[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:
Substantially ready for the use for which it was intended.
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.
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.
During the five-year period, the assessment on such dwellings specified in § 300-2 shall in no case, except that of damage through action of the elements sufficient to warrant a reduction, be less than the assessment thereon existing immediately prior to such home improvements.
Such amounts may be deducted from the amount determined by the
Assessor, on October 1 of any year following the date of the completion
of the improvement, to be the true taxable value of the improvement
and shall continue to be so treated for each of the five tax years
subsequent to the original determination by the Assessor.
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:
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.
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]
The officer of the County charged with the duty of assessing
real property for the purpose of general taxation.
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.
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 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.
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.
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.
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.
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.
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:
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.
