[HISTORY: Adopted by the Mayor and Council of the Borough of Swedesboro as indicated in article histories. Amendments noted where applicable.]
[Adopted 10-2-1978[1] (Ch. 104, Art. I, of the 1982 Code)]
[1]
Editor's Note: The preamble to this ordinance read as follows:
"Whereas, the Mayor and Borough Council of the Borough of Swedesboro has determined that the Borough of Swedesboro, throughout the municipality, is generally comprised of dwelling units more than 20 years old, many of which are in need of rehabilitation, and that it is in the best interest of the Borough of Swedesboro to encourage to the fullest extent the maintenance and preservation of the older homes within the Borough, and for that reason have petitioned the Gloucester County Planning Board to declare the Borough a 'qualified municipality' entitled to exempt from taxation the first $4,000 of improvements per dwelling units on houses more than 20 years old for a period of five years, all pursuant to Public Law 1977, Chapter 284 (N.J.S.A. 54:4-3.72 to 54:4-3.78), and,
"Whereas, the Gloucester County Planning Board by resolution dated June 20, 1973, has found that the Borough of Swedesboro is a 'qualified municipality' within the meaning of the above-cited law,
"Now therefore be it ordained as follows:"
For the purpose of this article, the following definitions shall apply:
COMPLETION
Substantially ready for the use for which it was intended.
DWELLING
Any 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.
HOME IMPROVEMENT
The improvement of a dwelling which does not change its permitted use and shall include the modernization, rehabilitation, renovation, alteration or repair of a dwelling.
[Amended 12-21-1987]
In determining the value of real property for the purposes of taxation, the first $5,000 in the County Assessor's full and true value of home improvements for each dwelling unit primarily and directly affected by a home improvement in any single- or multiple-dwelling property more than 20 years old shall be viewed as not increasing the value of the property for a period of five years, notwithstanding that the value of the dwelling to which such improvements are made is increased thereby.
Additional improvements completed during a period in which the improved property is subject to previously granted exemption privileges in an amount less than the maximum deductions permissible hereunder shall be qualified for additional deduction privileges under the terms and conditions herein specified; provided, however, that in no tax year shall the total deductions for any single property exceed the maximum amount specified in § 300-2 hereinabove.
No exemption authorized pursuant to the provisions of this article shall be granted or allowed except upon written application therefor filed with and approved by the County Assessor. Every such application shall be on a form prescribed by the Director of the Division of Taxation, Department of the Treasury, and shall be filed with the Assessor within 30 days, including Saturdays and Sundays, following the completion of the improvement.
The granting of any such exemption shall be recorded and made a permanent part of the official tax records of the Borough, which record shall contain a notice of the termination date of the exemption and the consequences of transfer of title.
[Adopted 8-20-2007 by Ord. No. 24-2007[1]]
[1]
Editor's Note: The preamble to this ordinance read as follows:
"Whereas, the Borough of Swedesboro desires to authorize procedures whereby the Borough of Swedesboro may allow five-year exemptions and abatements for taxes for rehabilitation and construction projects within the commercial and industrial zones as set forth on the Master Plan of the Borough of Swedesboro; and"
"Whereas, pursuant to the Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1 et seq., tax exemptions and abatements are permitted for rehabilitation and development; and"
"Whereas, the economic conditions of the Borough of Swedesboro prompted the Borough Council of the Borough of Swedesboro to direct the Planning Board of the Borough of Swedesboro to adopt and recommend a Redevelopment Plan on behalf of the Borough of Swedesboro in order to promote improvements to commercial and industrial structures within the Borough of Swedesboro and to encourage new development within commercial and industrial areas of the Borough of Swedesboro; and"
"Whereas, the Planning Board of the Borough of Swedesboro had conducted a preliminary investigation to determine areas in need of redevelopment and has recommended that the Borough Council adopt the Redevelopment Area and Plan pursuant to the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq.; and”
"Whereas, pursuant to Borough of Swedesboro Ordinance O-2005-9, the Borough Council of the Borough of Swedesboro adopted the Redevelopment Area and Plan recommended by the Planning Board of the Borough of Swedesboro; and"
"Whereas, it is therefore appropriate for the Borough Council of the Borough of Swedesboro to authorize the utilization of five-year tax exemptions and abatements pursuant to the provisions of N.J.S.A. 40A:21-1 et seq.; and"
"Now, therefore, be it ordained by the Borough Council of the Borough of Swedesboro as follows:"
As used in this article, the following terms shall have the meanings indicated:
ABATEMENT
That portion of the assessed value of a property as it existed prior to construction, improvement or conversion of a building or structure thereon, which is exempted from taxation pursuant to this article.
