[Adopted 12-4-2019 by Ord. No. 2019-25[1]]
[1]
Editor's Note: This ordinance superseded former Art. III,
Five-Year Tax Exemption and Abatement for Commercial or Industrial
Structures, adopted 4-18-2012 by Ord. No. 2012-13.
B.
The Township Council hereby determines to utilize the authority granted
under Article VIII, Section I, Paragraph 6, of the New Jersey Constitution
to establish the eligibility of dwellings, and commercial and industrial
structures for exemptions as provided in the within article and as
permitted by the Act throughout the entire municipality.
This article authorizes the Township of Florence to grant exemptions
up to a five-year period to commence and take effect in the 2020 tax
year and thereafter. This article shall lapse, unless readopted, in
the 2029 tax year and no exemptions shall be granted after December
31, 2029, tax year without such readoption.
A.
EXEMPTION
QUALIFYING COMMERCIAL OR INDUSTRIAL STRUCTURES
(1)
(2)
For purposes of this article, the following definitions are incorporated
herein:
That portion of the assessor's full and true value of
any improvement, conversion, alteration, or construction not regarded
as increasing the taxable value of a property pursuant to the Act.[1]
Refer to structures or parts 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 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.
Not included as qualifying commercial or industrial structures
are structures or parts 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 of operations by at least 10%; and the
property that the business is relocating to has been the subject of
a remedial action plan 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 P.L.
1970, c. 33 (N.J.S.A. 13:10-1 et seq.), the Water Pollution Control
Act, P.L. 1977, c. 74 (N.J.S.A. 58:10A-1 et seq.), the Solid Waste
Management Act, P.L. 1970, c. 39 (N.J.S.A. 13:1E-1 et seq.), and the
Spill Compensation and Control Act, P.L. 1976, c. 141 (N.J.S.A. 58:10-23.11
et seq.).
[1]
Editor's Note: "The Act" refers to the Five-Year Exemption
and Tax Abatement Law, N.J.S.A. 40A:21-1 et seq.
This article authorizes the exemption for up to the assessor's full and true value of the "improvements" to existing commercial and industrial structures as may be granted only by the governing body on an individual basis after review, evaluation and approval of each application by resolution. The application procedure for seeking such an exemption shall be consistent with the procedures outlined in § 129-11.3 of this article. However, the granting of an exemption under this section shall not require the adoption of an ordinance nor a written tax agreement. An "improvement" is defined under N.J.S.A. 40A:21-3n, which definition is fully incorporated herein, and includes the renovation, rehabilitation, repair, and alteration of an existing building that improves the safety and attractiveness of the building, but does not include ordinary painting, repairs, and replacement of maintenance items nor the enlargement of the volume of an existing structure by more than 30%.
The Township Council hereby further determines to grant exemptions
from taxation for the construction of commercial and industrial structures
pursuant to the procedures set forth in the Act[1] and in this article. The term "construction" is defined
under N.J.S.A. 40A:21-3g, which definition is fully incorporated herein,
and includes the construction of a new commercial or industrial building
or the enlargement of an existing commercial or industrial building
by more than 30%, but shall not mean the conversion of an existing
building or structure to another use.
[1]
Editor's Note: "The Act" refers to the Five-Year Exemption
and Tax Abatement Law, N.J.S.A. 40A:21-1 et seq.
For purposes of §§ 129-11 and 129-11.1, the term "commercial structure" relates to office, retail and like uses, but does not include multiple dwelling type (three or more rental units) structures. In the event a structure includes a mix of commercial and multiple dwelling uses, the exemption shall only apply to that component of the structure relating to commercial, as opposed to multiple dwelling, use.
Applicants for tax exemption under §§ 129-11 and 129-11.1 above shall provide the governing body of the Township of Florence with an application setting forth the following information:
A.
A general description of a project for which 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 governing
body 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 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.
A description of any lease agreement 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 governing body may require
on a case-by-case basis.
