[Adopted 8-23-2012 by Ord. No. 2012-11]
A. 
The Township hereby determines to utilize the authority granted under Article VIII, Section I, Paragraph 6, of the New Jersey Constitution to establish the eligibility of commercial and industrial structures for five-year tax exemptions and abatements as authorized by N.J.S.A. 40A:21-1 et seq., but only to the extent set forth herein.
B. 
This article authorizes the Township of Maple Shade to grant exemptions up to a five-year period to commence and take effect in the 2012 tax year and thereafter. This article shall lapse, unless readopted, in the 2021 tax year and no exemptions shall be granted after December 31, 2021 tax year without such readoption.
A. 
The definitions contained in N.J.S.A. 40A:21-3 are incorporated herein by reference as if set forth at length. As used in this article, words shall have the meanings as so defined unless a different meaning is expressed.
B. 
The following words, terms, phrases, when used in this article shall have the meaning ascribed to them in this subsection, consistent with the provisions of N.J.S.A. 40A:21-3, except where the context clearly indicates a different meaning:
EXEMPTION
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]
QUALIFYING COMMERCIAL OR INDUSTRIAL STRUCTURE
Shall refer to:
(1) 
A structure 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. 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 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. 13:1D-1 et al.), 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.).
(2) 
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.
[1]
Editor's Note: According to the preamble of Ord. No. 2012-11, "the Act" refers to the Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1 et seq.
A. 
For properties located in designated areas of rehabilitation or redevelopment, tax exemptions are available for the Assessor's full and true value of "improvements" to existing qualifying commercial and industrial structures as may be granted 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 § 181-4. 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%.
B. 
For properties located in designated areas of rehabilitation or redevelopment, tax exemptions are available for the construction of commercial and industrial structures pursuant to the procedures set forth in the Act 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.
A. 
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 the 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) 
Such other pertinent information as the Township of Maple Shade 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 Township Tax Assessor prior to the issuance of a construction permit for the project. The final application shall be filed with the Township Clerk and Tax Assessor no later than 30 days, including Saturdays and Sundays, following the completion of the improvement or construction. "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.
D. 
The Township 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.
E. 
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.
A. 
If the Township Council grants the exemption for the project, the Council shall adopt an ordinance authorizing a tax agreement for the 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. 
The Clerk of the Township of Maple Shade 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.
The percentage which the payment in lieu of taxes bears to the property taxes which would have been paid had an 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 apportionment and school aid during the term of the tax abatement agreement covering the property.
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 Township Tax Collector 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.
A. 
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.
B. 
All tax agreements entered into pursuant to this article 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. This condition shall be binding and effective, notwithstanding the absence of any reference to the same in the tax agreement.
A. 
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.
B. 
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.
C. 
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 or abatement authorized pursuant to this article, 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.
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.
A. 
The following fees are to be paid at the time that an application is submitted for tax exemption and/or exemption and abatement.
B. 
The following fees are based on the estimated cost of the improvement:
Estimated Cost
Fee
0 to $50,000
1%
$50,001 to $150,000
1.2%
$150,001 to $300,000
1.4%
$300,001 to $500,000
1.6%
$500,001 and above
1.8%
C. 
Provided, however, that the maximum fee shall not exceed $10,000 on a single tax exemption or tax exemption and abatement application.
[Added 10-24-2013 by Ord. No. 2013-15]