[HISTORY: Adopted by the Township Council of the Township of Denville as indicated in article histories. Amendments noted where applicable.]
[Adopted by Ord. No. 13-03 (Ch. 27 of the 1978 Revised General Ordinances)]
It is the purpose of this article to implement the provisions of P.L. 2003, c. 114, which authorizes the governing body of a municipality to adopt an ordinance imposing a tax at a uniform percentage rate not to exceed 1% on charges of rent for every occupancy on or after July 1, 2003, but before July 1, 2004, and not to exceed 3% on charges of rent for every occupancy on or after July 1, 2004, of a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966, c. 30 (N.J.S.A. 54:32B-3) which shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of a hotel room.
There is hereby established a hotel and motel room occupancy tax in the Township of Denville which shall be fixed at a uniform percentage rate of 1% on charges of rent for every occupancy of a hotel or motel room in the Township of Denville on or after July 1, 2003, but before July 1, 2004, and 3% on charges of rent for every occupancy of a hotel or motel room in the Township of Denville on or after July 1, 2004, of a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966, c. 30 (N.J.S.A. 54:32B-3, Sales Tax).
The hotel and motel room occupancy tax shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of a hotel room.
[Amended by Ord. No. 7-07]
In accordance with the requirements of P.L. 2003, c. 114:
All taxes imposed by this article shall be paid by the purchaser.
A vendor shall not assume or absorb any tax imposed by this article.
A vendor shall not in any manner advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the tax will be assumed or absorbed by the vendor, that the tax will not be separately charged and stated to the customer, or that the tax will be refunded to the customer.
Each assumption or absorption by a vendor of the tax shall be deemed a separate offense and each representation or advertisement by a vendor for each day that the representation or advertisement continues shall be deemed a separate offense.
The tax imposed by this article shall be collected on behalf of the Township of Denville by the person collecting the rent from the hotel or motel customer. Each person required to collect the tax herein imposed shall be personally liable for the tax imposed, collected or required to be collected hereunder. Any such person shall have the same right in respect to collecting the tax from a customer as if the tax were a part of the rent and payable at the same time; provided that the Chief Financial Officer of the Township shall be joined as a party in any action or proceeding brought to collect the tax.
[Adopted 3-4-2014 by Ord. No. 5-14 (Ch. 2, Sec. 2-35, of the 1978 Revised General Ordinances)]
The purpose of this article is to establish a procedure for the Township's receipt, review and consideration of applications for tax abatement/exemptions under the authority granted under Article VIII, Section I, Paragraph 6 of the New Jersey Constitution and pursuant to the Five-Year Exemption and Abatement Law (N.J.S.A. 40A:21-1 et seq.) to offer financial assistance for development projects located in an area in need of rehabilitation, as such areas are defined under the Local Redevelopment and Housing Law (N.J.S.A. 40A:12A-1 et seq.).
The Township hereby authorizes and establishes a policy whereby it shall accept, review and consider an application, submitted in accordance herewith, for tax abatement/exemptions pursuant to applicable law for areas designated as areas in need of rehabilitation by the Municipal Council. However, this article does not commit or require the Township to approve any application submitted in accordance herewith. In considering each application, the Township shall consider, in part, the benefits of the development project for the Township and the impact of any tax abatement/exemption requested on the budget of the Township.
Unless otherwise specifically provided in this article the definition of all words and terms used in this article shall be those provided in N.J.S.A. 40A:21-1 entitled "The Five-Year Exemption and Abatement Law" (hereinafter referred to as "the Exemption Law").
All multiple dwellings constructed in an area in need of rehabilitation which qualify pursuant to the Exemption Law, shall be eligible for abatement/exemption from taxation for a period of five full years next following the date of completion of the project as provided in this article.
Prior to the commencement of construction, applicants for tax abatement/exemption for the construction of multiple dwellings shall submit an application and the fee and escrow payments established by this article setting forth:
A general description of the project for which abatement/exemption is sought;
A legal description of all real estate necessary for the project;
Plans, drawings and other documents as may be required by the Township to demonstrate the structure and design of the proposed project;
A statement of the reasons for seeking tax abatement/exemption on the project and a description of the benefits to be realized by the applicant if a tax abatement/exemption is granted. Included in this statement shall be the details of any state, county or local financial contributions including loans or grants of any kind;
Estimates of the costs of completing the project;
A statement showing:
The real property taxes currently being assessed at the project site;
Estimated annual service charges that would be made annually by the applicant on the project during the term of the proposed tax abatement/exemption; and
Estimated tax payments that would be made by the applicant on the project during the first full year following termination of the tax abatement/exemption agreement;
A description of the number and type of dwelling units to be provided, a description of the common elements or general common elements, and a statement of the proposed initial rental or sale prices of the dwelling units according to type and of any rental lease or resale restrictions to apply to the dwellings' units respecting low or moderate-income housing;
A form of financial agreement containing, at a minimum, the terms and conditions set forth below;
A pro-forma and/or other fiscal analysis demonstrating the need for the tax abatement and/or exemption;
A description of any contribution to the project requested of or proposed by the Township including, but not limited to, contributions from the Township Affordable Housing Trust Fund or in kind contributions in the nature of construction of public improvements such as roads or infrastructure; and
Such other pertinent information as may be required by the Township.
