[Adopted 10-11-2011 by Ord. No. 2011-9]
The Township of Eastampton may enter into agreements with applicants
for tax abatement on commercial and industrial projects pursuant to
the provisions of P.L. 1991, c. 441 set forth in the Five-Year Exemption
and Abatement Law (N.J.S.A. 40A:21-1 et seq.), as amended.
The following words, terms and phrases, when used in this chapter,
shall have the meanings ascribed to them in this section, consistent
with the provisions of N.J.S.A. 40A:21-3, except where the context
clearly indicates a different meaning:
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.
Duration of time comprising 365 days or 366 days when the
included month of February has 29 days, that commences on the date
that an exemption or abatement for a project becomes effective.
A portion or all of a Township which has been determined
to be an area in need of rehabilitation or redevelopment pursuant
to P.L. 1991, c.441 (N.J.S.A. 40A:12A-1 et seq.).
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 Township Council determines will tend to maintain or provide
gainful employment within the Township, assist in the economic development
of the Township, maintain or increase the tax base of the Township
and maintain or diversify and expand commerce within the Township
. It shall not include any structure or part thereof used or to be
used by any business relocated from another qualifying Township.
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
The provision of a new commercial or industrial structure,
or the enlargement of the volume of an existing commercial or industrial
structure by more than 30%, but shall not mean the conversion of an
existing building or structure to another use.
That portion of the Assessor's full and true value of any
improvement, or construction not regarded as increasing the taxable
value of a property pursuant to this chapter and the Five-Year Exemption
and Abatement Law.[1]
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 human habitation or work,
and which does not change its permitted use. It shall not include
ordinary painting, repairs and replacement of maintenance items, or
an enlargement of the volume of an existing structure by more than
30%. In no case shall it include the repair of fire or other damage
to 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
chapter.
The construction or improvement of a structure in an area
in need of rehabilitation that would qualify for an exemption, or
an exemption and abatement pursuant to P.L. 1991, c.441 (N.J.S.A.
40A:12A-1 et seq.).
[1]
Editor's Note: See N.J.S.A. 40A:21-1 et seq.
Prospective applicants who own newly constructed or rehabilitated
commercial or industrial structures located in an area in need of
rehabilitation within the Township of Eastampton are entitled to apply
for a five-year tax exemption and tax abatement as provided in this
chapter.
A.
Prospective applicants for tax exemption and abatement shall submit
an application, approved by the Director of the Division of Taxation
in the Department of Treasury and currently on file with the Township,
to the Tax Assessor specifying the following:
(1)
A general description of a project for which exemption and abatement
is sought;
(2)
A legal description of all real estate necessary for the project;
(3)
Plans, drawings and other documents as may be required by Township
Council to demonstrate the structure and design of the project;
(4)
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 (if applicable);
(5)
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;
(6)
Estimates of the cost of completing such project;
(7)
A statement showing:
(a)
The real property taxes currently being assessed at the project
site;
(b)
Estimated tax payments that would be made annually by the applicant
on the project during the period of the agreement; and
(c)
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;
(8)
A description of any lease agreement between the applicant and proposed
users of the project, and a history and description of the applicant's
businesses;
(9)
Completed copy of the Township Tax Abatement Application Form E/A-1;
(10)
Such other pertinent information as the Township of Eastampton
may require.
B.
Separate applications shall be filed for each building involved in
a phased project.
C.
A preliminary application is required to be filed with the Tax Assessor
prior to the issuance of a construction permit for the project. A
final application shall be filed with the Tax Assessor within 30 days,
including Saturdays and Sundays, following the completion of the improvement
or construction.
A.
No exemption or abatement shall be granted except upon written application
to the Tax Assessor. All tax exemptions and/or tax abatements shall
be approved by ordinance of the Township Council authorizing an agreement
for tax exemption and/or abatement.
B.
Every application for exemption and abatement which is filed within
the time specified shall be allowed by the Tax Assessor and approved
by Township Council to the degree that the application is consistent
with the provisions of this chapter and the tax agreement, if any,
and provided that the construction or improvement for which the application
is made qualifies as an improvement or construction under the terms
of this chapter and the tax agreement, if any. The granting of an
exemption or exemption and abatement shall relate back to, and take
effect as of the date of completion of the project or portion or stage
of the project for which the exemption or exemption and abatement
is granted and shall continue for five annual periods from that date.
