[Ord. No. 3059 Preamble]
The Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1,
et seq., (the "Act") enables municipalities which have been designated
as in need of rehabilitation to exempt or abate local property taxes
imposed upon eligible dwellings, commercial and industrial structures.
The entire area of the City of Asbury Park (the "City") has been designated
by the Department of Community Affairs to be an area in need of rehabilitation
and is in an area endangered by blight and in need of rehabilitation
as measured by physical deterioration of buildings and the maintenance
thereof, the age of building stock and other structures and arrearages
in real property taxes due on buildings, structures and land. The
City Council of the City of Asbury Park has determined that it is
in the best interests of the City to encourage the renovation and
rehabilitation and new construction of commercial and industrial structures,
and residential buildings.
[Ord. No. 3059 §§ 2,
3]
The City Council hereby determines to utilize the authority
granted under Article VIII, Section I, Paragraph 6 of the New Jersey
Constitution to establish the eligibility of dwellings, and commercial
and industrial structures for exemptions as provided in the within
section and as permitted by the Act throughout the entire municipality.
This section authorizes the City to grant exemptions up to a
five-year period to commence and take effect in the 2014 tax year
and thereafter. This section shall lapse, unless readopted, in the
2018 tax year and no exemptions shall be granted after December 31,
2018 tax year without such re-adoption.
[Ord. No. 3059 § 4]
As used in this section:
a.
Qualifying
commercial or industrial structures shall mean:
1.
Structures
or parts 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 will tend to maintain
or provide gainful employment within the City, assist in the economic
development of the City, maintain or increase the tax base of the
City and maintain or diversify and expand commerce within the City.
2.
Not included
as qualifying commercial or industrial structures are structures or
parts 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 (10%) percent; and the property that
the business is relocating to has been the subject of a remedial action
plan costing in excess of $250,000.00 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. 13:10-1, 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.).
b.
A renovation
housing project shall mean any work or undertaking to provide a decent,
safe, and sanitary single-family dwelling, to exclusively benefit
at least half of the number of people occupying a dwelling as their
primary residence.
c.
An Exemption shall mean 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 the Act.
d.
All other
terms utilized in this section not specifically defined herein shall
conform to the meaning identified in the Act.
[Ord. No. 3059 §§ 5,
6]
a.
The City Council hereby determines to provide for the exemption from
taxation of improvements (1) resulting from a renovation housing project
and (2) to dwellings more than twenty (20) years old. The term "dwelling,"
for purposes of this subsection, shall include condominium residential
units but not cooperative type residential properties. The City shall
regard the Assessor's full and true value of the improvements
for each renovation housing project 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. In determining the value of real property for each dwelling
unit, the City shall regard the first $25,000.00 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 any property
pursuant to this subsection shall not be less than the assessment
thereon existing immediately prior to the improvements, except if
there is damage to the dwelling through action of the elements sufficient
to warrant a deduction.
b.
The City Council hereby determines to provide for an exemption of
thirty percent (30%) 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,"
for purposes of this Paragraph, shall include condominium residential
units but not cooperative type residential units. This exemption is
to be granted notwithstanding that the value of the property upon
which the construction or conversion occurs is increased thereby.
[Ord. No. 3059 § 7]
The exemptions identified in § 10-1.4 require the following application procedure:
a.
An application must be submitted to and filed with the City's
Tax Assessor no later than thirty (30) days, including Saturdays and
Sundays, following completion of the improvement, conversion, alteration
or construction. An application may be filed with the Tax Assessor
any time prior to such deadline. "Completion" means that the subject
improvement is substantially ready for the intended use for which
it is constructed. Such completion is substantially ready for the
intended use for which it is constructed. Such completion may be evidenced
by the issuance of a Certificate of Occupancy or like document by
the City's building inspector(s).
b.
The application shall be on a form prescribed by the Director of
the Division of Taxation and shall be available to claimants at the
City's municipal building.
c.
Each application for exemption from taxation of improvements resulting
from a renovation housing project must demonstrate that the applicant
meets the definition of a renovation housing project and the criteria
for exemption set forth in the Act.
d.
Every application for exemption timely filed with the Tax Assessor
shall be approved and allowed by the Assessor if the application is
consistent with the statute and this section and the subject property
qualifies for the exemption as provided herein.
e.
The granting of the exemption shall be recorded and made a permanent
part of the official tax records of the City and its Tax Assessor.
