[Adopted 6-19-1990 by Ord. No. 12-90; 6-4-2008 by Ord. No. 9-2008; amended 11-8-2017 by Ord. No. 69-2017]
New Jersey statutes permit municipalities to provide special
designations to certain areas within their boundaries based on the
conditions present within those locations, including designations
as "an area in need of rehabilitation" or as "an area in need of redevelopment."
The State of New Jersey has designated a portion of the City
of Orange Township ("Orange" or the "Township") as an Urban Enterprise
Zone or UEZ.
The Township desires to encourage the improvement of existing
properties in any area as may be designated now or in the future as
an area in need of rehabilitation, an area in need of redevelopment
or an Urban Enterprise Zone.
The Five-Year Exemption and Abatement Law (N.J.S.A. 40A:21-1
et seq.) permits municipalities to authorize a program by which qualified
property owners may receive an exemption and/or an abatement from
some portion of their obligations for payment of real property taxes.
There is hereby established a program for the granting of exemptions
and/or abatements pursuant to the terms of the Five-Year Exemption
and Abatement Law (N.J.S.A. 40A:21-1 et seq.), subject to following
terms and conditions.
The following terms are defined as follows:
That portion of the assessed value of a property as it existed
prior to construction, improvement or conversion of a building or
structure thereon, which is exempted from taxation pursuant to this
Act.
A portion or all of a municipality which has been determined
to be an area in need of rehabilitation or redevelopment pursuant
to the "Local Redevelopment and Housing Law," P.L. 1992, c. 79 (C.
40A:12A-1 et al.), a "blighted area" as determined pursuant to the
"Blighted Areas Act," P.L. 1949, c. 187 (C. 40:55-21.1 et seq.), or
which has been determined to be in need of rehabilitation pursuant
to P.L. 1975, c. 104 (C. 54:4-3.72 et seq.), P.L. 1977, c. 12 (C.
54:4-3.95 et seq.), or P.L. 1979, c. 233 (C. 54:4-3.121 et seq.).
The officer of a taxing district charged with the duty of
assessing real property for the purpose of general taxation.
A structure or part thereof used for the manufacturing, processing
or assembling of material or manufactured products, or for research,
office, industrial, commercial, retail, recreational, hotel or motel
facilities, or warehousing purposes, or for any combination thereof,
which the governing body determines will tend to maintain or provide
gainful employment within the municipality, assist in the economic
development of the municipality, maintain or increase the tax base
of the municipality and maintain or diversify and expand commerce
within the municipality. It shall not include any structure or part
thereof used or to be used by any business relocated from another
qualifying municipality unless: the total square footage of the floor
area of the structure or part thereof used or to be used by the business
at the new site together with the total square footage of the land
used or to be used by the business at the new site exceeds the total
square footage of that utilized by the business at its current site
of operations by at least ten percent (10%); and the property that
the business is relocating to has been the subject of a remedial action
plan costing in excess of two hundred fifty thousand dollars ($250,000.)
performed pursuant to an administrative consent order entered into
pursuant to authority vested in the Commissioner of Environmental
Protection under P.L. 1970. c. 33 (C. 13:1D-1 et seq.), the "Water
Pollution Control Act," P.L. 1977, c. 74 (C. 58:10A-1 et seq.), the
"Solid Waste Management Act," P.L. 1970, c. 39 (C. 13:1E-1 et seq.),
and the "Spill Compensation and Control Act," P.L. 1976, c. 141 (C.
58:10-23.11 et seq.).
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
A property created or recorded as a condominium pursuant
to the "Condominium Act," P.L. 1969, c. 257 (C. 46:8B-1 et seq.).
A provision of a new dwelling, multiple dwelling or commercial
or industrial structure, or the enlargement of the volume of an existing
multiple dwelling or commercial or industrial structure by more than
thirty percent (30%), but shall not mean the conversion of an existing
building or structure to another use.
The alteration or renovation of a nonresidential building
or structure, or hotel, motel, motor hotel or guesthouse, in such
manner as to convert the building or structure from its previous use
to use as a dwelling or multiple dwelling.
A housing corporation or association, wherein the holder
of a share or membership interest thereof is entitled to possess and
occupy for dwelling purposes a house, apartment, or other unit of
housing owned by the corporation or association, or to purchase a
unit of housing owned by the corporation or association.
