This article sets forth the procedures to be followed by the
Township in the review and consideration of applications for tax exemptions
of real property taxes pursuant to N.J.S.A. 40A:20-1 et seq. and the
administration of financial agreements authorized by the Council.
As used in this article, the following terms shall have the
meanings indicated:
ACT
The Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq.
APPLICATION
An application for a long-term tax exemption submitted to
the Township containing the information and data required to be submitted
pursuant to § 18-15A hereof.
COMPLETION
Substantially ready for the intended use for which the building
or structure is constructed, as evidenced by a temporary certificate
of occupancy or a permanent certificate of occupancy, whichever is
issued first.
ENTITY
A limited-dividend entity satisfying the qualifications set
forth in N.J.S.A. 40A:20-5, a nonprofit entity satisfying the qualifications
of N.J.S.A. 40A:20-5.1, or the New Jersey Economic Development Authority,
which seeks to enter into a financial agreement with the Township
pursuant to N.J.S.A. 40A:20-1 et seq. to undertake a project pursuant
to an adopted redevelopment plan for the redevelopment of all or any
part of a redevelopment area; or a project necessary, useful or convenient
for the relocation of residents displaced or to be displaced by the
redevelopment of all or any part of one or more redevelopment areas;
or a low- and moderate-income housing project.
PROJECT
Any work or undertaking pursuant to a redevelopment plan
adopted pursuant to the Local Redevelopment and Housing Law, N.J.S.A.
40A:12A-1 et seq., which has as its purpose the redevelopment of all
or any part of a redevelopment area, including any industrial, commercial,
residential or other use, and may include any buildings, land, including
demolition, clearance or removal of buildings from land, equipment,
facilities, or other real or personal properties which are necessary,
convenient, or desirable appurtenances, such as, but not limited to,
streets, sewers, utilities, parks, site preparation, landscaping,
and administrative, community, health, recreational, educational and
welfare facilities.
During the period of construction of a project, the Tax Assessor
and Construction Code Official shall each be responsible for oversight
of the project and the agreement as follows:
A. Permits and inspections. Upon receipt of an executed financial agreement,
the Construction Code Official shall cause permits to be issued upon
the application of the entity and shall cause inspections of all work
activity to be conducted in the manner provided by applicable Township
ordinances. The Construction Code Official shall notify the Tax Assessor
of any failure by the entity to properly apply for permits to begin
or complete construction within the time frame set forth in the financial
agreement. When permits are issued, the Construction Code Official
shall be responsible for notifying the Tax Assessor of such issuance.
B. Quarterly report to Assessor. From the date of the execution of a
financial agreement until the issuance of a permanent certificate
of occupancy for the project, the Construction Code Official shall
report to the Tax Assessor each quarter as to the status of the permit
and construction activity on the project. Upon the total or partial
completion of construction, the Construction Code Official shall issue
a certificate of occupancy in the appropriate form and shall be responsible
for filing a copy of every certificate with the Tax Assessor.
C. Assessments and taxes.
(1) When a permanent or temporary certificate of occupancy is issued
for a project granted a tax exemption pursuant to the Act, the Tax
Assessor shall reflect the improvements and land thereof, as authorized,
on the exempt property list or as otherwise required by state statute.
Further, the Tax Assessor shall exempt the assessment of all improvements
covered by the financial agreement during the period the exemption
remains in effect. Assessments for land shall remain taxable throughout
the term of the exemption, except as otherwise provided.
(2) At any time that the Tax Assessor causes the assessment on the improvements
or land of a project to be removed, in whole or in part, from taxable
to exempt status, he or she shall so notify the Tax Collector in writing
so as to insure the commencement and payment of annual service charges,
pursuant to the terms of the financial agreement.
D. Collection and audit. Upon receipt of an executed financial agreement,
the Tax Assessor shall note within his or her book of accounts a record
of the execution of the agreement and the dates provided for commencement
and completion of construction. The Tax Collector shall thereafter
continue to levy taxes and collect payment thereof on the property
until the occurrence of the following:
(1) In the event that a certificate of occupancy is issued for the project,
the Tax Collector shall immediately cease to levy or collect taxes
on the portion of the assessed value covered by the certificate of
occupancy and shall instead commence billing the entity the estimated
annual service charge (in lieu of taxes) as required by the financial
agreement. Where the financial agreement is authorized pursuant to
the Act, taxes on the value of the land shall continue to be levied
and collected according to the laws of New Jersey.
E. Certified project costs. When a certificate of occupancy for a project
is issued, in addition to the steps outlined above, the entity shall
submit to the Chief Financial Officer, the Tax Collector and the Tax
Assessor a copy of a certified total project cost audit prepared by
a certified public accountant, along with an independent and qualified
architect's certification required by the Act, within 90 days from
the date of issuance of the certificate of occupancy.
(1) The Tax Assessor shall review the certified total project cost audit
and the architect's certification and make a determination as to the
acceptability of the audit. If the audit is deemed unacceptable it
may be performed by the Township's designated auditor and the cost
thereof shall be borne by the entity. The Tax Assessor shall be responsible
for billing the entity for the cost of the audit. Once the audit is
accepted, if its findings cause any change in the basis to be used
in the determination of the annual service charge, net profit or excess
profits, the Tax Assessor shall bill the entity for any adjustment.
The Tax Assessor shall also maintain a copy of an approved certified
total project cost audit in its permanent files.
(2) Upon adoption of an ordinance authorizing an amendment to the financial
agreement, as result of the certified total project costs, the Tax
Assessor shall bill the entity for the cost of the audit services
and for any additional service charges resulting from an adjustment
of the estimated service charges, and thereafter the annual service
charges or excess profits, if owed, shall be billed to the entity.
The Township Clerk shall be responsible for distributing and filing
executed copies of the financial agreement, as amended, in the same
manner as set forth for in the financial agreement.
F. Breach of material terms. In the event that the entity fails to commence
or complete construction of the project within the time required by
the agreement, or fails to make payment of annual service charges
(in lieu of taxes) as required by the agreement, or otherwise fails
to satisfy a material condition of the agreement, the Tax Assessor
shall notify the Township Solicitor of the default by the entity.
(1) The Township Solicitor shall thereupon take steps necessary to terminate
the financial agreement and to advise the Tax Assessor and the Tax
Collector of the actions to be taken regarding the assessment and
collection of real estate taxes.
(2) The Township Solicitor shall also be responsible for the preparation
of such ordinance necessary to authorize the termination of the financial
agreement.
(3) Upon adoption of such an ordinance, the Township Clerk shall be responsible
for filing and distributing the ordinance in accordance with the procedures
established in the financial agreement and shall provide a copy of
the ordinance to the Director of the Division of Local Government
Services.