[Ord. No. 3059 § 8]
In addition to the Tax Assessor's authority to grant exemptions identified in § 10-1.4, this section also authorizes the exemption for up to the Assessor's full and true value of the "improvements" to existing commercial and industrial structures as may be granted only by the governing body on an individual basis after review, evaluation and approval of each application by resolution. The application procedure for seeking such an exemption shall be consistent with the procedures outlined in § 10-1.9. However, the granting of an exemption under this subsection shall not require the adoption of an ordinance nor a written tax agreement. An "improvement" is defined under N.J.S.A. 40A:21-3n, which definition is fully incorporated herein, and includes the renovation, rehabilitation, repair, and alteration of an existing building that improves the safety and attractiveness of the building, but does not include ordinary painting, repairs, and replacement of maintenance items nor the enlargement of the volume of an existing structure by more than thirty percent (30%).
The City Council hereby further determines to grant exemptions
from taxation for the construction of commercial and industrial structures
pursuant to the procedures set forth in the Act and in this section.
The term "construction" is defined under N.J.S.A. 40A:21-3g, which
definition is fully incorporated herein, and includes the construction
of a new commercial or industrial building or the enlargement of an
existing commercial or industrial building by more than thirty percent
(30%), but shall not mean the conversion of an existing building or
structure to another use.
For purposes of subsections 10-1.6 and 10-1.7, the term commercial structure relates to office, retail and like uses, but does not include multiple dwelling type (three or more rental units) structures. In the event a structure includes a mix of commercial and multiple dwelling uses, the exemption shall only apply to that component of the structure relating to commercial use.
[Ord. No. 3059 § 11]
Applicants for tax exemption under § 10-1.7 above shall provide the Governing Body of the City with an application setting forth the following information:
a.
A general description of a project for which 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 (2) years of completion of
the project;
e.
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;
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.
A description of any lease agreement 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
on a case-by-case basis.
j.
The original and six (6) copies of the application shall be submitted
to the City Clerk no later than thirty (30) days following completion
of the project, including Saturdays and Sundays. An application may
be filed with the City Clerk any time prior to such deadline. "Completion"
means that the subject improvement is substantially ready for the
intended use for which it is constructed. Such completion may be evidenced
by the issuance of a Certificate of Occupancy or like document by
the City's building inspector(s).
k.
The Council shall have full discretion to accept, deny or revise
the application and shall not be subject to any time limitations to
make a determination.
l.
Notwithstanding the deadline for filing exemption applications reflected in Subsection j. herein, which deadline is statutorily mandated, this section is adopted with the intent of encouraging applicants to seek approvals of tax exemptions for eligible properties as early as possible, preferably prior to commencement of construction.
[Ord. No. 3059 § 12]
If the City Council grants the exemption for the project, the
Council shall adopt an Ordinance authorizing a tax agreement for a
particular project. The Council shall enter into a written agreement
with an applicant for the exemption 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:
a.
In the first full year after completion, no payment in lieu of taxes
otherwise due;
b.
In the second full year after completion, an amount not less than
twenty percent (20%) of taxes otherwise due;
c.
In the third full year after completion, an amount not less than
forty (40%) of taxes otherwise due;
d.
In the fourth full year after completion, an amount not less than
sixty percent (60%) of taxes otherwise due; and
e.
In the fifth full year after completion, an amount not less than
eighty percent (80%) of taxes otherwise due.
[Ord. No. 3059 § 13]
The City Clerk is authorized to forward a copy of all executed
agreements entered into pursuant to this section 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.
[Ord. No. 3059 § 14]
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 exemption, 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. The City's
Tax Collector 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, and no tax or payment in lieu
of tax shall be delinquent, the exemption shall continue and the agreement
shall remain in effect.
[Ord. No. 3059 § 15]
The City Council hereby determines that an additional improvement,
conversion or construction completed on a property already granted
a previous exemption pursuant to this section during the period in
which the previous exemption is in effect, shall qualify for an additional
exemption under the standards identified in this section. The additional
improvement, conversion or construction shall be considered as separate
for purposes of calculating the exemption, except that the assessed
value of any previous improvement, conversion or construction shall
be added to the assessed valuation as it was prior to that improvement,
conversion or construction for the purpose of determining the assessed
value of the property for which any additional exemption is to be
subtracted.
[Ord. No. 3059 § 16]
No exemption 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.
[Ord. No. 3059 § 17]
An applicant for tax exemption under this Ordinance shall agree,
as a condition to receiving the exemption, not to file a tax appeal
challenging the assessment granted under this section.
[Ord. No. 3059 § 18]
In the event that the City implements a revaluation or reassessment
during the exemption period for any property, the exemption shall
continue to apply but a valuation level consistent with the revaluation
or reassessment.
[Ord. No. 3059 § 19]
The granting of an exemption for a particular property shall
not prejudice the right of the City to appropriately examine and revise
the assessment during the five-year exemption period in the event
the base assessment is found to be improperly valued and assessed.
