[Adopted 10-7-2008 by Ord. No. 21-2008]
The purposes of this article are to:
A.
Improve property values.
B.
Foster commercial and economic investment in the Township.
C.
Protect and enhance the Township's attraction to residents, tourists
and visitors and serve as a support and stimulus to business and industry.
D.
Provide the Township with the greatest flexibility within the constitutional
limitations to address problems of deterioration and economic and
social decline while preserving the salient features of existing tax
exemption or abatement programs.
E.
Provide initiatives for gainful employment within the Township, as
well as maintain, diversify and expand commerce within the Township.
The Township Council hereby determines to utilize the authority
granted under Article VIII, Section 1, paragraph 6 of the New Jersey
Constitution to establish the eligibility of dwellings, multiple dwellings,
commercial and industrial improvements and structures for exemptions
and abatements to the maximum degree permitted by N.J.S.A. 40A:21-1
et seq. throughout the area designated as in need of rehabilitation
and affected neighboring properties and/or properties identified in
the Township's Redevelopment Plan.
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 this
article.
A portion or all of a municipality 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 seq.), 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.[1]), 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.[2]), P.L. 1977, c. 12 (N.J.S.A. 54:4-3.95 et seq.[3]), or P.L. 1979, c. 233 (N.J.S.A. 54:4-3.121 et seq.[4]).
The officer of a taxing district 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 unless: the total square footage of the floor
area of the structure or part thereof used or to be used by the business
at the new site, together with the total square footage of the land
used or to be used by the business at the new site, exceeds the total
square footage of that utilized by the business at its current site
of operations by at least 10%; and the property that the business
is relocating to has been the subject of a remedial action plan costing
in excess of $250,000, performed pursuant to an administrative consent
order entered into pursuant to authority vested in the Commissioner
of Environmental Protection under P.L. 1970, c. 33 (N.J.S.A. 13:1D-1
et seq.), the Water Pollution Control Act, P.L. 1977, c. 74 (N.J.S.A.
58:10A-1 et seq.), the Solid Waste Management Act. P.L. 1970, c. 39
(N.J.S.A. 13:1 E-1 et seq.), and the Spill Compensation and Control
Act, P.L. 1976, c. 141 (N.J.S.A. 58:10-23.11 et seq.).
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
A property created or recorded as a condominium pursuant
to the Condominium Act, P.L. 1399, c. 257 (N.J.S.A. 46:8B-1 et seq.).
The provision of a new dwelling, multiple dwelling or commercial
or industrial structure, or the enlargement of the volume of an existing
multiple dwelling or commercial or industrial structure by more than
30%, but shall not mean the conversion of an existing building or
structure to another use.
The alteration or renovation of a nonresidential building
or structure, or hotel, motel, motor hotel or guesthouse, in such
manner as to convert the building or structure from its previous use
to use as a dwelling or multiple dwelling.
A housing corporation or association, wherein the holder
of a share or membership interest thereof is entitled to possess and
occupy for dwelling purposes a house, apartment, or other unit of
housing owned by the corporation or association, or to purchase a
unit of housing owned by the corporation or association.
When used with respect to abatements for dwellings or multiple
dwellings, only the cost or fair market value of direct labor and
materials used in improving a multiple dwelling, or of converting
another building or structure to a multiple dwelling, or of constructing
a dwelling, or of converting another building or structure to a dwelling,
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. 1397, 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, P.L. 1393, c.
168 (N.J.S.A. 46:8A-1 et seq.), or the Condominium Act, P.L. 1399,
c. 257 (N.J.S.A. 46:88-1 et seq.), 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 article.
A property submitted to a horizontal property regime pursuant
to the Horizontal Property Act, P.L. 1393, c. 168 (N.J.S.A. 46:8A-1
et seq.).
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 or work
and which does not change its permitted use. In the case of a multiple
dwelling, it includes only improvements which affect common areas
or elements, or three or more dwelling units within the multiple dwelling.
In the case of a multiple dwelling or 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 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 article.
A building or structure meeting the definition of "multiple
dwelling" set forth in the Hotel and Multiple Dwelling Law, P.L. 1397,
c. 76 (N.J.S.A. 55:13A-1 et seq.), 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.
