[HISTORY: Adopted by the Mayor and Council
of the Township of Clinton as indicated in article histories. Amendments
noted where applicable.]
[Adopted 7-23-2008 by Ord. No. 967-08]
A tax (hereinafter "hotel tax"), at the rate
and in the manner set forth in this article, is hereby imposed on
charges of rent for every occupancy of a room or rooms in a hotel
located in the Township and subject to taxation pursuant to Subsection
(d) of N.J.S.A. 54:32B-3, the New Jersey State Sales Tax, as said
statute may be amended from time to time.
A.
The following terms, when used in this article, shall
have the same meaning as those terms are defined in N.J.S.A. 54:32B-2,
as said statute may be amended from time to time: hotel, occupancy,
occupant, person, room and vendor.
B.
The phrases "person required to collect the rent"
and "person required to collect the hotel tax," as used in this article,
shall have the same meaning as the phrase "persons required to collect
tax" is defined in N.J.S.A. 54:32B-2, as said statute may be amended
from time to time.
Beginning on the effective date of this article
the hotel tax shall be 3% on charges of rent for every occupancy.
The hotel tax shall be in addition to any other
tax or fee imposed pursuant to federal, state or local law or regulation
upon the occupancy of a hotel room located in the Township.
A.
The hotel tax shall be paid by the occupant and a
vendor shall not assume or absorb any tax imposed herein.
B.
A vendor shall not in any manner advertise or hold
out to any person or the public in general, in any manner, directly
or indirectly, that the hotel tax will be assumed or absorbed by the
vendor, that the hotel tax will not be separately charged and stated
to the occupant, or that the hotel tax will be refunded to the occupant.
C.
Any vendor who violates this section shall, upon conviction thereof, be subject to the general penalty set forth in § 1-17 of this Code.
D.
Each assumption or absorption by a vendor of the hotel
tax shall be deemed a separate offense and each representation or
advertisement by a vendor for each day the representation or advertisement
continues shall be deemed a separate offense.
A.
The hotel tax shall be collected on the Township's
behalf by the person collecting the rent from the hotel occupant.
B.
Any person required to collect the rent from the hotel
occupant shall have the same right in respect to collecting the tax
from the occupant as if the tax were part of the rent and payable
at the same time; provided, however, that the Township Chief Financial
Officer shall be joined as a party in any action or proceeding brought
to collect the hotel tax.
C.
Each person required to collect the rent from the
hotel occupant shall be personally liable for the hotel tax imposed,
collected or required to be collected as set forth in this article.
A.
Every person required to collect the hotel tax shall,
on or before the 28th day of each month, forward to the Director of
the Division of Taxation in the New Jersey Department of the Treasury
("Director") the hotel tax collected in the preceding month and make
and file a return for the preceding month with the Director.
B.
The return shall be filed on such form and containing
such information as the Director shall prescribe as necessary. The
Director may permit or require returns to be made covering other periods
and upon any dates as the Director may specify. Additionally, the
Director may require payments of tax liability at any intervals and
based upon any classifications as the Director may designate.
The hotel tax shall be administered and distributed
solely in accordance with the requirements set forth at N.J.S.A. 40:48F-5,
as said statute may be amended from time to time. Upon the Director's
certification of the amount of revenues collected in the Township
on a quarterly basis and upon the warrant to the New Jersey State
Comptroller, the hotel tax is paid and distributed to the Township.
[Adopted 7-19-2017 by Ord. No. 1105-17]
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 Mayor and Council hereby find:
A.
Pursuant to N.J.S.A. 40A:21-l et seq., a municipality having within
its corporate limits areas in need of rehabilitation or redevelopment
may, by ordinance, provide for the exemption and/or abatement of real
property taxes, to encourage and provide incentives for the improvement,
conversion, or construction of certain structures.
B.
The Township of Clinton desires to establish real estate tax incentives
for the improvement, conversion or construction of dwellings, multiple
dwellings, commercial structures and mixed use structures within areas
that have been designated as being in need of rehabilitation or redevelopment.
C.
N.J.S.A 40A:21-l et seq. provides for the exemption of assessments
for five years following completion of a project as defined in the
statute and the exemption of property taxes for improvement, conversion,
or construction for a five year period following completion of the
project as defined in the statute.
The Township hereby authorizes the utilization of tax exemption
in accordance with Article VIII, Section 1, Paragraph 6, of the New
Jersey Constitution and establishes the eligibility of dwellings,
multiple dwellings, commercial structures and mixed-use structures
in areas designated as being in need of rehabilitation or redevelopment
for five-year tax exemptions to the extent set forth herein, such
exemption to commence upon completion of the project.
