[HISTORY: Adopted by the Township Committee of the Township
of Fairfield as indicated in article histories. Amendments noted where
applicable.]
[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.
A.
All tax exemption and tax abatement agreements entered into pursuant
to this article shall be in effect no more than the five full tax
years next following the date of completion of the project.
B.
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.
C.
That percentage which the payment in lieu of taxes for a property
bears to the property tax which would have been paid had an exemption
or an abatement 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 under this section shall no longer
apply.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. II)]
D.
Within 30 days after the execution of a tax agreement, the Township
of Fairfield shall forward a copy of the agreement to the Director
of the Division of Local Government Services in the Department of
Community Affairs.
A.
If during any tax year prior to the termination of the tax agreement
the property owner ceases to operate or disposes of the property or
fails to meet the condition for qualifying, then the tax which would
have otherwise been payable for each tax year shall become due and
payable from the property owner as if no exemption or abatement had
been granted. The Tax Assessor shall notify the property owner and
the Tax Collector forthwith, and the Tax Collector shall, within 15
days thereof, notify the owner of the property of the amount of taxes
due. However, with respect to the disposal of the property, where
it is determined that the new owner of the property will continue
to use the property pursuant to the conditions which qualified the
property, no tax shall be due, the exemption and the abatement shall
continue and the agreement shall remain in effect.
B.
At the termination of a tax agreement, a project shall be subject
to all applicable real property taxes as provided by state law and
regulation and local ordinance, but nothing herein shall prohibit
a project, at the termination of an agreement, from qualifying for
and receiving the full benefits of any other tax preferences provided
by law.
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.
[Adopted 12-20-2023 by Ord. No. 13-2023[1]]
[1]
Editor's Note: Section 2 of this ordinance further provided
as follows: "The Township of Fairfield may issue not more than two
Class 5 Cannabis Retailer licenses. Licensure in all classes may be,
but are not required to be, held by the same entity or individual,
but an entity may not hold more than one cannabis retailer license.
Any license conditionally issued by the Township is contingent upon
the locally licensed entity's or individual's subsequent receipt of
a state license or permit of the same class or type of regulated cannabis
activity. Under no circumstances shall a local permit or conditional
license for a cannabis establishment issued through the Township be
effective until the state has issued the requisite license to operate
such a facility."
The purpose of this article is to impose a tax on the sale of
cannabis or cannabis products by licensed commercial cannabis businesses
operating in the Township of Fairfield pursuant to the New Jersey
Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization
Act,[1] to specify the type of tax and rate of tax to be levied
and the method of collection, and to comply with all requirements
for the imposition of a transfer or user tax pursuant to state law.
This article is enacted solely to raise revenue and not for regulation.
This article does not authorize the conduct of any business or activity
in the Township of Fairfield but provides for the taxation of such
businesses or activities as they occur.
[1]
Editor's Note: See N.J.S.A. 24:6I-31 et seq.
As used in this article, the following terms shall have the
meanings indicated:
This term shall have the same meaning as provided under N.J.S.A.
24:6I-33.
A facility involved in the growing and cultivating of cannabis,
and which has been duly issued a Class 1 Cannabis Cultivator license
by the New Jersey Cannabis Regulatory Commission, or its successor
agency.
A facility involved in the manufacturing, preparation, and
packaging of cannabis items, and which has been duly issued a Class
2 Cannabis Manufacturer license by the New Jersey Cannabis Regulatory
Commission, or its successor agency.
Any person or entity that purchases or otherwise obtains
cannabis or cannabis items from cannabis cultivators, manufacturers,
or wholesalers, and sells these items to consumers from a retail store,
and/or may use a cannabis delivery service or a certified cannabis
handler for the off-premises delivery of cannabis items and related
supplies to consumers and which has been duly issued a Class 5 Cannabis
Retailer license by the New Jersey Cannabis Regulatory Commission,
or its successor agency.
A facility involved in obtaining and selling cannabis items
for later resale by other licensees, and which has been duly issued
a Class 3 Cannabis Wholesaler license by the New Jersey Cannabis Regulatory
Commission, or its successor agency.
The Township of Fairfield hereby imposes and shall collect certain
local option taxes on cannabis business activity as follows:
A.
A municipal transfer tax is hereby imposed on the receipts of each
sale by a licensed cannabis business operating in the Township of
Fairfield at the rate of 2% of the receipts from each sale by a cannabis
cultivator, 2% of the receipts from each sale by a cannabis manufacturer,
1% of the receipts from each sale by a cannabis wholesaler, and 2%
of the receipts from each sale by a cannabis retailer.
B.
A municipal user tax is hereby imposed, at the equivalent transfer
tax rates, on any concurrent license holder operating more than one
cannabis establishment. The user tax shall be imposed on the value
of each transfer or use of cannabis or cannabis items not otherwise
subject to the transfer tax imposed pursuant to this section, from
the license holder's establishment that is located in the municipality
to any of the other license holder's establishments, whether
located in the municipality or another municipality.
All revenues collected pursuant to this article shall be remitted
to the Chief Financial Officer of the Township of Fairfield in the
manner provided by this article. The taxes imposed by this article
shall be computed and paid for each calendar month. Said taxes are
due and payable to the Chief Financial Officer on or before the 20th
day of the succeeding month.
A.
The Chief Financial Officer is hereby authorized and empowered to
administer, regulate, and collect payment of all taxes imposed by
this article.
B.
The Chief Financial Officer may order an audit of any taxpayer under
this article for the purpose of ascertaining the correctness or completeness
of any return or payment.
A.
The payment of delinquent taxes or transfer fees imposed by this
article shall be enforced in the same manner as provided for delinquent
real property taxes.
B.
In the event that the transfer tax or user tax imposed by this article
is not paid as and when due by a cannabis establishment, the unpaid
balance, and any interest accruing thereon, shall be a lien on the
parcel of real property comprising the cannabis establishment's
premises in the same manner as all other unpaid municipal taxes, fees,
or other charges. The lien shall be superior and paramount to the
interest in the parcel of any owner, lessee, tenant, mortgagee, or
other person, except the lien of municipal taxes, and shall be on
a parity with and deemed equal to the municipal lien the parcel for
unpaid property taxes due and owing in the same year.
C.
In the event that a lien is imposed on a delinquent taxpayer pursuant
to this section, the Township shall file in the office of the tax
collector a statement showing the amount and due date of the unpaid
balance and identifying the lot and block number of the parcel of
real property that comprises the delinquent cannabis establishment's
premises. The lien shall be enforced as a municipal lien in the same
manner as all other municipal liens are enforced.
