[Ord. No. 96-631]
a.
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.
b.
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.
c.
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.
d.
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.
e.
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.
f.
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.
g.
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.
h.
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:
1.
A general description of a project for which exemption and abatement
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 Governing
Body 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 (2) years of completion of
the project;
5.
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;
6.
Estimate of the cost of completing such project;
7.
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;
8.
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.
9.
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.
10.
Such other pertinent information as the Governing Body may require
on a case-by-case basis.
i.
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:
1.
In the first full tax year after completion, no payment in lieu of
taxes otherwise due;
2.
In the second tax year, an amount not less than twenty (20%) percent
of taxes otherwise due;
3.
In the third tax year, an amount not less than forty (40%) percent
of taxes otherwise due;
4.
In the fourth tax year, an amount not less than sixty (60%) percent
otherwise due;
5.
In the fifth tax year, an amount not less than eighty (80%) percent
of taxes otherwise due;
j.
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.
k.
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.
l.
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.
m.
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.
n.
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.
o.
This section shall, upon final passage, approval, and publication
as provided by law, take effect in the 1997 tax year and thereafter.