A.
Conversions to dwelling use. The conversion of other buildings and
structures, including unutilized public buildings, to dwelling use
shall be eligible for tax exemption for a period of five years in
accordance with the following:
(1)
Tax exemptions for such projects may only be approved by resolution
of the Mayor and Council.
(2)
In determining the value of real property, the Assessor or Mayor
and Council shall regard a percentage, not to exceed 30%, of the assessor's
full and true value of the dwelling converted as not increasing the
value of the property, notwithstanding that the value of the property
upon which the conversion occurs is increased thereby.
B.
Improvements to commercial structures. Improvements to commercial
structures are eligible for tax exemption for a period of five years
in accordance with the following:
(1)
Tax exemptions for such projects may only be approved by resolution
of the Mayor and Council.
(2)
In determining the value of real property, 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.
(3)
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.
C.
New construction of multiple dwellings. New construction of multiple
dwellings 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 and pursuant to a tax agreement
as set forth herein.
Any exemption for new construction of multiple dwellings pursuant to § 245-11C shall be subject to the owner and Township entering into a tax agreement as provided by N.J.S.A. 40A:21-10. Specifically:
A.
The applicant shall furnish to the Township all information required
by N.J.S.A. 40A:21-9·
B.
The tax agreement shall provide for the applicant to pay to the Township
in lieu of full property tax payments an amount annually to be computed
by one, but in no case a combination, of the three formulas set forth
in N.J.S.A. 40A:21-10, namely the "Cost," "Gross revenue," or "Tax
phase-in" basis;
C.
The aforesaid annual payments shall not be in lieu of sewer or water
charges, or other special assessments imposed in accordance with applicable
law;
D.
The tax agreement shall be in effect for no more than five full years
next following the date of the completion of the project;
E.
Within 30 days after the execution of any tax agreement, the Township
Clerk shall forward a copy of the agreement to the Director of the
Division of Local Government Services in the Department of Community
Affairs; and
F.
Every applicant shall file the application form prescribed by the
Director of the New Jersey Division of Taxation in the Department
of the Treasury, with the Tax Assessor, as a condition to approval
within 30 days, including Saturdays and Sundays, following the completion
of the project. Every application for exemption so filed shall be
approved and allowed by the Assessor to the degree that the application
is consistent with the provisions of this article, provided that the
project for which the application is made qualifies as such pursuant
to the provisions of this article and the specific tax agreement.
Mixed-use structures are eligible for tax exemption in accordance
with the requirements set forth in this article for the various components
of the mixed use.
All agreements made pursuant to this article shall provide that
the applicant is subject to all federal, state and local laws and
regulations.
If the property becomes ineligible for tax exemption prior to
the termination of the agreement, the Mayor and Council and Tax Collector
shall undertake the procedures established by N.J.S.A. 40A:21-12.
No exemptions shall be granted for any property for which taxes or
any other municipal charges are delinquent or remain unpaid of 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 federal,
state or local law or regulation.
In the event of default by the applicant, including but not
limited to the failure to make timely tax or in-lieu payments to the
Township, the Township Tax Assessor shall notify the applicant in
writing of the default. The applicant shall have 30 days to cure any
default. Following the thirty-day cure period, the Township shall
have the right to proceed against the property pursuant to the In
Rem Tax Foreclosure Act, N.J.S.A. 54:5-104.29 et seq., and/or may
cancel the tax agreement upon 30 days' notice to the applicant.
At the termination of a tax agreement, a project shall be subject
to all applicable real property taxes.
The exemption of real property taxes provided pursuant to this
article shall apply to property taxes levied for municipal purposes,
school purposes, county government purposes and for the purposes of
funding any other property tax exemptions.
The Township Clerk is hereby authorized and directed to forward
a certified copy of this article to the State of New Jersey, Department
of Community Affairs.
An annual report, as required by N.J.S.A. 40A:21-21, shall be
filed by the Township with the Director of the Division of Local Government
Services, Department of Community Affairs and Director of the Division
of Taxation, Department of the Treasury.
An appeal of any determination made by the Township under the
terms of this article shall be made to the Hunterdon County Board
of Taxation, unless a direct appeal to the New Jersey Tax Court is
authorized.
No application for tax exemption shall be filed for an exemption
to take initial effect for tax year 10 years from 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.
