of the Borough of Tuckerton as indicated in article histories. Amendments noted where applicable.]
[Adopted 6-15-1992 by Ord. No. 14-1992]
The Mayor and Borough Council of the Borough of Tuckerton are hereby authorized to enter into agreements with property owners and developers for tax abatement on multiple-dwelling, commercial and industrial improvements or projects, pursuant to the provisions of P.L. 1991, c. 441, providing for the exemption from real property taxation of improvements and the abatement of real property taxation on projects for a period of five years.
Editor's Note: See N.J.S.A. 40A:21-1 et seq.
The following procedures shall govern agreements for tax abatement entered into by the Mayor and Borough Council of the Borough of Tuckerton and property owners and developers:
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 after proper application has been made. Application shall be upon the form approved by the Mayor and Borough Council and the Borough Tax Assessor.
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 60 days of the completion of the improvement in order to be eligible for tax exemption thereon.
Every properly completed application for exemption of one or more improvements which is filed within 60 days of the completion of the improvement shall be approved and allowed by the Assessor within 60 days of its filing.
Applications. Applicants for tax abatement on projects shall provide the Mayor and 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 Mayor and 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.
A statement of the reasons for seeking tax abatement on the project and a description of the benefits to be realized by the applicant if tax abatement is granted.
Estimates of the cost of completing such project.
A statement showing:
The real property taxes currently being assessed at the project site.
The estimated tax payments that would be made annually by the applicant on the project during the period of tax abatement.
The estimated tax overpayments 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 Mayor and Borough Council may require.
Agreements. Upon approval of a specific ordinance authorizing an agreement for tax abatement for a particular project, the Mayor and 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 Borough of Tuckerton, in lieu of full property tax payments, an amount annually to be computed by using either, but not a combination of, the formulas set out in N.J.S.A. 40A:21-10. All tax abatement agreements hereunder shall be in effect for a period of not more than five years and shall take initial effect for the first full tax year commencing after the tax year in which the agreement is authorized and executed.
With regard to the exemption from taxation of improvements to multiple dwellings or of conversions of other buildings and structures, including unutilized public buildings, to multiple-dwelling use, or both, in determining the value of real property, the municipality shall regard up to the Assessor's full and true value of the improvements or conversion alterations 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 or conversion alterations 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 or conversion alterations, unless an abatement is granted pursuant to Subsection D(2) of this section, or there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction.
A project specific ordinance providing for exemption may also provide for the abatement of some portion of the assessed value of property receiving the exemption as it existed immediately prior to the improvement or conversion alteration. An abatement for a multiple dwelling may be granted with respect to that property for a total of up to five years, but 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 abatements 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 of abatement, up to 30%, for each year of the abatement period.
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.
With regard to exemptions for commercial and industrial improvements, the Borough shall authorize exemption for improvements on an individual basis after review, evaluation and approval of each application by the governing body.