The grant of the exemption, or exemption and abatement, or tax agreement
shall be recorded and made a permanent part of the official tax records
of the Township, which record shall contain notice of the termination
date thereof.
A.
Upon approval of an ordinance authorizing an agreement for tax abatement
for a particular project, the Township Council shall enter into a
written agreement with the applicant for the abatement of local real
property taxes. The agreement shall provide for the applicant to pay
to the Township in lieu of full property tax payments an amount annually
to be computed by one, but in no case a combination, of the following
formulas:
(1)
Cost basis. The applicant shall pay to the Township in lieu of full
property tax payments an amount equal to 2% of the cost of the project.
For the purposes of the agreement, "the cost of the project" means
only the cost or fair market value of direct labor and all materials
used in the construction, expansion, or rehabilitation of all buildings,
structures, and facilities at the project site, including the costs,
if any, of land acquisition and land preparation, provision of access
roads, utilities, drainage facilities, and parking facilities, together
with architectural, engineering, legal, surveying, testing, and contractors'
fees associated with the project, which the applicant shall cause
to be certified and verified to the Township Council by an independent
and qualified architect, following the completion of the project.
(2)
Gross revenue basis. The applicant shall pay to the Township in lieu
of full property tax payments an amount annually equal to 15% of the
annual gross revenues from the project. For the purposes of the agreement,
"annual gross revenues" means the total annual gross rental and other
income payable to the owner of the project from the project. If in
any leasing, any real estate taxes or assessments on property included
in the project, any premiums for fire or other insurance on or concerning
property included in the project, any premiums for fire or other insurance
on or concerning property included in the project, or any operating
or maintenance expenses ordinarily paid by the landlord are to be
paid by the tenant, then those payments shall be computed and deemed
to be part of the rent and shall be included in the annual gross revenue.
The tax agreement shall establish the method of computing the revenues
and may establish a method of arbitration by which either the landlord
or tenant may dispute the amount of payments so included in the annual
gross revenue.
(3)
Tax phase-in basis. The applicant shall pay to the Township 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 year after completion, no payment in lieu
of taxes otherwise due;
(b)
In the second full year after completion, an amount not less
than 20% of taxes otherwise due;
(c)
In the third full year after completion, an amount not less
than 40% of taxes otherwise due;
(d)
In the fourth full year after completion, an amount not less
than 60% of taxes otherwise due;
(e)
In the fifth full year after completion, an amount not less
than 80% of taxes otherwise due.
B.
If, during the term of the tax exemption and/or abatement, the property
owner disposes of the property, the tax which would otherwise have
been payable for each tax year shall become due and payable unless
the Township Council determines by resolution that the subsequent
owner will continue to use the property pursuant to the conditions
which qualified the property.
C.
No exemption or abatement shall be granted or tax agreement entered
into with respect to any property for which property taxes are delinquent
or remain unpaid or for which penalties for nonpayment of taxes are
due or for which other municipal charges are due.
D.
All tax agreements entered into pursuant to this chapter shall be
subject to the condition that all taxes and other municipal charges
shall be kept current to the extent the same are assessed. In the
event that taxes and charges go unpaid for more than six months beyond
the date upon which such amounts become due, then the agreement shall
terminate and the property restored to full assessment.
E.
All tax agreements entered into by virtue of this chapter shall be
in effect for no more than five full tax years from the date of completion
of the project. Within 30 days of the execution of a tax agreement,
the Township shall forward a copy of said agreement to the Director
of the Division of Local Government Services in the Department of
Community Affairs.
At the termination of an agreement for tax exemption or abatement
authorized pursuant to this chapter, the project shall be subject
to all applicable real property taxes, as provided by state and local
law and regulations, provided that nothing herein shall be deemed
to prohibit the project or improvement at the termination of the agreement
for tax abatement from qualifying and receiving the full benefits
of any other tax preference as provided by law.
