Borough of Runnemede, NJ Tax Abatements

The following procedures shall govern agreements for tax abatement entered into by the Township Council and developers:

Improvements.

All improvements, as defined in N.J.S.A. 40A:21-3 shall be abated by agreement real property taxes, if approved by the Tax Assessor after proper application has been made. Application shall be upon the form approved by the Director of the Division of Local Government Services, Department of Community Affairs.

(b)

Applicants should file a preliminary application for abatement on improvements prior to the commencement of construction of the improvements, and that the applicant must file a proper, final application with the Tax Assessor within 30 days of the completion of the improvement, in order to be eligible for tax exemption thereon.

(c)

Every properly completed application for exemption of one or more improvements which is filed within 30 days of the completion of the improvement shall be approved and allowed by the Assessor not later than within 60 days of filing.

(2)

Projects.

(a)

All projects, as defined in N.J.S.A. 40A:21-3, should have a preliminary application for abatement filed prior to the commencement of construction of the project, and that the applicant must file a proper, final application with the Tax Assessor within 30 days of the completion of the project, in order to be eligible for tax abatement thereon.

(b)

Applicants for tax abatement on projects shall provide the Mayor and Borough Council with an application setting forth:

[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 governing body to demonstrate the structure and design of the project;

[4]

A description of the number, classes and types 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 tax abatement is granted;

[6]

Estimates of the cost of completing such project;

[7]

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 tax abatement; 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 abatement agreement;

[8]

A description of any lease agreements between the applicant and proposed users of the project, and a history and description of the user's business; and

[9]

Such other pertinent information as the governing body may require.

Upon approval of an ordinance authorizing an agreement for tax abatement for a particular project or improvements, the Mayor and Borough Council shall enter into a written agreement with the applicant for the abatement of local real property taxes. The agreement shall provide for the applicant to pay to the Borough of Runnemede in lieu of full property tax payments an amount annually to be computed by using the tax phase-in method pursuant to Subsection c of N.J.S.A. 40A:21-10. All tax abatement agreements hereunder shall be in effect for a period of five calendar years starting with the date of completion of the project.