The following procedures shall govern agreements for tax abatements
and exemptions entered into by the Borough Council of Brooklawn Borough
and property owners and developers:
A.
Application process.
(1)
All improvements, as defined in N.J.S.A. 40A:21-3n, shall be exempt
from local real property taxes, if approved by the Tax Assessor as
to the completeness, and then approved by Borough Council. Application
shall be upon the form approved by the Borough Council and the Borough
Tax Assessor.
(2)
Applicants shall be encouraged to apply for tax exemption on improvements
prior to the commencement of construction of the improvement, provided
that the applicant must file a proper application with the Tax Assessor
within 30 days of the completion of the improvement in order to be
eligible for tax exemption thereon.
(3)
Every properly completed application for exemption on a single-family
residential property, having one or more improvements, which is filed
within 30 days of the completion of the improvement shall be approved
and allowed or disapproved by the Assessor within 60 days of its filing.
B.
Applications. Applications for tax abatement and/or exemption on
projects shall be provided to the Borough Council through the Borough
Assessor, 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 Borough
Council 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 and/or exemption
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:
(a)
The real property taxes currently being assessed at the project
site.
(b)
The estimated tax payments that would be made annually by the
applicant on the project during the period of the agreement.
(c)
The estimated tax payments that would be made by the applicant
on the project during the first full year following the termination
of the tax agreement.
(8)
If the project is a commercial or industrial building, 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.
(9)
If the project is a multiple dwelling, a description of the number
and types of dwelling units to be provided, a description of the common
elements or general common elements, and a statement of the proposed
initial rentals or sales prices of the dwelling units according to
type and of any rental or resale restrictions to apply to the dwelling
units respecting low- or moderate-income housing.
(10)
Such other pertinent information as the Borough Council may
require.
C.
Exemptions and abatements on residential dwellings.
(1)
Exemptions. With regard to the exemption from taxation of improvements to dwellings, in determining the value of real property, the Borough shall regard the first $25,000 in Assessor's full and true value of improvements for each dwelling unit primarily and directly affected by the improvement in any dwelling more than 20 years old, as not increasing the value of the property for a period of five years, notwithstanding that the value of the property to which the improvements are 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 an abatement is granted pursuant to Subsection C(2) of this section, or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
(2)
Abatements for improvements. The Borough Council may abate some portion
of the assessed value of property receiving the abatement as it existed
immediately prior to the improvement. An abatement for a dwelling
may be granted with respect to that property for a total of up to
five years, but the annual amount of the abatement granted to any
single property shall not exceed 30% of the annual amount of the abatement
granted under this article. The abatement period and the annual percentage
of the abatement to be granted shall be set forth in the specific
ordinance which may include a schedule providing for a different percentage
of abatement up to 30% for each year of the abatement period.
(3)
Abatement for new construction and/or conversions. The Borough Council
may abate some portion of the assessed valuation of construction of
new dwellings or of conversions of other buildings and structures,
including unutilized public buildings, to dwelling use, or both. In
determining the value of real property, the municipality shall regard
a percentage, not to exceed 30% of the Assessor's full and true value
of the dwelling constructed, or conversion alterations made, as not
increasing the value of the property for a total up to five years,
notwithstanding that the value of the property upon which the construction
or conversion occurs is increased thereby. The abatement period and
the annual percentage of the abatement to be granted shall be set
forth in the specific ordinance, which may include a schedule providing
for a different percentage of abatement, up to 30%, for each year
of the abatement period.
(4)
Joint abatement and exemption. A project-specific ordinance providing
for exemption may also provide for the abatement of some portion of
the assessed value of property receiving the abatement of 30% as it
existed immediately prior to the improvement or conversion alteration.
The annual amount of the abatement shall not exceed 30% of the total
cost of the improvement or conversion alteration, and the total amount
of abatement and exemption granted to any single property shall not
exceed the total cost of the improvement or conversion alteration.
The abatement period and the annual percentage of the abatement to
be granted shall be set forth in the specific ordinance which may
include a schedule providing for a different percentage or abatement,
up to 30%, for each year of the abatement period.
D.
Exemptions and abatements on commercial and industrial structures.
(1)
With regard to the exemption from taxation of improvements to commercial
or industrial structures in determining the value of real property,
the municipality 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, notwithstanding that the value of the property
to which the improvements are 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.
(2)
With regard to exemptions and/or abatements for any improvements
other than single-family residential property, the Borough shall authorize
exemption for improvements on an individual basis after review, evaluation
and approval of each application by the Borough Council.
An additional improvement, conversion or construction completed
on a property granted a previous exemption or abatement pursuant to
this article during the period in which such previous exemption or
abatement is in effect shall be qualified for an exemption, or exemption
and abatement, just as if such property had not received a previous
exemption or abatement. In such a case, the additional improvement,
conversion or construction shall be considered as separate for the
purposes of calculating exemptions and abatements pursuant to this
article, except that the assessed value of any previous improvement,
conversion or construction shall be added to the assessed valuation
as it was prior to that improvement, conversion, alteration or construction
for the purpose of determining the assessed valuation of the property
from which any additional abatement is to be subtracted.
Upon approval of a specific ordinance authorizing an agreement
for tax exemption for a particular project, the Borough Council shall
enter into a written agreement with the applicant for the exemption
of full real property taxes. The agreement shall provide for the applicant
to pay to the Borough of Brooklawn, in lieu of full property tax payments,
an amount annually in accordance with N.J.S.A. 40A:20-1 et seq.
No exemption or abatement shall be granted, or tax agreement
entered into, pursuant to 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 due.
