[Adopted 8-28-2012 by Ord. No. 12-OR-022]
A.
The Council, pursuant to Article VIII, Section I, Paragraph 6 of
the New Jersey Constitution, declares eligible for exemption from
taxation certain commercial and industrial structures determined by
resolution as being in need of rehabilitation and for which a tax
agreement has been entered into.
B.
This article is readopted so that no application for an exemption
shall be filed to take effect in the 11th full tax year following
the adoption of this article on November 22, 2022, or any tax year
occurring thereafter, unless this article is again readopted by the
Council.
[Amended 11-22-2022 by Ord. No. 2022-OR-032]
As used in this article, the following terms shall have the
meanings indicated:
A 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 for a project becomes effective pursuant to
N.J.S.A. 40A:21-16.
The Township's tax assessor.
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 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 Township. It
shall not include any structure, or part thereof, used or to be used
by any business relocated from another qualifying municipality unless:
The total square footage of the floor area of the structure,
or part thereof, used or to be used by the business at the new site,
together with the total square footage of the land used or to be used
by the business at the new site, exceeds the total square footage
of that utilized by the business at its current site or operations
by at least 10%; and
The property that the business is relocating to has been the
subject of a remedial action, costing in excess of $250,000, performed
pursuant to an administrative consent order entered into pursuant
to authority vested in the Commissioner of Environmental Protection
under N.J.S.A. 13:1D-1 et seq., the Water Pollution Control Act, N.J.S.A.
58:10A-1 et seq., the Solid Waste Management Act, N.J.S.A. 13:1E-1
et seq., and the Spill Compensation and Control Act, N.J.S.A. 58:10-23.11
et seq.
Substantially ready for the intended use for which a commercial
or industrial 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 the Tax Exemption 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 for work, and which does not change its
permitted use. For 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
more than 30%. In no case shall it include the repair of fire or other
damage to the 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 the Tax Exemption Law.
The construction, improvement or conversion of a structure
in an area in need of rehabilitation that would qualify for an exemption
pursuant to the Tax Exemption Law.
[1]
Editor's Note: See N.J.S.A. 54:4-3.3 et seq.
A.
The Township Council is empowered to grant, in its discretion, approval
of an application for tax exemption and to enter into a tax agreement
for the project.
B.
In determining the value of real property, the Township Council shall
regard 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 market value of the property to which the
improvements are made is increased thereby. During the 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.
No exemption 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.
The exemption of real property taxes herein applies to property
taxes levied for municipal purposes, school purposes, county government
purposes and for the purposes of funding any other property tax exemptions
or abatements.
An applicant for a tax exemption for new construction of commercial
or industrial structures shall provide to the Township Clerk the original
and 10 copies of the application which shall set forth:
A.
A general description of a project for which the exemption is sought.
B.
A legal description of all real estate necessary for the project.
C.
Plans, drawings and other documents as may be required by the Township
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 the tax exemption 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 the real property taxes currently being assessed
at the project site, estimated tax payments that would be made annually
by the applicant on the project during the period of the agreement
and 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.
A description of any lease agreements between the applicant and the
proposed users of the project and a history and description of the
users' businesses.
I.
A certification that if granted a tax exemption, unless the Township
increases the assessed value of the property as the result of a revaluation
or reassessment, the applicant agrees not to file a tax appeal challenging
the assessment for the term of the exemption.
J.
Such other pertinent information as the Township Council may require
or which the applicant may wish to submit.
Upon adoption of an ordinance authorizing a tax agreement for
a particular project, the Township Council may enter into a written
agreement with the applicant for the exemption 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:
A.
Cost basis: The agreement may provide for the applicant to 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.
B.
Gross revenue basis: The agreement may provide for the applicant
to 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, or
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 to be included in the annual gross
revenue.
C.
Tax phase-in basis: The agreement may provide for the applicant to
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:
(1)
In the first full year after completion, no payment in lieu of taxes
otherwise due.
(2)
In the second full year after completion, an amount not less than
20% of taxes otherwise due.
(3)
In the third full year after completion, an amount not less than
40% of the taxes otherwise due.
(4)
In the fourth full year after completion, an amount not less than
60% of the taxes otherwise due.
(5)
In the fifth full year after completion, an amount not less than
80% of taxes otherwise due.
A.
All tax agreements entered into by the Township shall be in effect
for no more than five full years next following the date of completion
of the project and shall be subject to all applicable federal, state
and local laws and regulations on pollution control, worker safety,
discrimination in employment, housing provision, zoning, planning
and building code requirements.
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 Township for
determining equalization for Burlington 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 shall no longer apply.
C.
Within 30 days after execution of a tax agreement, the Township Clerk
shall forward a copy of the agreement to the Director of the Division
of Local Government Services in the Department of Communities Affairs.
An additional improvement or construction, completed on a property
granted a previous exemption 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. The additional
improvement or construction shall be considered as separate for the
purpose of calculating the exemption, except that the assessed value
of any previous improvement or construction shall be added to the
assessed valuation as it was prior to that improvement or construction
for the purpose of determining the assessed valuation of the property
from which any additional exemption is to be subtracted.
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 Council 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 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.