When used with respect to abatements for dwellings or multiple
dwellings, only the cost or fair market value of direct labor and
materials used in improving a multiple dwelling, or of converting
another building or structure to a multiple dwelling, or of constructing
a dwelling, or of converting another building or structure to a dwelling,
including any architectural, engineering, and contractor's fees
associated therewith, as the owner of the property shall cause to
be certified to the governing body by an independent and qualified
architect, following the completion of the project.
A building or part of a building used, to be used or held
for use as a home or residence, including accessory buildings located
on the same premises, together with the land upon which such building
or buildings are erected and which may be necessary for the fair enjoyment
thereof, but shall not mean any building or part of a building, defined
as a "multiple dwelling" pursuant to the "Hotel and Multiple Dwelling
Law," P.L. 1967, c. 76 (C. 55:13A-1 et seq.). A dwelling shall include,
as they are separately conveyed to individual owners, individual residences
within a cooperative, if purchased separately by the occupants thereof,
and individual residences within a horizontal property regime or a
condominium, but shall not include "general common elements" or "common
elements" of such horizontal property regime or condominium as defined
pursuant to the "Horizontal Property Act," P.L. 1963, c. 168 (C. 46:8A-1
et seq.), or the "Condominium Act," P.L. 1969, c. 257 (C. 46:8B-1
et seq.), or of a cooperative, if the residential units are owned
separately.
That portion of the assessor's full and true value of
any improvement, conversion alteration, or construction not regarded
as increasing the taxable value of a property pursuant to this Act.
A property submitted to a horizontal property regime pursuant
to the "Horizontal Property Act," P.L. 1963, c. 168 (C. 46:8A-1 et
seq.).
A modernization, rehabilitation, renovation, alteration or
repair which produces a physical change in an existing building or
structure that improves the safety, sanitation, decency or attractiveness
of the building or structure as a place for human habitation or work,
and which does not change its permitted use. In the case of a multiple
dwelling, it includes only improvements which affect common areas
or elements, or three (3) or more dwelling units within the multiple
dwelling. In the case of a multiple dwelling or commercial or industrial
structure, it shall not include ordinary painting, repairs and replacement
of maintenance items, or an enlargement of the volume of an existing
structure by more than thirty percent (30%). In no case shall it include
the repair of fire or other damage to a property for which payment
of a claim was received by any person from an insurance company at
any time during the three (3) year period immediately preceding the
filing of an application pursuant to this Act.
A building or structure meeting the definition of "multiple
dwelling" set forth in the "Hotel and Multiple Dwelling Law," P.L.
1967, c. 76 (C. 55:13A-1 et seq.), and means for the purpose of improvement
or construction the "general common elements" and "common elements"
of a condominium, a cooperative, or a horizontal property regime.
To the extent that they are located in areas that have been
designated by the Township as "an area in need of rehabilitation;"
or "an area in need of redevelopment;" or a part of the City of Orange
Township Urban Enterprise Zone, the following shall be eligible for
exemptions and/or abatements from tax in accordance with this Article.
A.
Improvement of a dwelling.
B.
Construction of a dwelling;
C.
Conversion of a nonresidential structure into a dwelling.
D.
Improvement of a multiple dwelling.
E.
Conversion of a nonresidential structure into a multiple dwelling.
F.
Improvement of a commercial or industrial structure.
G.
Construction of a commercial or industrial structure.
H.
Construction of a multiple dwelling.
A.
To the extent that an improvement has been made to an eligible dwelling, the Township shall regard the first twenty-five thousand dollars ($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 twenty (20) years old, as not increasing the value of the property for a period of five (5) years, notwithstanding that the value of the property to which the improvements are made is increased thereby. To the extent that the value of the improvement is less than twenty-five thousand dollars ($25,000.), the exemption shall be for the full amount of the value of the improvement. During the exemption period, the assessment on the property shall not be less than the assessment thereon existing immediately prior to the improvements, except as provided pursuant to Subsection B of this section, or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
B.
To the extent that an improvement has been made to an eligible dwelling, the Township shall provide, for a period of five (5) years, for the abatement of a portion of the assessed value of property receiving the exemption as it existed immediately prior to the improvement equal to thirty percent (30%) of the annual amount of the exemption granted pursuant to subsection A of this section.
C.
To the extent that a dwelling has been created either through construction
or conversion, the Township shall regard thirty percent (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 period of five (5) years, notwithstanding that the
value of the property is increased thereby.
D.
To the extent that a dwelling has been created either through construction
or conversion, the Township shall provide, for a period of five (5)
years, for the abatement of a portion of the assessed value of property
receiving the exemption. Such abatement shall be in the amount equal
to twenty percent (20%) of the total cost of the construction or conversion
alteration.
