[Adopted 6-18-2002 by Ord. No. 497-2002]
Exemptions from taxation for improvements to commercial or industrial
structures may be granted upon review, evaluation and approval of
each application on an individual basis by the governing body. In
determining the value of real property, the Township of Fairfield
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.
Abatements from taxation for construction of commercial or industrial
structures may be granted upon review, evaluation and approval of
each application on an individual basis by the governing body and
upon execution of an agreement which shall be entered into between
the Township of Fairfield and the developer in accordance with the
procedures set forth in this article.
Applicants for tax abatement or tax exemption for new construction
of commercial or industrial structures shall provide the governing
body with an application setting forth:
A. A general description of a project for which abatement or exemption
is sought.
B. A legal description of all real estate necessary for the project.
C. Plans, drawings and other documents as may be required by the governing
body to demonstrate the structure and design of the project.
D. 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.
E. A statement of the reasons for seeking tax abatement or tax exemption
on the project and a description of the benefits to be realized by
the applicant if a tax agreement is granted.
F. Estimates of the cost of completing such project.
G. A statement showing the real property taxes currently being assessed
at the project site, estimated tax payments that would be made annually
by the applicant on the project during the period of the agreement,
and estimated tax payment that would be made by the applicant on the
project during the first full year following the termination of the
tax agreement.
H. A description of any lease agreements between the applicant and proposed
users of the project and a history and description of the user's
businesses.
I. Such other pertinent information as the governing body may require.
Upon adoption of an ordinance authorizing an agreement or agreements
for tax abatements for a particular project or projects, the Township
of Fairfield may enter into written agreements with the applicants
for the abatement of local real property taxes. An agreement shall
provide for the applicant to pay the Municipality in lieu of full
property tax payments an amount equal to a percentage of taxes otherwise
due, according to the following schedule:
A. In the first full tax year after completion, no payment in lieu of
taxes otherwise due.
B. In the second tax year, an amount not less than 20% of taxes otherwise
due.
C. In the third tax year, an amount not less than 40% of taxes otherwise
due.
D. In the fourth tax year, an amount not less than 60% of taxes otherwise
due.
E. In the fifth tax year, an amount not less than 80% of taxes otherwise
due.
The Assessor shall determine, on October 1 of the year following
the date of the completion of an improvement or construction, the
true taxable value thereof. Except for projects subject to tax agreement
as provided herein, the amount of tax to be paid for the first full
tax year following completion shall be based on the assessed valuation
of the property for the previous year plus any portion of the assessed
valuation of the improvement not allowed an exemption pursuant to
this article. The property shall continue to be treated in the appropriate
manner for each of the five full tax years subsequent to the original
determination by the Assessor.
No exemption or abatement shall be granted 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.
No exemption or abatement shall be granted pursuant to this
article except upon written application therefor filed with and approved
by the Assessor. Every application shall be on a form prescribed by
the Director of the Division of Taxation in the Department of the
Treasury and provided for the use of claimants by the Township of
Fairfield and shall be filed with the Assessor within 30 days, including
Saturday and Sundays, following the completion of the improvement
or construction. Every application for exemption or abatement which
is filed within the time specified shall be approved and allowed by
the Assessor to the degree that the applicant is consistent with the
provisions of this article, provided that the improvement or construction
for which the applicant is made qualifies as an improvement or construction
pursuant to the provisions of N.J.S.A. 40A:21-1 et seq. The granting
of an exemption or tax agreement shall be recorded and made a permanent
part of the official tax records of the taxing district, which record
shall contain a notice of the termination date thereof.
Pursuant to N.J.S.A. 40A:21-20, notice of the adoption of this
article shall be included in the mailing of annual property tax bills
to each owner of a dwelling located in the Township of Fairfield during
the first year following adoption of this article.