[Ord. No. 96-7, § I; Ord. No. 2010-7]
The following words and terms, when used in this chapter, shall
have the following meanings unless the context clearly indicates otherwise:
Shall mean 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 chapter.
Shall mean a portion or all of the Borough 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), by the Resolution adopted November 13,
1995 pursuant to N.J.S.A. 40A: 12A-14, or by subsequent resolutions.
Shall mean the officer of the Borough of Flemington charged
with the duty of assessing real property for the purpose of general
taxation.
Shall mean 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 borough, assist in the economic
development of the borough, maintain or increase the tax base of the
Borough and maintain or diversify and expand commerce within the Borough.
It shall not include any structure or part thereof used or to be used
by any business relocated from another qualifying Borough.
Shall mean substantially ready for the intended use for which
a building or structure is constructed, improved or converted.
Shall mean a property created or recorded as a condominium
pursuant to the 'Condominium Act,' P.L.1969, c. 257 (C.
46:8B-1 et seq.).
Shall mean the 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 (30%) percent, but shall not mean the conversion
of an existing building or structure to another use.
Shall mean 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.
Shall mean 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.
Shall mean, 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.
Shall mean a building or a 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.
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
this chapter.
Shall mean 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.).
Shall mean 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 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 (30%) percent. 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 ordinance.
Shall mean 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 rehabilitation, improvement or construction the "general common
elements" and "common elements" of a condominium, a cooperative, or
a horizontal property regime.
[Ord. No. 96-7, § I; Ord. No. 5-2000, § 1; Ord. No. 2005-20, § 1; Ord. No. 2010-7; Ord. No.
2013-17]
a.
There is hereby adopted and provided in the Borough of Flemington a five-year tax exemption program pursuant to N.J.S.A. 40A:21-1, et seq., as amended. This program shall apply to dwellings in areas in need of rehabilitation in the Borough and provide for the exemption from real property taxation of the aggregate first twenty-five thousand ($25,000.00) dollars in Assessor's full and true value of improvements for each dwelling unit primarily and directly affected by an improvement in any dwelling as defined in this chapter more than twenty (20) years old, as not increasing the value of such property for a period of five (5) years, notwithstanding that value of the dwelling to which such improvements are made is increased thereby. Provided, however, that during the exemption period, the assessment on said dwelling shall not be less than the assessment thereon existing immediately prior to such improvements, unless there is damage to a dwelling through action of the elements sufficient to warrant a reduction. Provided further, however, that the aggregate amount for any claims for any dwelling unit shall not be in excess of the maximum sum of twenty-five thousand ($25,000.00) dollars. Notwithstanding Section 27-4, the twenty-five thousand ($25,000.00) dollar exemption shall remain in full force and effect for the full twenty-five thousand ($25,000.00) dollar amount for the entire five-year period.
b.
The program shall also include exemptions for a portion of the assessed
valuation of construction of new dwellings or of conversions of other
buildings and structures, including underutilized public buildings
to dwelling use, or both. In determining the value of real property
covered by such an exemption, the Borough shall regard thirty (30%)
percent 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 five (5) years, notwithstanding that the
value of the property upon which the construction or conversion occurs
is increased thereby.
c.
This program shall also include an exemption for improvements to
commercial or industrial structures, in areas in need of rehabilitation
on an individual basis after review, evaluation and approval by the
Mayor and Council. In the case of approved exemptions for improvements
to commercial or industrial structures, the Assessor shall regard
the full and true value of 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. However, during this 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 an
exemption.
d.
The program shall also provide for an exemption for improvements
to multiple dwellings, or of conversions of other buildings and structures,
including underutilized public buildings, to multiple dwelling use,
or both in areas in need of rehabilitation, upon approval by the Mayor
and Council after review and evaluation on an individual basis. It
shall be required that, in determining the value of real property,
the Borough shall regard up to the Assessor's full and true value
of the improvements or conversion alterations 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 or conversion
alterations 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 conversion
alterations, unless there is damage to the multiple dwelling through
action of the elements sufficient to warrant a reduction.
[Ord. No. 96-7, § I; Ord. No. 2010-7; Ord. No.
