[Adopted 12-13-2016 by Ord. No. 1954-2016]
The intention of this article is to effectuate and accomplish the purposes authorized by N.J.S.A. 40A:21-1 et seq., which permits municipalities to grant for periods of five years exemptions and/or abatements, or both, from taxation in areas of the municipality in need of rehabilitation. The intended purpose of this article is to promote the improvement, rehabilitation and/or construction of residential dwellings, commercial structures, industrial structures and mixed-use structures within designated rehabilitation areas of the Township of Galloway.
The Township of Galloway hereby authorizes the utilization of tax exemptions in accordance with Article VIII, Section I, Paragraph 6, of the New Jersey Constitution and establishes the eligibility of single-family residential dwellings, commercial and industrial structures and mixed-use structures for five years to the maximum degree permitted by N.J.S.A. 40A:21-1 et seq. in any area designated as any eligible area as defined in § 299-11.
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, those words shall have the meanings as so defined unless a different meaning is clearly expressed.
B. 
Additional terms. As used in this article, the following definitions shall apply:
AREA IN NEED OF REHABILITATION
The area(s) within the Township of Galloway which has (have) been determined to be an area in need of rehabilitation or redevelopment pursuant to the Local Redevelopment and Housing Law (N.J.S.A. 40A:12A-1 et seq.), which have been determined to be a "blighted area" pursuant to the Blighted Areas Act (N.J.S.A. 40:55-21.1 et seq.),[1] or which has been determined to be in need of rehabilitation pursuant to N.J.S.A. 54:4-3.72 et seq. or N.J.S.A. 54:4-3.121 et seq.[2]
ASSESSOR
The officer of the Township of Galloway charged with the duty of assessing real property for the purpose of general taxation.
MIXED-USE STRUCTURE
A structure with two or more different uses, such as residential, commercial or industrial.
MUNICIPAL CHARGES
Property taxes, assessments, water or sewer charges and any other charge for which a lien may be created, together with interest and penalties thereon, including all advertising fees and costs of sale.
PROJECT
Any improvement, construction or conversion undertaken by a single entity pursuant to a redevelopment plan, which may include the construction, reconstruction, conversion, structural alteration, relocation or enlargement of any building or other structure, or of any mining excavation or landfill, and any use or change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to the Municipal Land Use Law, N.J.S.A. 40:55D-1 et seq., except that in the case of dwellings, it shall mean the improvement, construction or conversion of any dwelling on a single parcel of land.
THE ACT
The Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1 et seq., enacted into law on or about January 18, 1992, as amended and supplemented.
THE TOWNSHIP OF GALLOWAY
The Township of Galloway.
[1]
Editor's Note: N.J.S.A. 40:55-21.1 et seq. was repealed by L. 1992, c. 79, § 59.
[2]
Editor's Note: N.J.S.A. 54:4-3.72 et seq. and 54:4-3.121 et seq. were repealed by L. 1991, c. 441, § 22, effective 1-18-1992. For N.J.S.A. 54:4-3.72, see now N.J.S.A. 40A:21-1 et seq.
C. 
Where consistent with the context used in this article, words importing the singular shall include the plural, words importing the plural shall include the singular and words importing one gender shall include all other genders.
A. 
The Mayor and Council may enter into agreements with developers and/or owners of property that are in areas in need of redevelopment or rehabilitation within the Township of Galloway, as determined by the Mayor and Council in accordance with N.J.S.A. 40A:12A-1 et seq. providing tax exemptions for the construction and rehabilitation of dwellings, industrial structures, commercial structures and mixed-use structures within the Township of Galloway pursuant to the Act and the requirements of this article.
B. 
The Assessor may approve tax exemptions for the benefit of developers and/or owners of property that are in areas in need of redevelopment or rehabilitation within the Township of Galloway, as determined by the Mayor and Council in accordance with N.J.S.A. 40A:12A-1 et seq. for the construction and rehabilitation of single-family dwellings. All tax exemptions for industrial structures, commercial structures and mixed-use structures within the Township of Galloway shall be approved by the Mayor and Council pursuant to the Act and the requirements of this article.
Tax abatement. Subject to the approval of the Assessor, improvements made to dwellings shall be eligible for a tax abatement in accordance with the following:
A. 
Only improvements made to dwellings more than 20 years old are eligible for tax exemption for a period of five years. For purposes of eligibility under this section a dwelling will be considered less than 20 years old if in the last 20 years the dwelling has been demolished in its entirety or where less than 60% of the original square footage of the dwelling remains.
B. 
Upon approval, the Assessor, in determining value, shall regard the first $25,000 of the full and true value of improvements for each dwelling unit primarily and directly affected by the improvements as not increasing the value of the property, notwithstanding that the value of the property to which the improvements are made is increased thereby.
C. 
The five-year exemption period shall not commence until the first full year following the tax year in which the improvements are completed.
D. 
During the exemption 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 dwelling through action of the elements sufficient to warrant a reduction.
