[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.
AREA IN NEED OF REHABILITATION
ASSESSOR
MIXED-USE STRUCTURE
MUNICIPAL CHARGES
PROJECT
THE ACT
THE TOWNSHIP OF GALLOWAY
Additional terms. As used in this article, the following definitions
shall apply:
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]
The officer of the Township of Galloway charged with the
duty of assessing real property for the purpose of general taxation.
A structure with two or more different uses, such as residential,
commercial or industrial.
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.
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 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.
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:
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.
