[Adopted 2-26-2019 by Ord. No. 2019-11[1]]
[1]
Editor's Note: This ordinance repealed former Art. V, Exemptions
for Industrial and Commercial Improvements, adopted 3-10-2009 by Ord.
No. 2009-15.
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 of a building or structure thereon which is
exempted from taxation pursuant to this article.
The officer of the City of Vineland 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 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, 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. It shall not include any structure or part
thereof used or to be used by any 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 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 article.
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 City of Vineland 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.
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 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.
Applicants for tax exemption for new construction of commercial
or industrial structures shall provide the governing body with an
application setting forth:
A.
A general description of a project for which an 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 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 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 project and a history and description of the users' businesses.
I.
Such other pertinent information as the governing body may require.
A.
Upon adoption of an ordinance authorizing an agreement or agreements
for tax exemptions for a particular project or projects, the City
of Vineland may enter into written agreements with the applicants
for the exemption of local real property taxes. An 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 as described in
N.J.S.A. 40A:21-10:
B.
Payments made in lieu of taxes pursuant to one of the above methods
shall become a part of the City of Vineland General Fund or such other
fund or account maintained by or on behalf of the City of Vineland
as may be designated by City Council in the ordinance authorizing
a tax agreement for a particular project.
A.
All tax exemption 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 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
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 municipality
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 City of
Vineland 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 exemption had been granted.
The City 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 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 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 property for the previous year plus any portion of 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 tax years subsequent to the original
determination by the Assessor.
No exemption 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 shall be granted pursuant to this article except
upon written application therefor filed with and approved by the 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 City of Vineland and shall be filed
with the Assessor within 30 days, including Saturdays and Sundays,
following the completion of the improvement or construction. Every
application for exemption which is filed within the time specified
shall be approved and allowed by the Assessor 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.
Ordinance No. 96-87, adopted by the City Council of the City
of Vineland on October 22, 1996, and all amendments thereto, be and
the same are hereby repealed. No exemption granted pursuant to prior
Ordinance No. 2009-15, as amended Ordinance No. 96-87, as amended,
Ordinance No. 93-38, as amended, or Ordinance No. 84-10, as amended,
shall be affected or terminated by virtue of this repeal but shall
remain in effect for the time and under the terms granted as if the
ordinance authorizing the exemption had not been so repealed.
Pursuant to N.J.S.A. 40A:21-20, notice of the adoption of this
article shall be included in the mailing of annual property tax bills
to each owner of a dwelling located in the City of Vineland during
the first year following adoption of this article.