Improvements to commercial structures are eligible for tax exemption for a period of five years in accordance with the following:
A. 
Tax exemptions for projects whose estimated property tax assessment on the property would be less than $200,000 per annum are subject to the approval of the Assessor.
B. 
Tax exemptions for projects whose estimated tax assessment on the property would be more than $200,000 per annum may only be approved by resolution of the Mayor and Council.
C. 
Upon approval by the Assessor or Mayor and Council, in determining value, the Assessor or Mayor and Council 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.
D. 
This exemption is to be granted notwithstanding that the value of the property to which the improvement is made is increased thereby. During the exemption 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.
E. 
The five-year exemption period shall not commence until the first full year following the tax year in which the improvement is completed.
A. 
New construction of commercial structures is eligible for tax exemption for a period of five years. This exemption may only be approved by ordinance of the Mayor and Council on a project-by-project basis.
(1) 
Consideration of local job creation benefit. In considering the availability of any tax exemption to any project under this article and under either the Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1, et seq., or the Long Term Tax Exemption Act, N.J.S.A. 40A:20-1, et seq., the Mayor and Council shall consider and evaluate the likelihood of the creation of jobs for residents of Galloway Township and Atlantic County as a basis for deciding the financial merits of awarding a tax exemption to a redevelopment project. The Mayor and Council may require provisions in a redevelopment agreement requiring local hiring as a condition of the provision and continuation of a tax exemption.
[Added 11-14-2017 by Ord. No. 1978-2017]
B. 
Applicants for tax exemption shall provide the Mayor and Council with an application setting forth all the following information:
(1) 
A general description of a project for which exemption 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 Mayor and 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.
(5) 
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.
(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 completion schedule.
(8) 
A statement showing the real property taxes currently being assessed at the project site, the estimated tax payments that would be made annually by the applicant on the project during the period of the agreement, and the 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) 
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's certification that the improvement as proposed meets the requirements of the redevelopment plan or the Township of Galloway's Zoning Ordinance.
(12) 
The signature of the owner and the owner's certification as to the truth and accuracy of the contents contained in the application.
(13) 
Such other pertinent information as the Mayor and Council may require on a case-by-case basis.
C. 
The owner shall enter a written agreement with the Township of Galloway to pay a tax on the newly constructed commercial structures to be computed in accordance with one, but in no case a combination, of the three formulas set forth in N.J.S.A. 40A:21-10 et seq.: the "cost basis," the gross revenue basis" or the "tax phase-in basis." 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 at the rate of interest charged for delinquent real estate taxes.
D. 
The five-year exemption period shall not commence until the first full year following the tax year in which the construction of the commercial structures is completed.
E. 
The Mayor and Council shall be responsible for the administration and enforcement of the tax agreement in accordance with the following:
(1) 
In the event that 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.
(2) 
If 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, no additional tax shall be due, the exemption shall continue and the agreement shall remain in effect.
(3) 
The Mayor and Council shall notify the property owner and the Assessor of the amount of taxes due within 15 days of the date of disqualification.
F. 
The Township of Galloway Clerk shall forward a copy of all tax exemption 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 of said agreement.
Improvements to industrial structures are eligible for tax exemption for a period of five years in accordance with the following:
A. 
Tax exemptions for projects whose estimated property tax assessment on the property would be less than $200,000 per annum are subject to the approval of the Assessor.
B. 
Tax exemptions for projects whose estimated tax assessment on the property would be more than $200,000 per annum may only be approved by resolution of the Mayor and Council.
C. 
Upon approval by the Assessor or Mayor and Council, in determining value the Assessor or Mayor and Council 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.
D. 
This exemption is to be granted notwithstanding that the value of the property to which the improvement is made is increased thereby. During the exemption 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.
E. 
The five-year exemption period shall not commence until the first full year following the tax year in which the improvement is completed.
A. 
New construction of industrial structures is eligible for tax exemption for a period of five years. This exemption may only be approved by ordinance of the Mayor and Council on a project-by-project basis.
B. 
Applicants for tax exemption shall provide the Mayor and Council with an application setting forth all the following information:
(1) 
A general description of a project for which exemption 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 Mayor and 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.
(5) 
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.
(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 completion schedule.
(8) 
A statement showing the real property taxes currently being assessed at the project site, the estimated tax payments that would be made annually by the applicant on the project during the period of the agreement, and the 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) 
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's certification that the improvement as proposed meets the requirements of the redevelopment plan or the Township of Galloway's Zoning Ordinance.
(12) 
The signature of the owner and the owner's certification as to the truth and accuracy of the contents contained in the application.
(13) 
Such other pertinent information as the Mayor and Council may require on a case-by-case basis.
C. 
The owner shall enter a written agreement with the Township of Galloway to pay a tax on the newly constructed industrial structures to be computed in accordance with one, but in no case a combination, of following three formulas set forth in N.J.S.A. 40A:21-10 et seq.: the "cost basis," the "gross revenue basis" or the "tax phase-in basis." 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 at the rate of interest charged for delinquent real estate taxes.