A.
To the extent that an improvement has been made to an eligible multiple
dwelling, the Township shall regard the assessor's full and true
value of improvements as not increasing the value of the property
for a period of five (5) 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 multiple dwelling
through action of the elements sufficient to warrant a reduction.
B.
To the extent that a multiple dwelling has been created through conversion
of a nonresidential structure, the Township shall regard the assessor's
full and true value of the conversion alterations made, as not increasing
the value of the property for a period of five (5) years, notwithstanding
that the value of the property is increased thereby.
A.
To the extent that an improvement has been made to an eligible commercial
or industrial structure, the Township shall regard the assessor's
full and true value of improvements as not increasing the value of
the property for a period of five (5) 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 commercial
or industrial structure through action of the elements sufficient
to warrant a reduction.
A.
Applications for exemptions or abatements for construction of multiple dwellings and commercial or industrial structures shall be applied for and considered on a project-by-project basis by the Township. All such applications must conform to the requirements of § 187-16 and, if approved, shall result in a tax agreement with the applicant consistent with § 187-17.
Applicants for tax exemption and abatement for construction
of multiple dwellings and commercial or industrial structures shall
provide the Township with an application setting forth:
A.
A general description of a project for which exemption and abatement
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 (2) years of completion of
the project;
E.
A statement of the reasons for seeking tax exemption and abatement
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 (1) the real property taxes currently being assessed
at the project site; (2) estimated tax payments that would be made
annually by the applicant on the project during the period of the
agreement, and (3) 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;
H.
If the project is a commercial or industrial structure, a description
of any lease agreements between the applicant and proposed users of
the project, and a history and description of the users' businesses;
I.
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 lease or resale restrictions to apply to the
dwellings' units respecting low or moderate income housing;
J.
Such other pertinent information as the governing body may require.
Such applications must be submitted on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury within thirty (30) days, including Saturdays and Sundays following the completion of the construction. Such applications shall be evaluated on a project-by-project basis pursuant to the criteria set forth in this section and in accordance with the procedure set forth at § 187-17.
No application for an exemption and/or abatement submitted pursuant
to this section shall be accepted unless it is accompanied by full
payment of the required application fee. The fee shall be in the amount
of two hundred fifty dollars ($250.). These fees shall be received
as compensation for the legal review and related work of the Township's
departments, agencies, officials, agents and employees in reviewing
the application. All checks shall be made payable to the City of Orange
Township. This application fee shall be nonrefundable, but may be
waived by a resolution of the Township Council.
The governing body may enter into written agreements with the
applicants for the exemption and abatement of local real property
taxes for construction of multiple dwellings and commercial or industrial
structures. An 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 following
formulas:
A.
Cost basis: The agreement may provide for the applicant to pay to
the Township in lieu of full property tax payments an amount equal
to two percent (2%) of the cost of the project. For the purposes of
the agreement, "the cost of the project" means only the cost or fair
market value of direct labor and all materials used in the construction,
expansion, or rehabilitation of all buildings, structures, and facilities
at the project site, including the costs, if any, of land acquisition
and land preparation, provision of access roads, utilities, drainage
facilities, and parking facilities, together with architectural, engineering,
legal, surveying, testing, and contractors' fees associated with
the project; which the applicant shall cause to be certified and verified
to the governing body by an independent and qualified architect, following
the completion of the project.
B.
Gross revenue basis: the agreement may provide for the applicant
to pay to the Township in lieu of full property tax payments an amount
annually equal to fifteen percent (15%) of the annual gross revenues
from the project. For the purposes of the agreement, "annual gross
revenues" means the total annual gross rental and other income payable
to the owner of the project from the project. If in any leasing, any
real estate taxes or assessments on property included in the project,
any premiums for fire or other insurance on or concerning property
included in the project, or any operating or maintenance expenses
ordinarily paid by the landlord, are to be paid by the tenant, then
those payments shall be computed and deemed to be part of the rent
and shall be included in the annual gross revenue. The tax agreement
shall establish the method of computing the revenues and may establish
a method of arbitration by which either the landlord or tenant may
dispute the amount of payments so included in the annual gross revenue.
C.
