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City of Burlington, NJ
Burlington County
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Table of Contents
Table of Contents
Code
New Laws (5) Index
[Adopted by Ord. No. 10-1999 (Ch. 15.48 of the 1996 Municipal Code); readopted 6-14-2011 by Ord. No. 06-2011[1]]
[1]
Editor's Note: This ordinance also provided that the readoption was pursuant to P.L. 2007, c. 268.
As used in this article, the following terms shall have the meanings indicated:
ABATEMENT
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.
ASSESSOR
The officer of the City charged with the duty of assessing real property for the purpose of general taxation.
COMMERCIAL OR INDUSTRIAL STRUCTURE
A 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 Common Council determines will tend to maintain or provide gainful employment within the City, maintain or increase the tax base of the City and maintain or diversify and expand commerce within the City. It shall not include any structure or part thereof used or to be used by any business relocation from another qualifying municipality.
COMPLETION
Substantially ready for the intended use for which a building or structure is constructed, improved or converted.
CONSTRUCTION
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.
EXEMPTION
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.
IMPROVEMENT
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 proceeding 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 Common Council. In determining the value of real property, the City 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 City and the developer in accordance with the procedures set forth in this article.
An application for tax abatement shall include the following:
A. 
A general description of a 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 the 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 normally 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 City may enter into written agreements with the applicants for the abatement of local property taxes. An agreement shall provide for the applicant to pay the City 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 the taxes otherwise due;
D. 
In the fourth tax year, an amount not less than 60% of the taxes otherwise due;
E. 
In the 50th tax year, an amount not less than 80% of the 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 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 of 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 City 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 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 immediately notify the property owner and the tax collector and the 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 Assessor. 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 City and shall be filed with the Assessor 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 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.