[HISTORY: Adopted by the Board of Commissioners
of the Township of Nutley as indicated in article histories. Amendments
noted where applicable.]
GENERAL REFERENCES
Board of Assessment — See Ch. 7.
[Adopted 11-20-2007 by Ord. No. 3031]
The Township may enter into agreements with
parties for tax abatements or exemptions on commercial and industrial
improvements or projects pursuant to the State Constitution, Article
VII, Section 1, Paragraph 6, and the provisions of N.J.S.A. 40A:21-1
et seq. and N.J.S.A. 40A:12A-1 et seq. providing for abatement or
exemption from real property taxation of improvements or projects
for a period of five years.
As used in this article, 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 N.J.S.A.
40A:21-1 et seq.
The Assessor of the Township of Nutley charged with the duty
of assessing real property for the purpose of general taxation and
appointed pursuant to the provisions of Chapter 9 of Title 40A of
the New Jersey Statutes.
Any structure or part thereof used for manufacturing, processing,
assembling, research, office, industrial, commercial, retail, recreational,
hotel or warehousing purposes.
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
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 N.J.S.A.
40A:21-1 et seq.
The modernization, rehabilitation, renovation, alteration
or repair of a commercial or industrial structure that does not increase
the volume of the structure by more than 30%.
The construction of a new commercial or industrial structure
or structures, to be used or occupied by any person for the manufacturing,
processing or assembly of material or manufactured products or for
research, office, industrial, commercial, retail, recreational or
hotel or motel facilities or warehousing or for any combination thereof
and which the governing body determines will tend to maintain or provide
gainful employment within the municipality, assist in the economic
development of the municipality, maintain or increase the tax base
of the municipality and maintain or diversify and expand commerce
within the municipality. "Project" may also mean an enlargement of
the volume of an existing structure by more than 30%. "Project" shall
not include any facility or facilities which are the result of a removal
of a facility from any other qualifying municipality.
If the Township has determined that any area
within the Township is an area in need of rehabilitation pursuant
to N.J.S.A. 40A:12A-1 et seq., then an improvement or project in such
area in need of rehabilitation to which this article applies may be
entitled to a tax abatement or exemption subject to an agreement between
the Township and the developer. The following procedures shall govern
agreements for tax abatement or exemption entered into by the Township
and developers:
A.
Improvements.
(1)
All improvements, as defined in herein, shall be eligible
for abatement or exemption from local real property taxes on an individual
basis after review, evaluation and approval by the governing body
and after proper application has been made. Application shall be upon
the form approved by the Director of the Division of Taxation, in
the Department of the Treasury.
(2)
Application time limits; effective date; tax record;
assessment provisions.
(a)
Applicants shall be encouraged to apply for
tax abatement or 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, including
Saturdays and Sundays, following the completion of the improvement
or the effective date of this article, whichever is later. An abatement
or exemption that is granted shall take effect upon the issuance of
a certificate of occupancy or certificate of approval to the owner,
and it shall be recorded and made a permanent part of the official
tax records of the taxing district, which record shall contain a notice
of the termination date of the abatement.
(b)
The added assessment provisions of Section 3
of P.L. 1941, c. 397 (N.J.S.A. 54:4-63.3) and the omitted assessment
provisions of Section 9 of P.L. 1947, c. 413 (N.J.S.A. 54:4-63.20)
and Section 1 of P.L. 1968, c. 184 (N.J.S.A. 54:4-63.33) shall not
be applicable to any property for which the owner-occupant has been
granted a tax abatement or exemption under this article. (N.J.S.A.
40A:21-1 et seq.)
B.
Projects.
(1)
Applicants for a tax abatement or exemption on projects,
as defined herein shall provide the Township with an application upon
the form approved by the Director of the Division of Taxation, in
the Department of the Treasury, and setting forth the following information,
if applicable to that project:
(a)
A general description of the project for which
abatement or exemption 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 Township to demonstrate the structure and design of
the project.
(d)
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.
(e)
A statement of the reasons for seeking tax abatement
or exemption on the project and a description of the benefits to be
realized by the applicant if tax abatement or exemption 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, the estimated tax payments
that would be made annually by the applicant on the project during
the period of tax abatement or exemption and 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 abatement or exemption
agreement.
(h)
A description of any lease agreements between
the applicant and proposed users of the project and the history and
description of the user's business.
(i)
Such other pertinent information as the Township
may require. (See also N.J.S.A. 40A:21-1 et seq.)
C.
Application acceptance; Township ordinance and agreement;
agreement rescission.
(1)
Every properly completed application for abatement
or exemption of one or more improvements or projects which is filed
within 30 days of the completion of the improvement or project may
be allowed by the Assessor not later than 30 days of its filing.
(2)
Upon approval of an ordinance authorizing an agreement
for tax abatement or exemption for a particular improvement or project,
the Township shall enter into a written agreement with the applicant
for the abatement or exemption of local real property taxes. The 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 using
either, but not a combination, of the formulas set out in N.J.S.A.
40A:21-10. The Township hereby declares a preference to compute payments
in lieu of full property tax payments using the Tax Phase-in Basis
pursuant to N.J.S.A. 40A:21-10c. Such agreements may also be determined
in accordance with N.J.S.A. 40A:21-7. All tax abatement or exemption
agreements hereunder shall be in effect for a period of not more than
five full tax years following with the date of completion of the improvement
or project, pursuant to N.J.S.A. 40A:21-1 et seq.
(3)
No abatement or exemption shall be granted with respect
to any property for which property taxes are delinquent or remain
unpaid or for which penalties for nonpayment of taxes are due (N.J.S.A.
40A:21-1 et seq.). Moreover, it is the express intention of this article
that, if a property owner files a municipal tax appeal during any
time period of the tax abatement or exemption in question, said tax
abatement or exemption agreement shall become null and void. Thereafter,
the abated or exempted property shall be assessed free and clear of
the abatement or exemption municipal agreement.