Tax phase-in basis: the agreement may provide for the applicant to
pay to the Township in lieu of full property tax payments an amount
equal to a percentage of taxes otherwise due, according to the following
schedule:
(1)
In the first full year after completion, no payment in lieu of taxes
otherwise due;
(2)
In the second full year after completion, an amount not less than
twenty percent (20%) of taxes otherwise due;
(3)
In the third full year after completion, an amount not less than
forty percent (40%) of taxes otherwise due;
(4)
In the fourth full year after completion, an amount not less than
sixty percent (60%) of taxes otherwise due;
(5)
In the fifth full year after completion, an amount not less than
eighty percent (80%) of taxes otherwise due.
A.
No application for an exemption and/or abatement submitted pursuant
to this Article shall be accepted unless it is accompanied by full
payment of the required application fee. The fee shall be in the amount
of two hundred fifty dollars ($250.00). These fees shall be received
as compensation for the legal review and related work of the Township's
departments, agencies, officials, agents and employees in reviewing
the application. All checks shall be made payable to the City of Orange
Township. This application fee shall be nonrefundable, but may be
waived by a resolution of the Township Council.
B.
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. The application
shall be filed with the assessor within thirty (30) days, including
Saturdays and Sundays following the completion of the improvement,
conversion alteration or construction. Every application for exemption,
or exemption and abatement which is filed within the time specified,
shall be approved and allowed by the assessor to the degree that the
application is consistent with the provisions of this Article and
further provided that the improvement, conversion or construction
for which the application is made qualifies as an improvement, a conversion
or construction pursuant to the provisions the Five-Year Exemption
and Abatement Law. The granting of an exemption, or exemption and
abatement 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.
C.
Approval by the assessor of a valid application shall be the only
action required to approve any exemption and/or abatement that is
authorized by this Article. After approval by the assessor, the exemption
and/or abatement shall take effect at such time as prescribed within
the Five-Year Exemption and Abatement Law.
A.
No exemption and/or abatement shall be granted pursuant to this Article
with respect to any property for which real estate taxes or other
municipal charges are delinquent or remain unpaid, or for which penalties
and interest for nonpayment of taxes are due.
B.
If, during the term of any exemption and/or abatement granted pursuant
to this Article, the property that is the subject of the exemption
and/or abatement becomes delinquent in the paying of real estate taxes
or other municipal charges to such a degree that the property is eligible
to have a lien placed against its title due to such delinquency, the
exemption and/or abatement for that property shall be terminated as
of the 31st day after the date that the property became eligible to
have such lien placed against it.
If, during the term of any exemption and/or abatement granted
pursuant to this Article, the title to the affected property is transferred
to another party, that exemption and/or abatement may not be assigned
to the new owner unless such assignment shall be approved by Orange
by resolution of the Orange Municipal Council. The sole exception
to this prohibition shall be the transfer of ownership of a property
from the developer of that property to the initial purchaser of that
property. In such cases, the exemption and/or abatement may be assigned
to such initial purchaser by the filing of written notice to the sale
with the City Tax Assessor, without the requirement for any action
by the Municipal Council.
If, during the term of any exemption and/or abatement granted
pursuant to this Article, the property that is the subject of the
exemption and/or abatement is cited by Orange for violation of its
Uniform Construction Code, its Property Maintenance Code, its Zoning
Ordinance or any other municipal ordinance regarding the maintenance
and operation of real property, and if such violation is not abated
as of the date ninety (90) calendar days after the date of the violation
notice, the exemption and/or abatement for that property shall be
terminated as of the 91st day after the date of issuance of the violation
notice.
The exemption and abatement of real property taxes provided
pursuant to this Article shall apply to property taxes levied for
municipal purposes, school purposes, and County government purposes.
The added assessment provisions of Section 3 of P.L. 1941, c.
397 (c. 54:4-63.3) and the omitted assessment provisions of Section
9 P.L. 1947, c. 413 (c. 54:4-63.20) and Section 1 of P.L. 1968, c.
184 (c. 54:63-33) shall not be applicable to any improvements that
are exempt from taxation under this Article.
Any property, which is granted an exemption and/or abatement
pursuant to this Article, shall be subject to an inspection by the
Township on an annual basis to ensure that the property is in compliance
with all ordinances, regulations, and safety codes of the Township.
Any property, which is determined to be in violation of any ordinance,
regulation, and/or safety code of the Township, shall be subject to
any penalties and fines or any other remedial action permitted by
law or ordinance.
If any provision of this Article is legally invalid or is hereafter
found to be legally invalid, the remainder of the Article shall remain
in full force and effect.
Nothing contained in this Article shall be so construed as to
limit or deprive the Township of any rights or privileges, which are
now or in the future conferred on the Township by state law or federal
statute.
This Article shall take effect upon final passage and publication
and in accordance with the laws of the state.
