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.
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.