For the purposes of taxation, an exemption may be granted to
the Assessor's full and true value of improvements to commercial and
industrial structures. The exemption shall be granted for a five-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 increases 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 the action of elements
sufficient to warrant a reduction.
A.
The Borough Council of the Borough of Oaklyn may enter into a written agreement with an applicant for the exemption and abatement of local property taxes as referenced in § 117-6 of this article. The agreement shall provide that the applicant shall pay the municipality, in lieu of full property taxes, an amount equal to a percentage of taxes otherwise due according to the tax phase-in basis as authorized and defined by N.J.S.A. 40A:21-10c(3), in accord with the following schedule:
(1)
In the first full year after completion, no payment in lieu of taxes
otherwise due on the additional improvement, conversion or construction;
(2)
In the second tax year, an amount not less than 20% of taxes otherwise
due on the additional improvement, conversion or construction;
(3)
In the third tax year, an amount not less than 40% of taxes otherwise
due on the additional improvement, conversion or construction;
(4)
In the fourth tax year, an amount not less than 60% of taxes otherwise
due on the additional improvement, conversion or construction;
(5)
In the fifth tax year, an amount not less than 80% of taxes otherwise
due on the additional improvement, conversion or construction.
B.
The Borough Clerk of the Borough of Oaklyn, pursuant to N.J.S.A.
40A:21-11, shall forward a copy of all tax agreements entered into
pursuant to this article to the Director of the Division of Local
Government Services in the Department of Community Affairs within
30 days of the date of its execution.
C.
In the event that the 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 the 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 Oaklyn shall notify
the property owner, within 15 days of the date of disqualification,
of the amount of taxes due. In the event that 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.
A.
Applicants for tax exemptions and abatements for new construction
and/or improvements to commercial and industrial structures shall
provide the Borough Council of the Borough of Oaklyn with an application
setting forth the following information:
(1)
A general description of the project for which the exemption or abatement
is sought;
(2)
A legal description of the real estate necessary for the project;
(3)
Plans, drawings and other documents, as they may be required by the
Borough Council of the Borough of Oaklyn to demonstrate the structure
and design of the project;
(4)
A description of the number, classes and types of employees to be
employed at the project site within two years of the completion of
the project;
(5)
A statement of the reasons for seeking the tax exemption and abatement
on the project and a description of the benefits to be realized by
the applicant if the tax exemption and abatement is granted;
(6)
Estimates of the cost of completing such project;
(7)
A statement showing:
(a)
The real property taxes currently being assessed at the project
site to the Borough of Oaklyn;
(b)
The estimated tax payments that would be made annually by the
applicant on the project to the Borough of Oaklyn during the period
of the agreement;
(c)
The estimated tax payments that would be made by the applicant
on the project to the Borough of Oaklyn during the first full year
following the termination of the agreement.
(8)
A description of any lease agreement between the applicant and any
proposed users of the project and a history and description of the
proposed user's business; and
(9)
Any such other pertinent information as may be required by the Borough
Council of the Borough of Oaklyn, to be determined on a case-by-case
basis.
B.
Every application submitted pursuant to this article 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 Oaklyn, as
a condition for its approval, within 30 days following the completion
of the improvement, conversion or construction.
C.
No application may be made to the Borough Council of the Borough
of Oaklyn for an exemption or abatement of local property taxes pursuant
to this article for any property for which property taxes are delinquent
or remain unpaid or for which penalties for nonpayment of taxes are
due. As a condition to the granting of an exemption or abatement,
a property owner shall be required to waive the filing of any tax
appeal for the subject property for the life of the exemption\abatement.
Additional improvements, conversions or construction completed
on a property already granted a previous exemption or abatement pursuant
to this article during the period in which the previous exemption
or abatement is in effect shall qualify for an additional exemption
or abatement. The additional improvements, conversions or construction
shall be considered as separate for the purposes of calculating the
exemption or abatement, 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 abatement is to be subtracted.
At the termination of an agreement for tax exemption or abatement
authorized pursuant to this article, the project shall be subject
to all applicable real estate taxes, as provided by state and local
laws and regulations, provided that nothing herein shall be deemed
to prohibit the project or improvement, at the termination of an agreement
authorized pursuant to this article, from qualifying for and receiving
the full benefits of any tax preference as provided by law.
