[Adopted 12-20-1993 by Ord. No. 93-38]
This article shall be known as the "Home Improvement
Tax Exemption Program for the Southeast Quadrant."
A.
The New Jersey Legislature has enacted a law enabling
certain qualified municipalities to offer a five-year limited tax
exemption for certain home improvements, N.J.S.A. 40A:21-1 et seq.,
as amended.
B.
The southeast quadrant has previously been designated
as an eligible neighborhood for community development grants.
C.
More than 25% of the dwelling units in the southeast
quadrant are over 40 years old.
D.
The Mayor and Council of the Borough of Metuchen have
found the southeast quadrant, as defined hereinafter, to be in need
of rehabilitation and that granting these areas qualified status for
this tax exemption program will encourage homeowners to improve their
properties.
E.
The Mayor and Council hereby finds that the adoption
of this article will encourage the rehabilitation of residential properties
in the designated neighborhood of the southeast quadrant which will
improve these properties, the designated neighborhood and the entire
Borough.
As used in this article, the following terms
shall have the meanings indicated:
The Assessor of the Borough of Metuchen charged with the
duty of assessing real property for the purpose of general taxation.
Substantially ready for the use for which it was intended.
On or before October 1 of any year following the date of the completion
of the improvement, the Assessor shall determine the true taxable
value of the improvement.
Each residential living unit within a one- or two-family
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. A dwelling shall include individual residences within a horizontal
property regime or a condominium, to the extent allowed by N.J.S.A.
40A:21-3(k).
[Amended 9-15-1997 by Ord. No. 97-20]
Any portion of the Assessor's full and true value of any
improvement not regarded as increasing the taxable value of the property.
The improvement of a dwelling which does not change its permitted
use and shall include modernization, rehabilitation, renovation, alteration
or repair of a dwelling.
That neighborhood within the Borough lying to the south of
the railroad tacks formerly operated by the Lehigh Valley Railroad,
to the east of Main Street and extending in those directions to the
Borough line.
A.
Eligibility. Owners of dwellings more than 20 years old in the southeast quadrant are hereby eligible to receive a five-year property tax exemption for home improvements up to the limits set out by this article upon completing the application process delineated in Subsection B of this section.
B.
Application process. In order to receive the five-year
property tax exemption, all eligible homeowners making a home improvement
must submit a written application to the Tax Assessor on a form prescribed
by the Division of Taxation within 30 days of the completion of the
improvement.
C.
Approval. Every complete application for exemption
of one or more home improvements, filed within the time specified,
shall be approved and allowed by the Assessor.
D.
Recording. The granting of any exemption under this
article shall be recorded and made a permanent part of the official
tax records of the Borough of Metuchen. Such record must also include
a notice of the termination date of the exemption.
E.
Notice to taxpayers. The Tax Collector of the Borough
of Metuchen shall send a notice prepared or approved by the New Jersey
Department of Community Affairs describing the exemption program and
the application procedure with the mailing of annual property tax
bills to each owner of a dwelling located in the southeast quadrant
during the first year following adoption of this article.
Taxpayers fulfilling the requirements set out in § 172-6 shall be exempted for a period of five years from any increase in their assessed taxable value arising from the first $25,000 of full and true increased value of the dwelling which results from home improvements made to that dwelling so long as the dwelling is more than 20 years old; and provided, however, that during the same period, the assessment on such dwelling shall in no case, except from damage of the elements, be less than the assessment thereon existing immediately prior to such home improvements.
Additional improvements completed during a period
in which the individual dwelling is subject to a previously granted
exemption in an amount less than the maximum exemption permissible
for each unit hereunder shall be qualified for an additional exemption
under the terms and conditions herein specified; provided, however,
that in no tax year shall the total deduction for any individual dwelling
exceed the maximum amount specified herein.
The exemption set forth in this article shall
be granted only to and for the taxpayer who owns the dwelling at the
time the home improvement is completed. Exempt status under this article
shall not be transferred if the dwelling is sold during the period
of exemption. A subsequent purchaser can qualify for a full separate
exemption under this article by making further home improvements on
the dwelling after title has been vested in him or her.