[Ord. No. 3059 § 20]
At the termination of an agreement for tax exemption authorized
pursuant to this section, the project or improvement 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 exemption from qualifying for and receiving
the full benefits of any other tax preference provided by law.
[Ord. No. 3059 § 21]
This section shall take effect for tax year 2014 upon final
passage, approval and publication as provided by law.
[Ord. No. 2980; amended 5-8-2019 by Ord. No. 2019-17]
It is the purpose of this section to implement the provisions
of P.L. 2003, c. 114, as amended by P.L. 2018, c. 49, which authorizes
the governing body of a municipality to adopt an ordinance imposing
a tax at a uniform percentage rate not to exceed 3% on charges of
rent for every occupancy of a room or rooms in a hotel or transient
accommodation subject to taxation pursuant to Subsection (d) of N.J.S.A.
54:32B-3, which shall be in addition to any other tax or fee imposed
pursuant to statute or local ordinance or resolution by any governmental
entity upon the occupancy of a hotel room or transient accommodation.
As used in this section:
The City of Asbury Park, in the County of Monmouth and State
of New Jersey.
Every occupant of a room or rooms in a hotel or transient
accommodation.
The Director of the Division of Taxation in the Department
of the Treasury for the State of New Jersey.
Establishments as defined in N.J.A.C. 18:24-3.4, as amended
from time to time, but shall not include a "transient accommodation"
as defined herein.
The use or possession or the right to the use or possession,
of any room in a hotel or transient accommodation.
A person or persons who, for a consideration, uses, possesses,
or has the right to use or possess, any room in a hotel or transient
accommodation under any lease, concession, permit, right of access,
license to use or other agreement, or otherwise.
Every operator of a hotel or transient accommodation.
Any person purchasing or hiring property or services from
another person, the receipts from which are taxable.
A house, condominium, or other residential dwelling unit
in a building or structure or part of a building or structure that
is designed, constructed, leased, rented, let or hired out, or otherwise
made available for use as a residence.
Any room or rooms of any kind in any part or portion of a
hotel or transient accommodation, which is available for or let out
for any purpose other than a place of assembly.
A room, group of rooms, or other living or sleeping space for the lodging of occupants, including but not limited to residences or buildings used as residences. "Transient accommodation" does not include: a hotel or hotel room; a room, group of rooms or other living or sleeping space used as a place of assembly; a dormitory or other similar residential facility of an elementary or secondary school or a college or university; a hospital, nursing home, or other similar residential facility of a provider of services for the care, support and treatment of individuals that is licensed by the state; a campsite, cabin, lean-to, or other similar residential facility of a campground or an adult or youth camp; a furnished or unfurnished private residential property, including but not limited to condominiums, bungalows, single-family homes and similar living units, where no maid service, room service, linen changing service or other common hotel services are made available by the lessor and where the keys to the furnished or unfurnished private residential property, whether a physical key, access to a keyless locking mechanism, or other means of physical ingress to the furnished or unfurnished private residential property, are provided to the lessee at the location of an offsite real estate broker licensed by the New Jersey Real Estate Commission pursuant to N.J.S.A. 45:15-1 et seq.; or leases of real property with a term of at least 90 consecutive days. The term "transient accommodation" shall specifically include the short-term rental of a dwelling unit, or part thereof, within the City of Asbury Park pursuant to the provisions of § 13-1300 ("Short-term Rentals") of the City Code.
An online marketplace through which a person may offer transient
accommodations or hotel rooms to individuals. A "transient space marketplace"
allows transient accommodations or hotel rooms to be advertised or
listed through an online marketplace in exchange for consideration
or provides a means for a customer to arrange for the occupancy of
the transient accommodation or hotel room in exchange for consideration.
A "transient space marketplace" shall not include an online marketplace
operated by or on behalf of a hotel or hotel corporation that facilitates
customer occupancy solely for the hotel or hotel corporation's
owned or managed hotels and franchises.
Any person selling or hiring property or services to another
person upon the receipts from which a tax is imposed.
There is hereby established a hotel room occupancy and transient
accommodation tax in the City of Asbury Park which shall be fixed
at a uniform percentage rate of 3% on charges of rent for every occupancy
of a hotel room or transient accommodation in the City of Asbury Park
which is subject to taxation pursuant to N.J.S.A. 54:3B-3(d).
The hotel room occupancy and transient accommodation tax shall
be in addition to any other tax or fee imposed pursuant to statute
or local ordinance or resolution by any governmental entity upon the
occupancy of a hotel room or transient accommodation.
The hotel room occupancy and transient accommodation tax authorized
herein shall not be imposed on the rent for an occupancy if the purchaser,
user or customer is an entity exempt from the tax imposed on an occupancy
under the Sales and Use Tax Act pursuant to N.J.S.A. 54:32B-3(d).