Applicants shall submit applications for an abatement/exemption to the Township Administrator. Following receipt of a completed application as set forth above, the Township shall review same to determine whether an abatement/exemption for new construction shall be granted following an individual review and evaluation of each application submitted to the Township. The Township Administrator shall notify the Township Council upon receiving an application as soon as practicable after filing of an application with the Township. All applications shall be forwarded by the Township Administrator to the appropriate staff for review, including, but not limited to: 1) the Chief Financial Officer; 2) the Township Attorney; 3) the Tax Assessor; and 4) the Township Planner. Within 60 days of filing of the application, the Township Administrator shall forward a copy of the completed application and review memoranda to the Township Council.
The authorization to enter into a financial agreement must be granted by the Municipal Council by ordinance for the particular project. Any financial agreement shall contain those terms required by the Exemption Law, including, but not limited to:
The applicant shall pay to the municipality, in lieu of full property tax payments, an amount annually to be computed by one, but in no case a combination of the "Cost Basis Formula," "Gross Revenue Basis Formula," or "Tax Phase-In Basis Formula," all as defined in the Exemption Law and incorporated by reference herein as if set forth fully.
All tax abatement/exemptions applied for and granted pursuant to the Exemption Law and this article shall be in effect for a period of no more than five full years next following the date of completion of the project.
No abatement/exemption shall be granted, or financial agreement entered into pursuant to the Exemption Law or this article, with respect to any property for which property taxes are delinquent or remain unpaid, or for which penalties for nonpayment of taxes are currently then due and owing.
All projects subject to tax agreement as provided herein shall be subject to all applicable federal, state and local laws and regulations on pollution control, worker safety, discrimination in employment, housing provision, zoning, planning and building code requirements.
That percentage which the payment in lieu of taxes for a property bears to the property tax which would have been paid had an abatement/exemption not been granted for the property under the agreement shall be applied to the valuation of the property to determine the reduced valuation of the property to be included in the valuation of the municipality for determining equalization for county tax apportionment and school aid during the term of the tax agreements covering the properties, and at the termination of an agreement for a property the reduced valuation procedure required under this subsection shall no longer apply.
As a further condition to granting an abatement/exemption, a property owner shall be required to waive the filing of any tax appeal or withdraw any pending tax appeal for the subject property for the life of the abatement/exemption.
The financial agreement shall be recorded by the applicant and made a permanent part of the official tax records of the Township, which records shall contain a notice of termination date thereof.
Within 30 days following execution of a financial agreement, pursuant to the Exemption Law and this article, the Township shall forward a copy of the agreement to the Director of Local Government Services in the Department of Community Affairs.
No abatement/exemption shall be granted or allowed except upon written application on forms prescribed by the Department of the Treasury [N.J. Form E/A-1 (Rev. 11/96) or as may be amended] and filed with the Assessor within 30 calendar days following the completion of the construction of the improvements. It shall be conclusively presumed that construction of the improvements shall be deemed complete 18 months from the date of the issuance of the building permit or upon the issuance of 50% of the certificates of occupancy for the units in the project, whichever occurs first. The Construction Official shall determine the completion date in accordance with the above which decision shall be final, and not subject to appeal. The application required by this section is in addition to and not in place of the application required pursuant to § 512-10A of this article. The Tax Assessor shall approve the application for abatement/exemption if the application is consistent with the terms of this article and all terms of the Tax Agreement entered into between the applicant and the Township which was approved by ordinance of the Municipal Council.
If any provisions for tax abatement/exemptions are not set forth herein, the applicant and Township shall rely upon the provisions set forth in the Exemption Law.
In the event that a property owner subject to a tax agreement shall become delinquent on local property taxes, municipal charges, ceases to operate, disposes of the property or fails to meet the conditions for qualifying for the abatement/exemption during the abatement/exemption period, the local property taxes due for all the prior years subject to abatement/exemption and for the current year shall be payable as if no abatement/exemption had been granted. The Tax Collector shall notify the property owner within 15 days of the date of disqualification of the amount of taxes dues. In the event that 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 condition, no tax shall be due, the abatement/exemption shall continue and the agreement shall remain in effect.
The fee for each application submitted pursuant to § 512-10A of this article shall be $1,250.
Upon termination of a financial agreement referenced hereunder, 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 financial agreement, from qualifying for and receiving the full benefits of any other tax preferences provided by law.
No application for tax abatement/exemption shall be filed for an abatement/exemption to take initial effect in the eleventh tax year after adoption of this article or any tax year occurring thereafter, unless this article is readopted by the Mayor and Council in accordance with the Exemption Law.