[Adopted 10-2-2014 by Ord. No. 08-14]
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.
The Borough hereby authorizes the utilization of tax abatements in accordance with Article VIII, Section I, Paragraph 6, of the New Jersey Constitution and establishes the eligibility of commercial and industrial structures for five-year tax abatements to the maximum degree as authorized by N.J.S.A. 40A:21-1 et seq.
A.
Improvements to existing commercial and industrial structures are
eligible for tax abatement for a period of five years.
B.
Tax abatements may only be approved by resolution of the Board of
Commissioners. Upon approval, the Borough, in determining value, 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.
C.
An abatement under this section is to be granted notwithstanding
that the value of the property to which the improvement is made is
increased thereby. During the abatement 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.
A.
New construction of commercial and industrial structures is eligible
for tax abatement for a period of five years. This abatement may only
be approved by ordinance of the Board of Commissioners.
B.
Applicants for tax abatement on new construction shall provide the
Board of Commissioners with an application setting forth the following
information:
(1)
A general description of the project for which 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 Board
of Commissioners 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.
(5)
A statement of the reasons for seeking tax abatement on the project
and a description of the benefits to be realized by the applicant
if a tax abatement is granted.
(6)
A good-faith estimate of the cost of completing such project, together
with the expected method or plan of financing the improvements.
(7)
A construction time schedule and projected time schedule.
(8)
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 or
expiration of the tax agreement.
(9)
If the project is a commercial or industrial structure, a description
of any lease agreement between the applicant and proposed users of
the project and a history and description of the users' businesses.
(10)
A disclosure statement of the interests of all parties, including
subsidiary companies, in the property project.
(11)
The owner shall sign the application and certify as to the truth
and accuracy of the contents thereof.
C.
Agreement.
(1)
If the Board of Commissioners approves the abatement, the owner shall
enter into a written agreement with the Borough to pay a tax on the
improvements in an amount equal to a percentage of taxes otherwise
due according to the following schedule:
(a)
In the first full tax year after completion, no payment of taxes
due.
(b)
In the second tax year, an amount not less than 20% of taxes
otherwise due.
(c)
In the third tax year, an amount not less than 40% of taxes
otherwise due.
(d)
In the fourth tax year, an amount not less than 60% of taxes
otherwise due.
(e)
In the fifth tax year, an amount not less than 80% of taxes
otherwise due.
(f)
In the sixth tax year and each year thereafter, an amount of
not less than 100% of taxes otherwise due.
(2)
The agreement shall provide that the tax shall be billed and collected
in the same manner as any conventional taxes, and any arrearages shall
accrue that rate of interest charged for delinquent real estate taxes.
D.
In the event that a property owner subject to a tax abatement agreement
ceases to operate or disposes of the property or fails to meet the
conditions for qualifying for the abatement, the local property taxes
due for all the prior years subject to abatement and for the current
year shall be payable as if no abatement had been granted. The Tax
Collector shall notify the property owner and the Board of Commissioners
within 15 days of the date of disqualification of the amount of taxes
due. In the event that the subject property has been transferred to
a new owner and it is determined that a new owner will continue to
use the property pursuant to the qualifying conditions, no additional
tax shall be due, the abatement shall continue and the agreement shall
remain in effect.
E.
The Borough Clerk shall forward a copy of all tax abatement agreements
to the Director of the Division of Local Government Services in the
Department of Community Affairs within 30 days of the date of execution.
An additional improvement or construction, completed on a property
granted a previous abatement during the period in which such previous
abatement was in effect, shall be qualified for an abatement, just
as if such property had not received a previous abatement. In such
case, the additional improvement or construction shall be considered
as separate for the purposes of calculating abatements, 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 abatement is to be subtracted.
Every application for abatement and every abatement granted
shall be subject to all the provisions of N.J.S.A. 40A:21-1 et seq.,
and all rules and regulations issued thereunder.
All tax abatement agreements shall provide that the applicant
is subject to all federal, state, and local laws and regulations.
If during any tax year prior to the termination of the tax abatement
agreement, the applicant ceases to operate or disposes of the property
or otherwise fails to meet the conditions of eligibility, the tax
otherwise due if there had been no abatement shall become due and
payable by the property owner. The Tax Assessor shall notify the property
owner and the 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 sale or other 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
were set forth in the tax abatement agreement, the abatement shall
continue.
In the event of default by the applicant, including but not
limited to the failure to make timely tax or in lieu of tax payments
to the municipality, the municipality shall notify the applicant,
in writing, of said default. The applicant shall have 30 days to cure
any default. Following the thirty-day cure period, the municipality
shall have the right to proceed against the property pursuant to the
In Rem Tax Foreclosure Act, N.J.S.A. 54:4-1 et seq., and/or may cancel
the tax abatement agreement upon 30 days' notice to the applicant.
At the termination of a tax abatement agreement, a project shall
be subject to all applicable real property taxes as provided by state
law and local ordinance.
A.
No abatement shall be authorized except upon written application
therefor filed with the Tax Assessor. Every application shall on a
form on file with and available from the Borough Clerk's office and shall be filed with the
Tax Assessor within 30 days of the issuance of a certificate of occupancy
or temporary certificate of occupancy, whichever comes first.
B.
No application for tax abatement shall be accepted by the Borough
unless accompanied by full payment of the required application fee.
Such fees shall be based on total project cost as set forth in a schedule
on file with the office of the Borough Clerk. These fees shall be
received as compensation for the legal review and related work required
by the Borough's departments and agencies.
No abatement shall be granted, or tax agreement entered into,
with respect to any property for which property taxes or any other
municipal charges are delinquent or remain unpaid or for which penalties
for nonpayment are due for a period of at least one year, or for any
property not being used in conformance with local, state or federal
ordinance, regulation or statute.
A.
The application fee is to be paid at the time that an application
is submitted for tax abatement. The minimum application fee shall
be not less than $1,500 or more than $25,000.
B.
The application fee shall be calculated as a percentage of the estimated
cost of the improvements and shall be equal to 0.25% of the estimated
cost of the improvements as determined by the Tax Assessor.
