[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:
AREA IN NEED OF REHABILITATION
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.).
ASSESSOR
The officer of a taxing district charged with the duty of assessing real property for the purpose of general taxation.
BLIGHTED AREA
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]
COMMERCIAL OR INDUSTRIAL STRUCTURE
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.
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 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.
CONVERSION or CONVERSION ALTERATION
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.
COST
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.
EXEMPTION
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.
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 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.
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.
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:
(1) 
Improvements of commercial or industrial structures.
(2) 
Construction of commercial or industrial structures under tax agreements.
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.