[1]
Editor's Note: N.J.S.A. 40:55-21.1 through 40:55-21.14 were
repealed by L. 1992, c. 79, § 59. See now N.J.S.A. 40A:12A-1
et seq.
[2]
Editor's Note: N.J.S.A. 54:3-72 through 54:3-78 were repealed
by L. 1991, c. 441, § 22, effective 1-18-1992. See now N.J.S.A.
40A-21-1 et seq.
[3]
Editor's Note: N.J.S.A. 54:4-3.95 through 54:4-3.112 were
repealed by L. 1991, c. 441, § 22, effective 1-18-1992.
See now N.J.S.A. 40A:21-1 et seq.
[4]
Editor's Note: N.J.S.A. 54:4-3.121 through 54:4-3.129 were
repealed by L. 1991, c. 441, § 22, effective 1-18-1992.
See now N.J.S.A. 40A:21-1 et seq.
This article authorizes the Township of Logan to grant exemptions
and abatements to commence and take effect in the 2008 tax year and
thereafter.
The Township Council hereby determines to provide for the exemption from taxation of improvements to dwellings more than 20 years old. In determining the value of real property, the Township shall regard the first $25,000 in the Assessor's full and true value of improvements for each dwelling unit primarily and directly affected by 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, except if an additional abatement is granted for the property pursuant to § 139-8 of this article or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
The Township Council hereby determines to provide an additional abatement for a dwelling eligible for and receiving an exemption under § 139-7 of this article. The abatement shall be for a period of five years and shall equal 30% of the exemption granted under § 139-7 of this article for each of the five years subject to the abatement.
The Township Council hereby determines to provide for an exemption from taxation of improvements to multiple dwellings or conversions of other buildings and structures, including unutilized public buildings, to multiple dwelling use. The term "improvement" is defined by § 139-5, and includes only changes which affect common areas or elements of three or more dwelling units within a multiple dwelling and does not include ordinary painting, repairs and replacement of maintenance items or an enlargement of the volume of an existing structure by more than 30%. The Township shall regard 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. This exemption is to be granted 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 existing thereon immediately prior to the improvement or conversion alteration.
The Township Council hereby determines to provide an additional abatement for a dwelling eligible for and receiving an exemption under § 139-9 of this article. The abatement shall be for a period of five years and shall equal 30% of the exemption granted under § 139-9 of this article for each of the five years subject to the abatement.
The Township Council hereby determines to provide an exemption from taxation of improvements to commercial structures. Such an improvement, as defined by § 139-5, shall not include ordinary painting, repairs and replacement items or an enlargement of the volume of the existing structure by more than 30%. The exemption shall be granted for a five-year period and shall not increase the value of the property by the value of the improvement, notwithstanding that the value of the property to which the improvement is 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 improvement, unless there is damage to the structure through action of the elements sufficient to warrant a reduction.
A.
The Township Council hereby determines to grant exemption and abatement
from taxation for the new construction of commercial and industrial
structures pursuant to the procedures set for in N.J.S.A. 40A:21-1
et seq., and in this article.
B.
Applicants for tax exemption and abatement for new construction of commercial and industrial structures shall follow the provisions of § 139-13 and shall provide the Tax Assessor of the Township of Logan with an application, in triplicate, setting forth the following information:
(1)
A general description of a project for which exemption and abatement
is sought.
(2)
A legal description of all real estate necessary for the project.
(3)
Plans, drawings and other documents as may be required by the Tax
Assessor to demonstrate the structure and design of the project.
(4)
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.
(5)
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.
(6)
Estimates of the cost of completing such project.
(7)
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.
(8)
A description of any lease agreement between the applicant and proposed
users of the project and a history and description of the users' businesses.
(9)
Such other pertinent information as the Township Council may require
on a case-by-case basis.
C.
Following the adoption of an ordinance as set forth in § 139-13, authorizing a tax agreement for a particular project, the Township Council and the Tax Assessor of the Township of Logan shall enter into a written agreement with an applicant for the exemption and abatement of local property taxes. The agreement shall provide for the applicant to pay the Township in lieu of full property taxes 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 in lieu of
taxes otherwise due.
(2)
In the second tax year, an amount not less than 20% of taxes otherwise
due.
