[Adopted 6-17-2019 by Ord. No. 1903-2019[1]]
[1]
Editor's Note: This article also repealed former Article II, Five-Year Exemption Program for Construction in Industrial Business Park Zone, adopted 7-6-2015 by Ord. No. 1792-2015, as amended; Article III, Five-Year Exemption Program for Improvements in Industrial Business Park Zone, adopted 7-6-2015 by Ord. No. 1792-2015, as amended; Article IV, Five-Year Exemption Program for Construction and Improvement of Commercial and Industrial Structures in Mays Landing Historic District, adopted 2-16-2016 by Ord. No. 1811-2016, as amended; Article V, Five-Year Exemption Program for Construction and Improvement of Multiple Dwellings in Mays Landing Historic District, adopted 2-16-2016 by Ord. No. 1811-2016; Article VI, Five-Year Exemption Program for Construction and Improvement of Dwellings in Mays Landing Historic District, adopted 2-16-2016 by Ord. No. 1811-2016; and Article VII, Five-Year Exemption Program for Construction and Improvement of Commercial and Industrial Structures in Tunney Property, adopted 5-1-2017 by Ord. No. 1847-2017.
The intention of this article is to effectuate and accomplish
the purposes authorized by N.J.S.A. 40A:21-1 et seq., which permits
municipalities to grant for periods of five years exemptions and/or
abatements, or both, from taxation in areas of the municipality in
need of rehabilitation. The intended purpose of this article is to
promote the improvement, rehabilitation and or construction of residential
dwellings, multiple dwellings, commercial structures, industrial structures,
and mixed-use structures within designated rehabilitation areas of
the Township of Hamilton, County of Atlantic, State of New Jersey.
The Township of Hamilton hereby authorizes the utilization of tax exemptions in accordance with Article VIII, Section I, Paragraph 6, of the New Jersey Constitution and establishes the eligibility of single-family residential dwellings, multiple dwellings, commercial and industrial structures, and mixed-use structures for five years to the maximum degree permitted by N.J.S.A. 40A:21-1 et seq. in any area designated as any eligible area as defined in § 269-9.
A.
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, those
words shall have the meanings as so defined unless a different meaning
is clearly expressed.
B.
AREA IN NEED OF REHABILITATION
ASSESSOR
EXEMPTION AND ABATEMENT OFFICER
MIXED-USE STRUCTURE
MUNICIPAL CHARGES
PROJECT
THE ACT
THE TOWNSHIP OF HAMILTON
Additional terms. As used in this article, the following definitions
shall apply:
The area(s) within the Township of Hamilton which have been
determined to be an area in need of rehabilitation or redevelopment
pursuant to the "Local Redevelopment and Housing Law" (N.J.S.A. 40A:12A-1
et seq.), which have been determined to be a "blighted area" pursuant
to the "Blighted Areas Act" (N.J.S.A. 40:55-21.1 et seq.[1]), or which have been determined to be in need of rehabilitation
pursuant to N.J.S.A. 54:4-3:72 et seq. or N.J.S.A. 54:4-3.121 et seq.[2]
The officer of the Township of Hamilton charged with the
duty of assessing real property for the purpose of general taxation.
The individual appointed by the Township Committee pursuant
to this article to administer the five-year exemption and abatement
programs provided by this chapter except where otherwise noted. The
phrase "E&A Officer" shall mean Exemption and Abatement Officer.
A structure with two or more different uses such as residential,
commercial, or industrial.
Property taxes, assessments, water or sewer charges and any
other charge for which a lien may be created, together with interest
and penalties thereon, including all advertising fees and costs of
sale.
Any improvement or construction undertaken by a single entity
which may include the construction, reconstruction, structural alteration,
relocation or enlargement of any building or other structure.
The Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1
et seq. enacted into law on or about January 18,1992, as amended and
supplemented.
The Township of Hamilton, County of Atlantic, State of New
Jersey.
C.
Where consistent with the context used in this article, words importing
the singular shall include the plural, words importing the plural
shall include the singular, and words importing one gender shall include
all other genders.
A.
The Mayor and Township Committee may enter into agreements with developers
and/or owners of property that are in areas in need of redevelopment
or rehabilitation within the Township of Hamilton, as determined by
the Mayor and Township Committee in accordance with N.J.S.A. 40A:12A-1
et seq., providing tax exemptions for the construction and rehabilitation
of dwellings, multiple dwellings, industrial structures, commercial
structures, and mixed-use structures within the Township of Hamilton
pursuant to the Act and the requirements of this article.
B.
