[Adopted MC 2017-04, February 13, 2017;[1] amended in its entirety 7-9-2018 by Ord. No. MC 2018-19]
[1]
Editor's Note: Prior ordinance history: Ordinance No. MC 1978-18.
The recitals set forth above are incorporated herein as if set forth at length.[1]
[1]
Editor's Note: The recitals are included in Ord. No. MC 2018-19, on file in the City offices.
All terms utilized in this article not specifically defined herein shall conform to the meanings set forth in the Exemption Law.[1] For ease of reference, the definitions set forth in the Exemption Law as of the date of the adoption of this article are attached hereto as Exhibit A.[2] However, if the definitions set forth in the Exemption Law shall be subsequently amended, then the Exemption Law, and not Exhibit A, shall control.
[1]
Editor's Note: See the Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1 et seq.
[2]
Editor's Note: Exhibit A is on file in the City offices.
The City hereby determines to utilize the authority granted under Article VIII, Section I, Paragraph 6, of the New Jersey Constitution to establish the eligibility of certain multiple dwellings, commercial structures and industrial structures for exemptions, as provided in this article and as permitted by the Exemption Law, throughout the rehabilitation area.
The City hereby determines to provide for the exemption from taxation of certain improvements and certain new construction occurring within the rehabilitation area. To the extent that a property owner shall apply to the City's Tax Assessor (the "Tax Assessor") within the time period prescribed by the New Jersey Department of the Treasury in accordance with the Exemption Law, which currently requires submission within thirty (30) calendar days following completion of the improvements or construction for which the exemption is sought, and shall provide documentation to the Tax Assessor, in a form and manner acceptable to the Tax Assessor and consistent with the Exemption Law, of compliance with this section, such property owner shall be entitled to the relevant exemption enumerated herein without any need for action by the City Council. The application fee for exemptions implemented by the Tax Assessor shall be $1,000 per application.
(a) 
Residential — multiple dwellings - improvements.
(1) 
The City hereby determines to provide for an exemption of 100% of the Tax Assessor's full and true value of improvements to multiple dwellings for a period of five years following the construction of such improvements. The term "multiple dwelling" shall have that meaning ascribed to it by the Exemption Law. The definition of "multiple dwelling" set forth in the Exemption Law as of the date of adoption of this article is set forth at Exhibit A, attached hereto.[1]
[1]
Editor's Note: Exhibit A is on file in the City offices.
(2) 
This exemption is to be granted notwithstanding that the value of the property upon which the construction occurs is increased thereby. During the exemption period, the assessment on any property pursuant to this § 6:4-4(a) shall not be less than the assessment thereon existing immediately prior to the improvements, except if there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction.
(b) 
Residential — multiple dwellings - conversion.
(1) 
The City hereby determines to provide for an exemption of 100% of the Tax Assessor's full and true value of conversion alterations that result in multiple dwellings for a period of five years following the construction of such conversion alterations. The term "multiple dwelling" shall have that meaning ascribed to it by the Exemption Law. The definition of "multiple dwelling" set forth in the Exemption Law as of the date of adoption of this article is set forth at Exhibit A, attached hereto.[2]
[2]
Editor's Note: Exhibit A is on file in the City offices.
(2) 
This exemption is to be granted notwithstanding that the value of the property upon which the construction occurs is increased thereby. During the exemption period, the assessment on any property pursuant to this § 6:4-4(b) shall not be less than the assessment thereon existing immediately prior to the improvements, except if there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction.
(c) 
Commercial - improvements. The City hereby determines to provide for the exemption from taxation of certain improvements made to commercial structures. The City hereby determines to provide for an exemption of 100% of the Tax Assessor's full and true value of improvements to commercial structures for a period of five years following the construction of such improvements. This exemption is to be granted notwithstanding that the value of the property upon which the construction of the improvement occurs is increased thereby. During the exemption period, the assessment on any property pursuant to this § 6:4-4(c) shall not be less than the assessment thereon existing immediately prior to the improvements, except if there is damage to the structure through action of the elements sufficient to warrant a reduction.