(3)
In the third tax year, an amount not less than 40% of taxes otherwise
due.
(4)
In the fourth tax year, an amount not less than 60% of taxes otherwise
due.
(5)
In the fifth tax year, an amount not less than 80% of taxes otherwise
due.
All applications for tax abatement shall be made to the Tax
Assessor. Upon receipt of a completed application, the Tax Assessor
shall:
A.
Review the application. When the Tax Assessor deems the application
complete and that the improvement(s) meet the intent and criteria
established by N.J.S.A. 40A:21-1 et seq., it shall be forwarded to
the Township Council with an advisory report requesting the project
be approved.
B.
The Township Council, upon receipt of the report set forth above,
shall consider passage of an appropriate tax abatement ordinance for
said project.
C.
The Clerk of the Township of Logan is authorized to forward a copy
of all executed abatement agreements entered into pursuant to this
article to the Director of the Division of Local Government Services
in the Department of Community Affairs within 30 days of the date
of execution.
A.
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 30 days, including Saturdays and Sundays, following the completion
of the improvement or the effective date of this article, whichever
is later. An abatement that is granted shall take effect upon the
issuance of a certificate of occupancy 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 § 3 of P.L. 1941, c.
397 (N.J.S.A. 54:4-63.3), and the omitted assessment provisions of
§ 9 of P.L. 1947, c. 413 (N.J.S.A. 54:4-63.20), and § 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 under this article (N.J.S.A. 40A:21-1 et seq.).
C.
Every properly completed application for exemption of one or more
improvements which is filed within 30 days of the completion of the
improvement shall be allowed by the Assessor not later than 30 days
of its filing.
In the event that a property owner subject to a tax agreement
shall become delinquent on local property taxes, ceases to operate
or disposes of the property or fails to meet the conditions for qualifying
for the abatement during the abatement period, the local property
taxes due for all the prior years subject to abatement and for the
current year shall be payable as if no exemption or abatement had
been granted. The Tax Collector of the Township of Logan shall notify
the property owner within 15 days of the date of disqualification
of the amount of taxes due. In the event that the subject property
has been transferred to a new owner and it is determined that the
new owner will continue to use the property pursuant to the qualifying
conditions, no tax shall be due, the exemption and abatement shall
continue, and the agreement shall remain in effect.
The Township Council hereby determines that an additional improvement,
conversion or construction completed on a property already granted
a previous exemption or abatement pursuant to this article during
the period in which the previous exemption or abatement is in effect
shall qualify for an additional exemption or abatement. The additional
improvement, conversion or construction shall be considered as separate
for purposes of calculating the exemption and abatement, 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 or construction for the purpose of determining the assessed
value of the property for which any additional abatement is to be
subtracted.
No exemption or abatement shall be granted or tax agreement
entered into pursuant to this article for any property for which property
taxes are delinquent or remain unpaid or for which penalties for nonpayment
of taxes are due. As a further condition to granting an exemption
or abatement, a property owner shall be required to waive the filing
of any tax appeal for the subject property for the life of the exemption/abatement.
Every application submitted pursuant to this article shall be
on a form prescribed by the Director of the Division of Taxation and
shall be filed with the Tax Assessor of the Township of Logan, as
a condition to approval, prior to the Township issuing a building
permit.
At the termination of an agreement for tax abatement or exemption
authorized pursuant to this article, the project shall be subject
to all applicable real property taxes as provided by state laws and
regulations and local ordinances, provided that nothing herein shall
be deemed to prohibit the project or improvement at the termination
of the agreement for tax abatement from qualifying for and receiving
the full benefits of any other tax preference provided by law.
All construction that is subject to the approved abatements
and exemptions shall be completed within two years after the date
of the Township Council approval.
Applicants for abatements and/or exemptions pursuant to this
article are in no way relieved from securing the necessary approvals
from the appropriate land use board, where applicable, pursuant to
the Unified Development Ordinance of the Township of Logan[1] in accordance with the provisions of said ordinances and
the Municipal Land Use Law, N.J.S.A. 40:55D-1 et seq.
[1]
Editor's Note: The Unified Development Ordinance, adopted
9-6-2005 by Ord. No. 18-2005, as amended, is on file in the Township
offices.