D. 
The five-year exemption period shall not commence until the first full year following the tax year in which the construction of the industrial structures is completed.
E. 
The Mayor and Council shall be responsible for the administration and enforcement of the tax agreement in accordance with the following:
(1) 
In the event that 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.
(2) 
If 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, no additional tax shall be due, the exemption shall continue and the agreement shall remain in effect.
(3) 
The Mayor and Council shall notify the property owner and the Assessor of the amount of taxes due within 15 days of the date of disqualification.
F. 
The Township of Galloway Clerk shall forward a copy of all tax exemption 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 of said agreement.
Construction of mixed-use structures is eligible for tax exemption in accordance with the requirements set forth in this article for the various components of the mixed use.
The Assessor shall determine, on October 1 of the year following the date of the completion of any improvement, conversion or construction, the true taxable value thereof. The amount of tax to be paid for the first full tax year following completion of any improvement, conversion or construction for any portion thereof not subject to an assessment or exemption shall be based on the valuation of the property by the Assessor pursuant to this section and shall continue in the appropriate manner for each of the five full tax years of the exemption period.
All tax exemption agreements shall provide that the property owner is subject to all applicable federal, state and local laws and regulations, including but not limited to laws and regulations governing pollution control, worker safety, discrimination in employment, housing provisions, zoning, planning and building code requirements.
A. 
Applicants for tax exemption shall submit an application to the Assessor on a form prescribed by the Director of the Division of Taxation in the Department of Treasury within calendar 30 days following the completion of the improvement, new construction or conversion.
B. 
The Assessor shall forward a copy of the completed application to the Mayor and Council within 30 days of the receipt of same for all tax exemption requests requiring Mayor and Council approval. Following receipt of a completed application as set forth above, the Mayor and Council or the Assessor, as applicable, shall review same to determine whether an exemption shall be granted.
C. 
All tax exemptions and all tax agreements shall be recorded and made a permanent part of the official tax records of the Township of Galloway, which records shall contain a notice of termination date thereof.
D. 
Any tax exemption approved pursuant to this article shall apply to the property taxes levied for Township of Galloway purposes, school purposes, county government purposes and for the purposes of funding any other property tax exemptions.
E. 
Every application for exemption shall be subject to the provisions of this article as well as the provisions of N.J.S.A. 40A:21-1 et seq. and all rules and regulations promulgated thereunder.
No exemptions shall be granted for any property for which property taxes or any other municipal charges, including interest, are delinquent or remain unpaid or for which penalties for nonpayment are due or for any property for which a casino license has been issued.
Any additional improvement, conversion or new construction completed to a property already granted an exemption during the period in which the exemption is in effect shall be eligible for an additional exemption, just as if such property had not received a previous exemption. The additional improvement, conversion or new construction shall be considered as separate for purposes of calculating the exemption, except that the assessed value of any previous improvement, conversion or new construction shall be added to the assessed valuation as it was prior to that improvement, conversion or new construction for the purpose of determining the assessed value of the property from which any additional exemption is to be subtracted.
Upon termination of any tax exemption or any tax agreement approved pursuant to this article, a project shall be subject to all applicable real property taxes as provided by state law and regulation, as well as local ordinances. However, nothing herein shall prohibit a project, upon termination of a tax exemption or any tax agreement, from qualifying for and receiving the full benefits of any other tax preferences provided by law.
During the first year following adoption of this article, the Collector shall include an appropriate notice in the mailing of the annual property tax bills to property owners advising them of the availability of tax exemptions under this article.
A. 
The Assessor, on behalf of the Mayor and Council, shall report on or before October 1 of each year, to the Director of the Division of Local Government Services in the Department of Community Affairs, the Director of the Division of Taxation in the Department of the Treasury, and to the Mayor and Council, the total amount of real property taxes exempted within the Township in the current tax year for each of the following:
(1) 
Improvements of dwellings.
(2) 
Construction of dwellings.
(3) 
Improvements of commercial or industrial structures.
(4) 
Construction of commercial or industrial structures under tax agreements.
B. 
In the case of Subsection A(3) and (4) above, the report shall state instead the total amount of payments made in lieu of taxes according to each formula utilized by the Township of Galloway, and the difference between that total amount and the total amount of real property taxes which would have been paid on the project had the tax agreement not been in effect, for the current tax year.
Appeal of any determination made by the Township of Galloway under the terms of this article shall be made to the Atlantic County Board of Taxation.
No application for tax exemption shall be filed for an exemption to take initial effect in the 11th tax year after initial adoption, or any tax year thereafter, unless this article is readopted by the Mayor and Council in accordance with N.J.S.A. 40A:21-4.[1]
[1]
Editor's Note: Former Art. IV, Cannabis Transfer Tax, adopted 8-10-2021 by Ord. No. 2056-2021, which immediately followed, was repealed 2-14-2023 by Ord. No. 2100-2023.