(d) 
Industrial - improvements. The City hereby determines to provide for the exemption from taxation of certain improvements made to industrial structures. The City hereby determines to provide for an exemption of 100% of the Tax Assessor's full and true value of improvements to industrial structures for a period of five years following the construction of such improvements. This exemption is to be granted notwithstanding that the value of the property upon which the construction of the improvement occurs is increased thereby. During the exemption period, the assessment on any property pursuant to this § 6:4-4(d) shall not be less than the assessment thereon existing immediately prior to the improvements, except if there is damage to the structure through action of the elements sufficient to warrant a reduction.
The application fee for exemptions requiring City Council approval shall be $5,000 per application.
(a) 
Exemptions for which application is required. The City hereby determines that any property owner seeking exemption from taxation with respect to the construction of multiple dwellings, commercial structures or industrial structures shall make application to the City Council in accordance with this section and N.J.S.A. 40A:21-9.
(b) 
Contents of Application. Applicants for an exemption under this section shall provide the City Council and the Tax Assessor with the information required by N.J.S.A. 40A:21-9 and any such other pertinent information as the City may require, including, but not limited to, that information set forth at § 6:4-6(b) of this article.
(c) 
Review and Recommendation by Tax Assessor. Within 60 days of receipt of a complete application pursuant to this section, the Tax Assessor shall review the information provided and shall provide written recommendations to the City Council with respect to same.
(d) 
Action by City Council. After receipt of the Tax Assessor's recommendations, the City Council shall determine whether to enter into a tax agreement in accordance with the terms of N.J.S.A. 40A:21-9.
Applicants for an exemption under this article shall provide the Tax Assessor with the following information:
(a) 
Improvements and/or conversion alterations:
(1) 
New Jersey Division of Taxation Form E/A-1 (or any successor form promulgated by the Division);
(2) 
A general description of the improvements or construction alterations for which exemption is sought;
(3) 
Plans, drawings and other documents as may be required by the City to demonstrate the structure and design of the improvements or construction alterations;
(4) 
The date of completion of the improvements or construction alterations;
(5) 
A certificate of occupancy granted with respect to the improvements or conversion alterations, or an application for the same, with the granting of a certificate of occupancy required for approval of the exemption; and
(6) 
Such other pertinent information as the City may require.
(b) 
Application for tax agreement:
(1) 
A general description of the project for which exemption is sought, and an estimated schedule of completion for the project;
(2) 
A legal description of all real estate necessary for the project;
(3) 
Plans, drawings and other documents as may be required by the City Council 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 years of completion of the project;
(5) 
A statement of the reasons for seeking an exemption on the project, and a description of the benefits to be realized by the City and the property owner if an exemption is granted;
(6) 
Estimates of the cost of completing the project;
(7) 
A statement showing:
(A) 
The real property taxes currently being assessed at the project site;
(B) 
Estimated tax payments that would be made annually by the property owner with respect to the project during the period of the exemption; and
(C) 
Estimated tax payments that would be made by the property owner with respect to the project during the first full year following the termination of the exemption;
(8) 
A description of any lease agreements between the property owners and proposed users of the project, and a history and description of the users' businesses;
(9) 
A certification by the property owner listing:
(A) 
All properties within the City owned by the property owner or in which the property owner has an interest, and
(B) 
All agreements with the City to which the property owner is a party; and
(10) 
Such other pertinent information as the City may require.
The City hereby determines that an additional improvement or construction completed on a property already granted a previous exemption pursuant to this article, during the period in which the previous exemption is in effect, shall be eligible to qualify for an additional exemption under the standards identified in this section. The additional improvement or construction shall be considered as separate for purposes of calculating the exemption, except that the assessed value of any previous improvement or construction shall be added to the assessed valuation as it was prior to that improvement or construction for the purpose of determining the assessed value of the property for which any additional exemption is to be subtracted.
No exemption 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.
In the event that the City implements a revaluation or reassessment during the exemption period for any property, any exemptions granted hereunder shall continue to apply but at a valuation level consistent with the revaluation or reassessment.
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.
Upon final passage and publication as provided by law, this article shall take effect on [_____], 2016, and shall authorize the City to grant exemptions up to a five-year period. This article shall lapse, unless readopted, on [_____], 2026, and no exemptions shall be granted after [_____], 2026, without such readoption.