[Adopted 8-3-1995 by Ord. No. 438 (Ch. 89, Art. II, of the
1977 Township Code); readopted 9-6-2012 by Ord. No. 695]
As used in this article, the following terms shall have the
meanings indicated:
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.).
The officer of a taxing district charged with the duty of
assessing real property for the purpose of general taxation.
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.); P.L. 1977,
c. 12 (N.J.S.A. 54:4-3.95 et seq.); or P.L. 1979, c. 233 (N.J.S.A.
54:4-3.121 et seq.).[2]
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.
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 or increase of the volume of an existing
commercial or industrial structure by more than 30%. Construction
shall also include 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 commercial or industrial structure.
When used with respect to exemptions for commercial or industrial
structures, only the cost or fair market value of direct labor and
materials used in improving a commercial or industrial structure,
or of converting another building or structure to a commercial or
industrial structure, or of constructing a commercial or industrial
structure, 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.
That portion of the Assessor's full and true value of
any improvements, 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 commerce or work and which
does not change its permitted use. It shall also not include ordinary
painting, repairs and replacement of maintenance items or an enlargement
of the volume or increase in assessed value of an existing structure
by less 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.
[1]
Editor's Note: N.J.S.A. 40:55-21.1 et seq. was repealed
by P.L. 1992, c. 79, § 59. See now N.J.S.A. 40A:12A-1 et
seq.
[2]
Editor's Note: N.J.S.A. 54:4-3.72 et seq., 54:4-3.95
et seq. and 54:4-3.121 et seq. were repealed by P.L. 1991, c. 441,
§ 22, effective 1-18-1992. See now N.J.S.A. 40A:21-1 et
seq.
[Amended 9-18-2016 by Ord. No. 745]
An exemption from taxation of improvements to commercial or
industrial structures shall be allowed so that in determining the
value of the real property, the municipality may consider 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 aforesaid 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.
Exemptions from taxation for construction of commercial or industrial
structures shall be allowed as set forth in N.J.S.A. 40A:21-8 and
in accordance with the provisions of N.J.S.A. 40A:21-9 through 40A:21-12,
as hereinafter set forth.
Applicants for tax exemption for construction of commercial
or industrial structures or improvements shall provide the Township
Committee of the Township of Upper Deerfield with an application setting
forth the following:
A.
A general description of the project for which exemption is sought.
B.
A legal description, survey and deed of all real estate necessary
for the project.
C.
Plans, drawings and other documents as may be required by the Township
Committee to demonstrate the structure and design of the project.
D.
A description of the number, classes and types 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 of the project
and a description of the benefits to be realized by the applicant
if a tax exemption 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 be made annually by the applicant
on the project during the period of the agreement.
(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 exemption.
H.
If the project is a commercial or industrial structure, a description
and copy of any lease agreements between the applicant and proposed
users of the project and a history and description of the user's
businesses.
I.
Such other pertinent information as the Township Committee may require.
The Township Committee of the Township of Upper Deerfield may
authorize an exemption of local real property taxes pursuant to a
tax phase-in schedule. Qualifying projects for improvements or construction
to commercial or industrial projects shall be entitled to no more
than a five-year tax exemption based upon the full assessed value
of the property or improvements constructed thereon in accordance
with the tax phase-in schedule hereinafter set forth, and tax payments
shall be made in an amount equal to a percentage of taxes otherwise
due according to the following schedule:
A.
In the first tax year after completion, no payment of taxes otherwise
due.
B.
In the second year, an amount not less than 20% of taxes otherwise
due.
C.
In the third year, an amount not less than 40% of taxes otherwise
due.
D.
In the fourth year, an amount not less than 60% of taxes otherwise
due.
E.
In the fifth year, an amount not less than 80% of taxes otherwise
due.
A.
Any tax exemptions permitted by the Township of Upper Deerfield pursuant
to N.J.S.A. 40A:21-9 through 40A:21-12 shall be in effect for a period
of no longer than five full tax years next following the date of completion
of the project.
B.
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 required under this section shall no longer apply.
C.
Within 30 days after the execution of a tax agreement, a municipality
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 Township shall notify the property owner and 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 additional 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, conversion or construction,
the true taxable value thereof. Except for projects subject to tax
agreement pursuant to N.J.S.A. 40A:21-9 through 40A:21-12, 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,
conversion or construction not allowed an exemption pursuant to this
article. Subject to the provisions of 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.
An additional improvement, conversion or construction completed
on a property granted a previous exemption pursuant to this article
during the period in which such previous exemption is in effect shall
be qualified for an exemption, just as if such property had not received
a previous exemption. In such case, the additional improvement, conversion
or construction shall be considered as separate for the purposes of
calculating exemptions pursuant to this article, except that the assessed
value of any previous improvement, conversion, alteration 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 exemption
is to be subtracted.
No exemption shall be granted or continued, 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 beyond four tax quarters beyond the date on which
such taxes shall be due.
A.
No exemption shall be granted pursuant to this article except upon
written application therefor filed with and approved by the assessor
of the taxing district wherein the improvement, conversion, alteration
or construction is made. 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 Township of
Upper Deerfield and shall be filed with the Assessor within 30 days,
including Saturdays and Sundays, following the completion of the improvement,
conversion, alteration or construction.
B.
Every application for exemption within the Township of Upper Deerfield
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, conversion,
alteration or construction for which the application is made qualifies
as an improvement, a conversion, alteration or construction pursuant
to the provisions of this article.
C.
The granting of an exemption 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.
The exemption of real property taxes provided pursuant to this
article shall apply to property taxes levied for municipal purposes,
school purposes, county government purposes and for the purposes of
finding any other property tax exemptions.
The Township of Upper Deerfield, pursuant to N.J.S.A. 40A:21-20,
shall include the notice in the mailing of annual property tax bills
to each owner of a building located in an area in which exemptions
may be allowed pursuant to this article during the first year following
adoption of the article.
A.
The Tax Assessor of the Township of Upper Deerfield shall report,
on or before October of each year, to the Director of the Division
of Local Government Services in the Department of Community Affairs
and to the Director of the Division of Taxation in the Department
of the Treasury the total amount of real property taxes exempted within
the Township in the current tax year for each of the following:
B.
The report shall state the total amount of tax payments made according
to the formula utilized by the Township and the difference between
that total amount and the total amount of real property taxes which
would have been paid on the project had the tax exemption not been
in effect for the current tax year.
This article shall take effect retroactively to March 1, 1995.
Any construction or improvements completed between the effective date
of this article and its date of adoption shall otherwise be eligible
for exemptions as provided herein if application is made therefor
within 30 days from the date of final adoption of this article.