2013-17]
Applicants for tax exemptions for improvements to commercial
or industrial structures or to multiple dwellings, or conversion of
other buildings to multiple dwelling use, shall provide the municipal
governing body with a completed application setting forth the following:
a.
A general description of the 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 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 exemption is granted;
e.
Estimates of the cost of completing such project, which shall include,
at a minimum, all items required to accompany an application for a
construction permit under the Uniform Construction Code, pursuant
to Paragraph 4 of N.J.A.C. 5:23-2;
f.
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
exemption, 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 exemption;
g.
A description of any lease agreements between the applicant and proposed
users of the project, and a history and description of the users'
businesses; and
h.
Such other pertinent information as the governing body may require, or as may be required by the assessor pursuant to Section 27-9.
i.
Such exemptions shall be reviewed, evaluated and approved on an individual
basis by the governing body.
[Ord. No. 96-7, § 1; Ord. No. 2010-7; Ord. No.
2013-17]
There is hereby adopted a tax exemption and abatement program pursuant to N.J.S.A. 40A:21-1, et seq., as amended, for construction of commercial or industrial structures and/or multiple dwellings. Such exemptions and abatements shall only be granted after the filing of an application containing all of the information below and the approval of such application by the governing body. All applications pursuant to this subsection 27-3.2 shall be subject to an agreement to be approved and executed by the governing body. All tax agreements shall be applied for and granted on an individual or project basis, after review, evaluation and approval of each application by the governing body.
Applicants for tax exemption and abatement for new construction
of commercial or industrial structures or multiple dwellings shall
provide the municipal governing body with a completed 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 any
dwellings' units to be restricted for occupancy of low or moderate
income housing; and
[Ord. No. 96-7, § 1; Ord. No. 2010-7; Ord. No.
2013-17]
a.
During the term of the exemption and abatement granted pursuant to a tax agreement entered under subsection 27-3.2 hereof, the applicant shall pay the municipality 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, twenty (20%) percent of
taxes otherwise due;
3.
In the third full year after completion, forty (40%) percent of taxes
otherwise due;
4.
In the fourth full year after completion, sixty (60%) percent of
taxes otherwise due;
5.
In the fifth full year after completion, eighty (80%) percent of
taxes otherwise due.
b.
All tax exemptions and abatements approved by the Borough of Flemington
shall be in effect for no more than the five (5) full tax years next
following the date of completion of the project. No tax exemption
or abatement shall be granted to become effective after for the tax
year 2021, unless this chapter is readopted by the governing body.
c.
All projects subject to tax exemption and/or abatement as provided
herein shall be subject to all applicable Federal, State and local
laws and regulations on pollution control, worker safety, discrimination
in employment, housing provision, zoning, planning and building code
requirements.
d.
That percentage which the payment in lieu of taxes for a property
bears to the property tax which would have been paid had an exemption
and/or abatement not been granted for the property shall be applied
to the valuation of the property to determine the reduced valuation
of the property to be included in the valuation of the Borough for
determining equalization for County tax apportionment and school aid
during the term of the tax agreements covering the properties, and
at the termination of an agreement for a property the reduced valuation
procedure required under this section shall no longer apply.
e.
Within thirty (30) days after the execution of a tax agreement, the
Borough of Flemington shall forward a copy of the agreement to the
Director of the Division of Local Government Services in the Department
of Community Affairs.
[Ord. No. 96-7, § 1; Ord. No. 2010-7]
a.
If during any tax year prior to the termination of the tax agreement,
the property owner ceases to operate or disposes of the property,
or fails to meet the conditions for qualifying, then the tax which
would have otherwise been payable for each tax year shall become due
and payable from the property owner as if no exemption and abatement
had been granted. The governing body of the Borough of Flemington
shall notify the property owner and Tax Collector forthwith and the
Tax Collector shall within fifteen (15) days thereof notify the owner
of the property of the amount of taxes due.
However, with respect to the disposal of the property, where
it is determined that the new owner of the property will continue
to use the property pursuant to the conditions which qualified the
property, no tax shall be due, the exemption and the abatement shall
continue, and the agreement shall remain in effect.
b.