AREA IN NEED OF REHABILITATION
A portion or all of the Borough of Swedesboro 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 al.), a "blighted area" as 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]
ASSESSOR
The officer of the County charged with the duty of assessing real property for the purpose of general taxation.
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 Borough Council of the Borough of Swedesboro determines will tend to maintain or provide gainful employment within the Borough, assist in the economic development of the Borough, maintain or increase the tax base of the Borough and maintain or diversify and expand commerce within the Borough.
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 assessed value of an existing commercial or industrial structure by more than 30%. Construction shall also include the 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 guest house, 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 and abatements 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, including any architectural, engineering, and contractor's fees associated therewith, as the owner of the property shall cause to be certified to the Borough Council of the Borough of Swedesboro 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 alterations, 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. 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 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 L. 1992, c. 79.
[2]
Editor's Note: N.J.S.A. 54:4-3.72 et seq., N.J.S.A. 54:4-3.95 et seq. and N.J.S.A. 54:4-3.121 et seq. were repealed L. 1991, c. 441.
An exemption from taxation of improvements to commercial or industrial structures within the commercial or industrial zones as set forth in the Master Plan of the Borough of Swedesboro shall be allowed so that in determining the value of real property the Borough of Swedesboro may regard by resolution of the Borough Council 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.
Tax agreements for exemptions and abatements 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 provisions of N.J.S.A. 40A:21-9 through 40A:21-12.
Applicants for tax exemption and abatement for new construction of commercial or industrial structures shall provide the Borough Council of the Borough of Swedesboro with an application setting forth the following:
A. 
A general description of a project for which exemption and abatement 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 Borough Council 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 completion of the project;
E. 
A statement of the reasons for seeking tax exemption and 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 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. 
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 users' businesses;
I. 
Such other pertinent information as the Borough Council may require.
The Borough of Swedesboro may enter into written agreements with applicants for the exemption and abatement of local real property taxes pursuant to the tax phase-in schedule hereinafter set forth. The applicant shall pay to the Borough of Swedesboro 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 no less than 20% of taxes otherwise due;
C. 
In the third tax year, an amount not less than 40% of taxes otherwise due;
D. 
In the fourth tax 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 agreement permitted by the Borough of Swedesboro 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. 
All projects subject to the tax agreements as provided herein shall be subject to all applicable federal, state and local laws and regulations or pollution control, worker safety, discrimination in employment, housing provision, 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 exemption and 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 Borough 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.
D. 
Within 30 days after the execution of a tax agreement, the Borough of Swedesboro 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 and abatement had been granted. The Borough of Swedesboro 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 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, 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 a tax agreement, pursuant to N.J.S.A. 40A:21-9 through 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 or abatement pursuant to this article during the period in which such previous exemption or abatement is in effect shall be qualified for an exemption or exemption and abatement, just as if such property had not received a previous exemption or abatement. In such case, the additional improvement, conversion or construction shall be considered as separate for the purposes of calculating exemptions and abatements 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 abatement is to be subtracted.
No exemption or abatement shall be granted, or tax agreement entered into, 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 or abatement shall be granted pursuant to this article except upon written application therefor filed with and approved by the County Assessor. 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 Borough of Swedesboro, 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 or exemption and abatement, within the Borough of Swedesboro 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 or the tax agreement, 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 and the tax agreement, if any.
C. 
The granting of an exemption or exemption and abatement, or tax agreement shall be recorded and made a permanent part of the official tax records of the Borough of Swedesboro, which record shall contain a notice of the termination date thereof.
The exemption and abatement of real property taxes provided pursuant to this article shall apply to property taxes levied for Borough purposes, school purposes, county government purposes and for the purposes of funding any other property tax exemptions or abatements.
The Borough of Swedesboro, pursuant to N.J.S.A. 40A:21-20, shall include the appropriate notice in the mailing of annual property tax bills to each owner of a property located in an area in which exemptions or exemptions and abatements may be allowed pursuant to this article during the first year following adoption of this article.
A. 
The County Tax Assessor shall report, on or before October 1 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 and the total amount abated within the Borough 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. 
In the case of Subsection A(2) above, the report shall state instead the total amount of payments made in lieu of taxes according to the formula utilized by the Borough, 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 agreement not been in effect for the current tax year.
This article shall take effect retroactively to January 1, 2007. Any construction or improvements completed between the effective date of this article and its date of adoption shall otherwise be eligible for exemption and abatement as provided herein if application is made therefor within 30 days from the date of final adoption of this article.