[Ord. No. 96-631]
The Mayor and Council of the Borough of South Belmar hereby determine to utilize the authority granted under Article VIII, Section I, paragraph 6 of the New Jersey Constitution to establish the eligibility of dwellings, multiple dwellings, commercial and industrial structures for exemptions and abatements to the maximum degree permitted by P.L. 1991, c. 441 throughout the entire municipality.
This section authorizes the Borough of South Belmar to grant exemptions and abatements to commence and take effect in the 1997 tax year and thereafter.
The Mayor and Council hereby determine to provide for the exemption from taxation of improvements to dwellings more than twenty (20) years old. In determining the value of real property, the Borough shall regard the first twenty-five thousand ($25,000.00) dollars in the assessor's 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 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, or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
The Mayor and Council hereby determine to provide for an exemption of thirty (30%) percent of the assessor's full and true value for each of the first five (5) years of construction of new dwellings or of the conversion of other buildings and structures, including unutilized public buildings, to dwelling use. The term "dwelling" includes condominium and cooperative type residential units and is consistent with the definition of that term as noted in P.L. 1991, c. 441. This exemption is to be granted notwithstanding that the value of the property upon which the construction or conversion occurs is increased thereby.
The Mayor and Council hereby determine to provide an exemption from taxation of improvements to commercial and industrial structures. Such an improvement, as defined under P.L. 1991, c. 441, shall not include ordinary painting, repairs and replacement items or an enlargement of the volume of the existing structure by more than thirty (30%) percent. The exemption shall be granted for a five (5) year period and shall not increase the value of the property by the value of the improvement, 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 improvement, unless there is damage to the structure through action of the elements sufficient to warrant a reduction.
This section authorizes the exemption for improvements of commercial and industrial structures to be granted only by the Governing Body on an individual basis after review, evaluation and approval of each application.
The Mayor and Council hereby determine to grant exemption and abatement from taxation for the new construction of commercial and industrial structures and multiple dwellings pursuant to the procedures set forth in P.L. 1991, C. 441 and in this section.
Applicants for tax exemption and abatement for new construction of commercial or industrial structures or multiple dwellings shall provide the Governing Body of the Borough of South Belmar with an application setting forth the following information:
A general description of a project for which exemption and abatement is sought;
A legal description of all real estate necessary for the project;
Plans, drawings and other documents as may be required by the Governing Body to demonstrate the structure and design of the project;
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;
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;
Estimate of the cost of completing such project;
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;
If the project is a commercial or industrial structure, a description of any lease agreement between the applicant and proposed users of the project, and a history and description of the users' businesses.
If the project is a multiple dwelling, a description of the number and type 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 any rental lease or resale restrictions to apply to the dwelling units respecting low or moderate income housing.
Such other pertinent information as the Governing Body may require on a case-by-case basis.
Following the adoption of an ordinance authorizing a tax agreement for a particular project, the Governing Body of the Borough of South Belmar shall enter into a written agreement with an applicant for the exemption and abatement of local property taxes. The agreement shall provide for the applicant to pay the municipality in lieu of full property taxes an amount equal to a percentage of taxes otherwise due according to the following schedule:
In the first full tax year after completion, no payment in lieu of taxes otherwise due;
In the second tax year, an amount not less than twenty (20%) percent of taxes otherwise due;
In the third tax year, an amount not less than forty (40%) percent of taxes otherwise due;
In the fourth tax year, an amount not less than sixty (60%) percent otherwise due;
In the fifth tax year, an amount not less than eighty (80%) percent of taxes otherwise due;
The Clerk of the Borough of South Belmar is authorized to forward a copy of all executed abatement agreements entered into pursuant to this ordinance to the Director of the Division of Local Government Services in the Department of Community Affairs within thirty (30) days of the date of execution.
In the event 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 abatement, the local property taxes due for all the prior years subject to abatement and for the current year shall be payable as if no exemption or abatement had been granted. The Tax Collector of the Borough of South Belmar shall notify the property owner within fifteen (15) days of the date of disqualification of the amount of taxes due. In the event 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 tax shall be due, the exemption and abatement shall continue and the agreement shall remain in effect.
No exemption or abatement shall be granted or tax agreement entered into pursuant to this section for any property for which property taxes are delinquent or remain unpaid, or for which penalties for nonpayment of taxes are due.
Every application submitted pursuant to this section shall be on a form prescribed by the Director of the Division of Taxation and shall be filed with the Tax Assessor of the Borough of South Belmar, as a condition to approval, within thirty (30) days, including Saturdays and Sundays, following the completion of the improvement, conversion or construction.
At the termination of an agreement for tax abatement or exemption authorized pursuant to this section, the project shall be subject to all applicable real property taxes as provided by State laws and regulations and local ordinances, provided that nothing herein shall be deemed to prohibit the project or improvement at the termination of the agreement for tax abatement from qualifying for and receiving the full benefits of any other tax preference provided by law.
This section shall, upon final passage, approval, and publication as provided by law, take effect in the 1997 tax year and thereafter.