[Adopted 5-3-2006 by Ord. No. 2006-5]
As used in this article, the following terms
shall have the meanings indicated:
That portion of assessed value of a property as it existed
prior to construction of a building or structure thereon which is
exempted from taxation pursuant to this article.
The officer of the Township of Oldmans charged with the duty
of assessing real property for the purpose of general taxation.
Structure or part thereof for the manufacturing, processing
or assembling of material or manufactured products, or 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 municipality, maintain or increase the
tax base of the municipality and maintain or diversify and expand
commerce within the municipality. It shall not include any structure
or part thereof used or to be used by any business relocation from
another qualifying municipality, unless the conditions set forth in
the statute have been satisfied.
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
The provision of a 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 use.
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 Act.
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 as a place for human habitation and which
does not change its permitted use. In the case of a commercial or
industrial 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 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 article.
Exemptions from taxation for improvements to
commercial or industrial structures may be granted upon review, evaluation
and approval of each application on an individual basis by the governing
body. In determining the value of real property, the Township of Oldmans
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.
Abatements from taxation for construction of
commercial or industrial structures may be granted upon review, evaluation
and approval of each application on an individual basis by the governing
body and upon execution of an agreement which shall be entered into
between the Township of Oldmans and the developer in accordance with
the procedures set forth in this article.
Contents:
A.
A general description of the project for which 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 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: 1) the real property taxes currently
being assessed at the project site; 2) estimated tax payments that
would be made annually by the applicant on the project during the
period of the agreement; and 3) 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 project and a history and description
of the users' businesses;
I.
Such other pertinent information as the governing
body may require.
Upon adoption of an ordinance authorizing an
agreement or agreements for tax abatements for a particular project
or projects, the Township of Oldmans may enter into written agreements
with the applicants for the abatement of local real property taxes.
An agreement shall provide for the applicant to pay to the Township
of Oldmans, in lieu of full property tax payments, an amount equal
to a percentage of taxes otherwise due, according to the following
schedule:
A.
In the first full tax year after completion, no payment
in lieu of taxes otherwise due;
B.
In the second tax year, an amount not less than 20%
of taxes otherwise due;
C.
In the third tax year, an amount not less than 40%
of taxes otherwise due;
D.
In the fourth tax year, an amount not less than 60%
of taxes otherwise due;
E.
In the fifth tax year, an amount not less than 80%
of taxes otherwise due.
A.
All tax abatement agreements entered into pursuant
to this article shall be in effect no more than the five full tax
years next 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 provisions, 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 abatement not been granted for the property under the agreement
shall be applied to the valuation of the property to determine the
reduced valuation of the property to be included in the valuation
of the Township of Oldmans for determining equalization for county
tax apportionment and school aid during the term of the tax agreements
covering the properties, and at the termination of an agreement for
a property, the reduced valuation procedure under this section shall
no longer apply.
D.
Within 30 days after the execution of a tax agreement,
the Township of Oldmans shall forward a copy of the agreement to the
Director of the Division of Local Government Services in the Department
of Community Affairs.
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 abatement
had been granted. The Tax Assessor shall notify the property owner
and the 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, for qualifying for
and receiving the full benefits of any other tax preference provided
by law.
The Assessor shall determine, on October 1 of
the year following the date of the completion of an improvement or
construction, the true taxable value thereof. Except for projects
subject to tax agreement as provided herein, the amount of tax to
be paid for the first full tax year following completion shall be
based on the assessed valuation of the improvement not allowed an
exemption pursuant to this article. The property shall continue to
be treated in the appropriate manner for each of the five full years
subsequent to the original determination of the Assessor.
No exemption or abatement shall be granted 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.
No exemption or abatement shall be granted pursuant
to this article except upon written application therefor filed with
and approved by the Oldmans Township Committee. Every application
shall be on a form prescribed by the Director of the Division of Taxation
in the Department of Treasury, and provided for the use of claimants
by the Township of Oldmans, and shall be filed with the Assessor and
the Township Clerk within 30 days, including Saturdays and Sundays,
following the completion of the improvements or construction. Every
application for exemption or abatement which is filed within the time
specified shall be approved and allowed by the Township Committee
to the degree that the application is consistent with the provisions
of this article, provided that the improvement or construction for
which the application is made qualifies as an improvement or construction
pursuant to the provisions of N.J.S.A. 40A:21-1 et seq. The granting
of an exemption or tax agreement 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 thereof.
[Amended 9-5-2007 by Ord. No. 2007-10]
Notice of the adoption of an ordinance establishing
tax exemptions and abatements shall be provided in accordance with
the provisions of N.J.S.A. 40A:21-20.