J.
The original and six copies of the application shall be submitted
to the Clerk of the Township Council no later than 30 days following
completion of the project, including Saturdays and Sundays. An application
may be filed with the Township Clerk any time prior to such deadline.
"Completion" means that the subject improvement is substantially ready
for the intended use for which it is constructed. Such completion
may be evidenced by the issuance of a certificate of occupancy or
like document by the Township's building inspectors.
K.
The Council shall have full discretion to accept, deny or revise
the application and shall not be subject to any time limitations to
make a determination.
L.
Notwithstanding the deadline for filing exemption applications reflected in Subsection J herein, which deadline is statutorily mandated, this article is adopted with the intent of encouraging applicants to seek approvals of tax exemptions for eligible properties as early as possible, preferably prior to commencement of construction.
A.
If the Council grants the exemption for the project, the Council
shall adopt an ordinance authorizing a tax agreement for a particular
project. The Council shall enter into a written agreement with an
applicant for the exemption of local property taxes. The agreement
shall provide for the applicant to pay the municipality in lieu of
full property taxes an annual amount to be computed in accordance
with N.J.S.A. 40A:21-10 utilizing one of the following: a) the cost
basis; b) the gross revenue basis; or c) the tax phase-in basis, as
set forth therein.
B.
All tax agreements entered into shall be in effect for no more than
the five full years next following the date of completion of the project.
C.
All projects subject to tax agreement as provided herein 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.
D.
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 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.
The Clerk of the Township of Florence is authorized to forward
a copy of all executed agreements entered into pursuant to this article
to the Director of the Division of Local Government Services in the
Department of Community Affairs within 30 days of the date of execution.
In the event a property owner subject to a tax agreement ceases
to operate or disposes of the property or fails to meet the conditions
for qualifying for the exemption, the local property taxes due for
all the prior years subject to exemption and for the current year
shall be payable as if no exemption had been granted. The Tax Collector
of the Township of Florence shall notify the property owner within
15 days of the date of disqualification of the amount of taxes due.
In the event the subject property has been transferred to a new owner
and it is determined that the new owner will continue to use the property
pursuant to the qualifying conditions, and no tax or payment in lieu
of tax shall be delinquent, the exemption shall continue and the agreement
shall remain in effect.
The Township Council hereby determines that an additional improvement,
conversion or construction completed on a property already granted
a previous exemption pursuant to this article during the period in
which the previous exemption is in effect shall qualify for an additional
exemption under the standards identified in this article. The additional
improvement, conversion or construction shall be considered as separate
for purposes of calculating the exemption, except that the assessed
value of any previous improvement, conversion or construction shall
be added to the assessed valuation as it was prior to that improvement,
conversion or construction for the purpose of determining the assessed
value of the property for which any additional exemption is to be
subtracted.
No exemption shall be granted or tax agreement entered into
pursuant to this article for any property for which property taxes
are delinquent or remain unpaid, or for which penalties for nonpayment
of taxes are due.
An applicant for tax exemption under this article shall agree,
as a condition to receiving the exemption, not to file a tax appeal
challenging the assessment granted under this article.
In the event that the Township implements a revaluation or reassessment
during the exemption period for any property, the exemption shall
continue to apply but at a valuation level consistent with the revaluation
or reassessment.
The granting of an exemption for a particular property shall
not prejudice the right of the Township to appropriately examine and
revise the assessment during the five-year exemption period in the
event the base assessment is found to be improperly valued and assessed.
At the termination of an agreement for tax exemption authorized
pursuant to this article, the project or improvement shall be subject
to all applicable real property taxes as provided by state laws and
regulations and local ordinances, provided that nothing herein shall
be deemed to prohibit the project or improvement at the termination
of the agreement for tax exemption from qualifying for and receiving
the full benefits of any other tax preference provided by law.
This article shall take effect for tax year 2020 upon final
passage, approval and publication as provided by law.