Except as otherwise provided in §§ 269-14 and 269-16 herein, the Assessor may approve tax exemptions and/or abatements for the benefit of developers and/or owners of property, for any project with an estimate of costs less than $500,000, subject to the Act and the requirements of this article. Tax exemptions for any project with an estimate of costs exceeding $500,000 shall be subject to the review and approval of the Mayor and Township Committee pursuant to the Act and the requirements of this article.
Improvements to dwellings shall be eligible for a tax exemption
and/or abatement for a period of five years in accordance with the
following:
A.
Only improvements made to dwellings more than 20 years old are eligible
for tax exemption for a period of five years. For purposes of eligibility
under this section, a dwelling will be considered less than 20 years
old if in the last 20 years the dwelling has been demolished in its
entirety or where less than 60% of the original square footage of
the dwelling remains.
B.
Upon approval, the Assessor in determining value shall regard the
first $25,000 of the full and true value of improvements for each
dwelling unit primarily and directly affected by the improvements
as not increasing the value of the property, notwithstanding that
the value of the property to which the improvements are made is increased
thereby. The five-year exemption period shall commence on the first
day of the month following grant of the exemption. If the five-year
period expires leaving a partial year in the tax year, the Assessor
shall complete an added assessment as appropriate.
C.
An abatement for a dwelling may be granted with respect to the property
for a total of up to five years, but the annual amount of the abatement
granted to any single property may not exceed 30% of the annual amount
of the exemption granted under this section. The five-year abatement
period shall commence in the first full year following the tax year
in which the improvements are completed.
D.
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 has been granted pursuant
to this section or there is damage to the dwelling through action
of the elements sufficient to warrant a reduction.
Improvements to multiple dwellings shall be eligible for a tax
exemption and/or abatement for a period of five years in accordance
with the following:
A.
Upon approval, 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 the value of the property to which the improvements
are made is increased thereby.
B.
An abatement for a multiple dwelling may be granted with respect
to the property for a total of up to five years, but the annual amount
of the abatement shall not exceed 30% of the total cost of the improvement,
and the total amount of abatements granted to any single property
shall not exceed the total cost of the improvement.
C.
The five-year exemption period shall not commence until the first
full year following the tax year in which the improvements are completed.
D.
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 has been granted pursuant
to this section or there is damage to the dwelling through action
of the elements sufficient to warrant a reduction.
Improvements to commercial structures are eligible for tax exemption
for a period of five years in accordance with the following:
A.
Upon approval, in determining value, the Assessor 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.
B.
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.
The five-year exemption period shall not commence until the first
full year following the tax year in which the improvement is completed.
A.
New construction of commercial structures is eligible for tax exemption
for a period of five years. This exemption may only be approved by
ordinance of the Mayor and Township Committee on a project-by-project
basis.
B.
Pursuant to § 269-21 of this article, applicants for tax exemption shall provide the E&A Officer, on behalf of the Mayor and Township Committee, with an application setting forth all the following information:
(1)
A general description of the project for which exemption 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 Mayor
and Township Committee or Assessor, as applicable, to demonstrate
the structure and design of the project.
(4)
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.
(5)
A statement of the reasons for seeking tax exemption on the project
and a description of the benefits to be realized by the applicant
if a tax agreement is granted.
(6)
A good faith estimate of the cost of completing such project, together
with the expected method or plan of financing the improvements.
(7)
A construction time schedule and projected completion schedule.
(8)
A statement showing the real property taxes currently being assessed
at the project site, the estimated tax payments that would be made
annually by the applicant on the project during the period of the
agreement, and the estimated tax payments that would be made by the
applicant on the project during the first full year following the
termination or expiration of the tax agreement.
(9)
A description of any lease agreement between the applicant and proposed
users of the project and a history and description of the users' businesses.
(10)
A disclosure statement of the interests of all parties, including
subsidiary companies, in the project.
(12)
The signature of the owner and the owner's certification as
to the truth and accuracy of the contents contained in the application.
(13)
Such other pertinent information as the Mayor and Township Committee
may require on a case-by-case basis.
C.
The owner shall enter a written agreement with the Township of Hamilton
to pay a tax on the newly-constructed commercial structures to be
computed in accordance with the "Tax Phase-in Basis" formula set forth
in N.J.S.A. 40A:21-10. The agreement shall provide that the tax shall
be billed and collected in the same manner as any conventional taxes,
and any arrearages shall accrue at the rate of interest charged for
delinquent real estate taxes.
D.
The five-year exemption period shall not commence until the first
full year following the tax year in which the construction of the
commercial structures is completed.
E.