At the termination of a tax agreement, a project shall be subject
to all applicable real property taxes as provided by State law and
regulation and local ordinance; but nothing herein shall prohibit
a project, at the termination of an agreement, from qualifying for
and receiving the full benefits of any other tax preferences provided
by law.
[Ord. No. 96-7, § I; Ord. No. 2010-7]
The Assessor shall determine, on October 1 of the year following
the date of the completion of an improvement, conversion or construction,
the true taxable value thereof. Except for projects subject to tax
agreement, pursuant to sections 9 through 12 of P.L. 1991, c. 441,
the amount of tax to be paid for the first full tax year following
completion shall be based on the assessed valuation of the property
for the previous year, minus the amount of the abatement, if any,
allowed pursuant to this chapter, plus any portion of the assessed
valuation of the improvement, conversion or construction not allowed
as an exemption under this chapter. Subject to the provisions of this
chapter, the property shall continue to be treated in the appropriate
manner for each of the five full tax years subsequent to the original
determination by the Assessor.
[Ord. No. 96-7, § I; Ord. No. 2010-7]
Any additional improvement, conversion or construction, completed
on a property granted a previous exemption or abatement pursuant to
this chapter during the period in which such previous exemption or
abatement is in effect, shall be qualified for an exemption, or exemption
and abatement, just as if such property had not received a previous
exemption or abatement. In such case, the additional improvement,
conversion or construction shall be considered as separate for the
purposes of calculating exemptions and abatements pursuant to this
chapter, 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 alteration or construction
for the purpose of determining the assessed valuation of the property
from which any additional abatement is to be subtracted. Unless provided
by ordinance, no additional exemption or abatement shall be allowed
unless a new application is submitted to the governing body and a
new agreement has been executed.
[Ord. No. 96-7, § I; Ord. No. 2010-7]
No exemption or abatement shall be granted, or tax agreement
entered into, pursuant to this chapter with respect to any property
for which property taxes are delinquent or remain unpaid, or for which
penalties for nonpayment of taxes are due.
[Ord. No. 96-7, § I; Ord. No. 2010-7]
No exemption or abatement shall be granted pursuant to this
chapter except upon written application therefor filed with and approved
by the Assessor of the Borough of Flemington. 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 governing body of the Borough of Flemington, and shall be filed
with the Assessor within thirty (30) days, including Saturdays, Sundays
and holidays, following the completion of the improvement, conversion
alteration or construction. Every application for exemption, or exemption
and abatement, within the Borough of Flemington 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 provision
of this chapter or the tax agreement, provided that the improvement,
conversion, alteration or construction for which the application is
made qualifies as an improvement, a conversion, alteration or construction
pursuant to the provisions of this chapter. Such approval of an abatement
is subject to the approval of the Mayor and Council where required
by this chapter, and also subject to approval by them of a tax agreement
where required. The granting of an exemption, or exemption and abatement,
or tax agreement 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.
[Ord. No. 96-7, § 1; Ord. No. 2010-7]
The exemption and abatement of real property taxes provided
by the Borough of Flemington pursuant to this chapter shall apply
to property taxes levied for municipal purposes, school purposes,
County government purposes and for the purposes of funding any other
property tax exemptions or abatements.
[Ord. No. 96-7, § I; Ord. No. 2010-7]
The Tax Collector or other responsible officer designated by
the Mayor and Council shall include a notice in the mailing of annual
property tax bills to each owner of a dwelling located in an area
in which exemptions, or exemptions and abatements; may be allowed
pursuant to the chapter during the first year following adoption of
the chapter.
[Ord. No. 96-7, § I; Ord. No. 2010-7]
The Mayor and Council 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 and to the Director of the
Division of Taxation in the Department of the Treasury the total amount
of real property taxes exempted and the total amount abated within
the municipality in the current tax year for each of the following:
a.
Improvements of dwellings;
b.
Construction of dwellings;
c.
Improvements and conversions of multiple dwellings;
d.
Improvements of commercial or industrial structures;
e.
Construction of multiple dwellings under tax agreements; and
f.
Construction of commercial or industrial structures under tax agreements.
In the case of paragraphs e and f above, the report shall state
instead the total amount of payments made in lieu of taxes according
to each formula utilized by the municipality, 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.