In accordance with the requirements of P.L. 2003, c. 114, as
amended by P.L. 2018, c. 49:
a.
All taxes imposed by this section shall be paid by the purchaser.
b.
A vendor shall not assume or absorb any tax imposed by this section.
c.
A vendor shall not in any manner advertise or hold out to any person
or to the public in general, in any manner, directly or indirectly,
that the tax will be assumed or absorbed by the vendor, that the tax
will not be separately charged and stated to the customer or that
the tax will be refunded to the customer.
d.
Each assumption or absorption by a vendor of the tax shall be deemed
a separate offense, and each representation or advertisement by a
vendor for each day that the representation or advertisement continues
shall be deemed a separate offense.
a.
The tax imposed by this section shall be collected on behalf of the
City by the person collecting the rent from the hotel or transient
accommodation customer.
b.
Each person or transient space marketplace required to collect the
tax herein imposed shall be liable for the tax imposed, collected
or required to be collected hereunder. Any such person or transient
space marketplace shall have the same right in respect to collecting
the tax from a customer as if the tax were a part of the rent and
payable at the same time, provided that the Chief Financial Officer
of the City shall be joined as a party in any action or proceeding
brought to collect the tax.
c.
Notwithstanding any other provision of law or administrative action
to the contrary, transient space marketplaces shall be required to
collect and pay on behalf of persons engaged in the business of providing
transient accommodations or hotel rooms located in the City the tax
for transactions solely consummated through the transient space marketplace.
For not less than four years following the end of the calendar year
in which the transaction occurred, the transient space marketplace
shall maintain the following data for those transactions consummated
through the transient marketplace:
1.
The name of the person who provided the transient accommodation or
hotel room;
2.
The name of the customer who procured occupancy of the transient
accommodation or hotel room;
3.
The address, including any unit designation, of the transient accommodation
or hotel room;
4.
The dates and nightly rates for which the consumer procured occupancy
of the transient accommodation or hotel room;
5.
The municipal transient accommodation registration number and/or
short-term rental permit number;
6.
A statement as to whether such booking services will be provided
in connection with (i) short-term rental of the entirety of such unit;
(ii) short-term rental of part of such unit, but not the entirety
of such unit, and/or (iii) short-term rental of the entirety of such
unit, or part thereof, in which a non-short-term occupant will continue
to occupy such unit for the duration of such short-term rental;
7.
The individualized name or number of each such advertisement or listing
connected to such unit and the uniform resource locator (URL) for
each such listing or advertisement, where applicable; and
8.
Such other information as the Division of Taxation may by rule require.
The Division of Taxation may audit transient space marketplaces
as necessary to ensure data accuracy and enforce tax compliance.
d.
A person required to collect a tax imposed pursuant to the provisions
of this section shall, on or before the dates required pursuant to
N.J.S.A. 54:32B-17, forward to the Director of the Division of Taxation
in the Department of the Treasury the tax collected in the preceding
month and make and file a return for the preceding month with the
Director on any form and containing any information as the Director
shall prescribe as necessary to determine liability for the tax in
the preceding month during which the person was required to collect
the tax.
e.
The Director may permit or require returns to be made covering other
periods and upon any dates as the Director may specify. In addition,
the Director may require payments of tax liability at any intervals
and based upon any classifications as the Director may designate.
In prescribing any other periods to be covered by the return or intervals
or classifications for payment of tax liability, the Director may
take into account the dollar volume of tax involved as well as the
need for ensuring the prompt and orderly collection of the tax imposed.
f.
The Director may require amended returns to be filed within 20 days
after notice and to contain the information specified in the notice.
a.
Any unpaid taxes pursuant to this section shall be subject to interest
at the rate of 5% per annum.
b.
The State Treasurer shall annually provide to the City written notification
of nonpayment of taxes required to be paid under this section. Said
written notification shall also authorize the City to act as the collection
agent for the outstanding balance of taxes due and owing to it in
place of the State Treasurer.
c.
In the event that the tax authorized and imposed under this section
is not paid as and when due, the unpaid balance, and any interest
accruing thereon, shall be a lien on the parcel of real property comprising
the hotel or transient accommodation 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 such 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 on the parcel for unpaid property taxes due and owing in the
same year.
d.
The City shall file in the office of its 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 hotel or transient accommodation. The lien shall be
enforced as a municipal lien in the same manner as all other municipal
liens are enforced.
The City shall annually provide to the State Treasurer, not
later than January 1 of each year, a list of the names and addresses
of all of the hotels located in the City. The City shall also provide
to the State Treasurer the name and address of any hotel that commences
operation after January 1 of any year.