The E&A Officer, on behalf of the Township Committee, shall be
responsible for the administration and enforcement of the tax agreement
in accordance with the following:
(1)
In the event that a property owner subject to a tax agreement ceases to operate or disposes of the property or fails to meet the conditions for qualifying for the exemption and/or abatement set forth in § 269-14 herein, including but not limited to compliance with the requirements of the redevelopment plan or the Township of Hamilton's Zoning Ordinance,[2] the local property taxes due for all the prior years subject
to exemption and for the current year shall be payable as if no exemption
had been granted.
(2)
If 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 conditions, no additional tax shall be
due, the exemption shall continue and the agreement shall remain in
effect.
(3)
The E&A Officer, on behalf of the Township Committee, shall notify
the property owner, the Assessor and the Tax Collector of the amount
of taxes due within 15 days of the date of disqualification.
F.
Any tax agreement as authorized by this section shall only be available
wherein the use of the property is permitted by the existing zoning
standards of the Township's Municipal Code and not the result of a
variance.
Improvements to industrial structures are eligible for tax exemption
for a period of five years in accordance with the following:
A.
Upon approval, in determining value the Assessor 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.
B.
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.
The five-year exemption period shall not commence until the first
full year following the tax year in which the improvement is completed.
New construction of industrial structures is eligible for tax
exemption for a period of five years. This exemption may only be approved
by Ordinance of the Mayor and Township Committee on a project-by-project
basis.
A.
Applicants for tax exemption shall provide the Mayor and Township
Committee with an application setting forth all the following information:
(1)
A general description of the project for which exemption 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 Mayor
and Township Committee to demonstrate the structure and design of
the project.
(4)
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.
(5)
A statement of the reasons for seeking tax exemption on the project
and a description of the benefits to be realized by the applicant
if a tax agreement is granted.
(6)
A good faith estimate of the cost of completing such project, together
with the expected method or plan of financing the improvements.
(7)
A construction time schedule and projected completion schedule.
(8)
A statement showing the real property taxes currently being assessed
at the project site, the estimated tax payments that would be made
annually by the applicant on the project during the period of the
agreement, and the estimated tax payments that would be made by the
applicant on the project during the first full year following the
termination or expiration of the tax agreement.
(9)
A description of any lease agreement between the applicant and proposed
users of the project and a history and description of the users' businesses.
(10)
A disclosure statement of the interests of all parties, including
subsidiary companies, in the project.
(11)
The owner's certification that the improvement as proposed meets
the requirements of the redevelopment plan or the Township of Hamilton's
zoning ordinance.
(12)
The signature of the owner and the owner's certification as
to the truth and accuracy of the contents contained in the application.
(13)
Such other pertinent information as the Mayor and Township Committee
may require on a case-by-case basis.
B.
(Reserved)
C.
The owner
shall enter a written agreement with the Township of Hamilton to pay
a tax on the newly-constructed industrial structures to be computed
in accordance with the "Tax Phase-in Basis" formula set forth in N.J.S.A.
40A:21-10. The agreement shall provide that the tax shall be billed
and collected in the same manner as any conventional taxes, and any
arrearages shall accrue at the rate of interest charged for delinquent
real estate taxes.
D.
The five-year exemption period shall not commence until the first
full year following the tax year in which the construction of the
industrial structures is completed.
E.
The E&A Officer, on behalf of the Mayor and Township Committee,
shall be responsible for the administration and enforcement of the
tax agreement in accordance with the following:
(1)
In the event that a property owner subject to a tax agreement ceases
to operate or disposes of the property or fails to meet the conditions
for qualifying for the exemption and/or abatement set forth in this
article, including but not limited to compliance with the redevelopment
plan or the Township of Hamilton's Zoning Ordinance[1], the local property taxes due for all the prior years
subject to exemption and for the current year shall be payable as
if no exemption had been granted.
(2)
If 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 conditions, no additional tax shall be
due, the exemption shall continue and the agreement shall remain in
effect.
(3)
The E&A Officer, on behalf of the Mayor and Township Committee,
shall notify the property owner and the Assessor of the amount of
taxes due within 15 days of the date of disqualification.
F.
Any tax agreement as authorized by this section shall only be available
wherein the use of the property is permitted by the existing zoning
standards of the Township's Municipal Code and not the result of a
variance.
Construction of 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.
The Assessor shall determine on October 1 of the year following
the date of the completion of any improvement or construction the
true taxable value thereof. The amount of tax to be paid for the first
full tax year following completion of any improvement or construction
for any portion thereof not subject to an assessment or exemption
shall be based on the valuation of the property by the Assessor pursuant
to this section and shall continue in the appropriate manner for each
of the five full tax years of the exemption period.
All tax exemption agreements shall provide that the property
owner is subject to all applicable federal, state and local laws and
regulations, including but not limited to laws and regulations governing
pollution control, worker safety, discrimination in employment, housing
provisions, zoning, planning and building code requirements.
The position of Exemption and Abatement Officer ("E&A Officer")
is hereby created for the purpose of administering the Township's
five-year exemption and abatement programs under this chapter. The
Township shall appoint the E&A Officer by resolution of the Township
Committee at its annual reorganization meeting for a period of one-year.
The initial E&A Officer shall be appointed by resolution of the
Township Committee at its first scheduled meeting following the effective
date of this provision and shall serve until the next annual reorganization
meeting. The compensation for the E&A Officer shall be set by
ordinance.
A.
Applicants for tax exemption shall submit an application to the Assessor
or E&A Officer, as applicable, on a form prescribed by the Director
of the Division of Taxation in the Department of Treasury within 30
calendar days following the completion of the improvement or new construction.
B.
The E&A Officer shall forward a copy of the completed application
to the Mayor and Township Committee within 30 days of the receipt
of same for all tax exemption requests requiring Mayor and Township
Committee approval. Following receipt of a completed application as
set forth above, the Mayor and Township Committee or the Assessor,
as applicable, shall review same to determine whether an exemption
and/or abatement shall be granted.
C.
All tax exemptions and all tax agreements shall be recorded and made
a permanent part of the official tax records of the Township of Hamilton,
which records shall contain a notice of termination date thereof.
D.
Any tax exemption approved pursuant to this article shall apply to
the property taxes levied for Township of Hamilton purposes, school
purposes, county government purposes, and for any other property tax
purposes.
E.
Every application for exemption shall be subject to the provisions
of this article as well as the provisions of N.J.S.A. 40A:21-1 et
seq., and all rules and regulations promulgated thereunder.
No exemptions shall be granted for any property for which property
taxes or any other municipal charges, including interest, are delinquent
or remain unpaid or for which penalties for nonpayment are due or
for any property for which a casino license has been issued.
Any additional improvement or new construction completed to
a property already granted an exemption during the period in which
the exemption is in effect shall be eligible for an additional exemption,
just as if such property had not received a previous exemption. The
additional improvement or new construction shall be considered as
separate for purposes of calculating the exemption, except that the
assessed value of any previous improvement or new construction shall
be added to the assessed valuation as it was prior to that improvement
or new construction for the purpose of determining the assessed value
of the property from which any additional exemption is to be subtracted.
Upon termination of any tax exemption or any tax agreement approved
pursuant to this article, 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 tax exemption or any tax agreement, from qualifying
for and receiving the full benefits of any other tax preferences provided
by law.
During the first year following adoption of this article, the
Assessor shall include an appropriate notice in the mailing of the
annual property tax bills to property owners advising them of the
availability of tax exemptions under this article.
A.
The E&A Officer, on behalf of the Mayor and Township Committee,
shall report on or before October 1 of each year, to the Director
of the Division of Local Government Services in the Department of
Community Affairs, the Director of the Division of Taxation in the
Department of the Treasury, and to the Mayor and Township Committee,
the total amount of real property taxes exempted within the Township
in the current tax year for each of the following:
B.
In the case of Subsection A(3) above, as applicable, the report shall state instead the total amount of payments made in lieu of taxes according to the formula utilized by the Township of Hamilton, and the difference between that total amount and the total amount of real property taxes which would have been paid on the project had the tax agreement not been in effect, for the current tax year.
C.
The E&A Officer shall be responsible for ensuring the Township's
compliance with the provisions of this section and any additional
requirements imposed by statute.
Appeal of any determination made by the Township of Hamilton
under the terms of this article shall be made to the Atlantic County
Board of Taxation.
No application for tax exemption shall be filed for an exemption
to take initial effect in the 11th tax year after initial adoption,
or any tax year thereafter, unless this article is readopted by the
Mayor and Township Committee in accordance with N.J.S.A. 40A:21-4.
The various parts, sections and clauses of this article are
hereby declared to be severable. If any part, sentence, paragraph,
section or clause is adjudged to be unconstitutional or invalid by
a court of competent jurisdiction, the remainder of this article shall
not be affected thereby.
Captions contained in this article have been inserted only for
the purposes of facilitating reference to the various sections and
are not intended and shall not be utilized to construe the intent
and meaning of the text of any section.
Any ordinances or parts thereof in conflict with the provisions
of this article are hereby repealed.
This article shall take effect upon final passage and publication
as provided by law, provided that any exemptions approved thereafter
shall not take effect until the following tax year. After the effective
date, this article shall only apply to projects that have not received
a construction permit as of the effective date of this article.
