[Adopted 12-3-2019 by Ord. No. 14.19]
The intention of this article is
to effectuate and accomplish the purposes authorized by N.J.S.A. 40A:21-1
et seq., which permits municipalities to grant for periods of five
years exemptions and/or abatements, or both, from taxation in areas
of the municipality in need of rehabilitation. The intended purpose
of this article is to promote the improvement, rehabilitation and
or construction of residential dwellings, multiple dwellings, commercial
structures, industrial structures, and mixed-use structures within
designated rehabilitation areas of the Borough of Paulsboro, County
of Gloucester, State of New Jersey.
The Borough of Paulsboro hereby authorizes the utilization of tax exemptions in accordance with Article VIII, Section I, Paragraph 6, of the New Jersey Constitution and establishes the eligibility of single-family residential dwellings, multiple dwellings, commercial and industrial structures, and mixed-use structures for five years to the maximum degree permitted by N.J.S.A. 40A:21-1 et seq. in any area designated as any eligible area as defined in §
72-15.
A. The definitions contained in N.J.S.A. 40A:21-3
are incorporated herein by reference as if set forth at length. As
used in this article, those words shall have the meanings as so defined
unless a different meaning is clearly expressed.
B. Additional terms. As used in this article,
the following definitions shall apply:
AREA IN NEED OF REHABILITATION
The area(s) within the Borough of Paulsboro which have been
determined to be an area in need of rehabilitation or redevelopment
pursuant to the Local Redevelopment and Housing Law (N.J.S.A. 40A:12A-1
et seq.), which have been determined to be a "blighted area" pursuant
to the Blighted Areas Act (N.J.S.A. 40:55-21.1 et seq.), or which
have been determined to be in need of rehabilitation pursuant to N.J.S.A.
54:4-3.72 et seq. or N.J.S.A. 54:4-3.121 et seq.
ASSESSOR
The officer of the taxing district charged with the duty
of assessing real property for the purpose of general taxation.
EXEMPTION AND ABATEMENT OFFICER
The individual appointed by the Borough Council pursuant
to this article to administer the five-year exemption and abatement
programs provided by this chapter except where otherwise noted. The
phrase "E&A Officer" shall mean Exemption and Abatement Officer.
MIXED-USE STRUCTURE
A structure with two or more different uses, such as residential,
commercial, or industrial.
MUNICIPAL CHARGES
Property taxes, assessments, water or sewer charges and any
other charge for which a lien may be created, together with interest
and penalties thereon, including all advertising fees and costs of
sale.
PROJECT
Any improvement or construction undertaken by a single entity
which may include the construction, reconstruction, structural alteration,
relocation or enlargement of any building or other structure.
THE ACT
The Five-Year Exemption and Abatement Law, N.J.S.A. 40A:21-1
et seq. enacted into law on or about January 18, 1992, as amended
and supplemented.
C. Where consistent with the context used
in this article, words importing the singular shall include the plural,
words importing the plural shall include the singular, and words importing
one gender shall include all other genders.
A. The Mayor and Borough Council may enter
into agreements with developers and/or owners of property that are
in areas in need of redevelopment or rehabilitation within the Borough
of Paulsboro, as determined by the Mayor and Borough Council in accordance
with N.J.S.A. 40A:12A-1 et seq. providing tax exemptions for the construction
and rehabilitation of dwellings, multiple dwellings, industrial structures,
commercial structures, and mixed-use structures within the Borough
of Paulsboro pursuant to the Act and the requirements of this article.
B. Except as otherwise provided in §§
72-20 and
72-23 herein, the Assessor may approve tax exemptions and/or abatements for the benefit of developers and/or owners of property, for any project with an estimate of costs less than $500,000, subject to the Act and the requirements of this article. Tax exemptions for any project with an estimate of costs exceeding $500,000 shall be subject to the review and approval of the Mayor and Borough Council pursuant to the Act and the requirements of this article.
A. Improvements to dwellings shall be eligible
for a tax exemption and/or abatement for a period of five years in
accordance with the following:
(1) Only improvements made to dwellings more
than 20 years old are eligible for tax exemption for a period of five
years. For purposes of eligibility under this section, a dwelling
will be considered less than 20 years old if in the last 20 years,
the dwelling has been demolished in its entirety or where less than
60% of the original square footage of the dwelling remains.
(2) Upon approval, the Assessor in determining
value shall regard the first $25,000 of the 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, notwithstanding
that the value of the property to which the improvements are made
is increased thereby. The five-year exemption period shall commence
on the first day of the month following grant of the exemption. If
the five-year period expires leaving a partial year in the tax year,
the Assessor shall complete an added assessment as appropriate.
(3) An abatement for a dwelling may be granted
with respect to the property for a total of up to five years, but
the annual amount of the abatement granted to any single property
may not exceed 30% of the annual amount of the exemption granted under
this section. The five-year abatement period shall commence in the
first full year following the tax year in which the improvements are
completed.
(4) During the exemption period, the assessment
on the property shall not be less than the assessment thereon existing
immediately prior to the improvements, unless an abatement has been
granted pursuant to this section or there is damage to the dwelling
through action of the elements sufficient to warrant a reduction.
A. Improvements to multiple dwellings shall
be eligible for a tax exemption and/or abatement for a period of five
years in accordance with the following:
(1) Upon approval, in determining the value
of real property, the municipality shall regard up to the Assessor's
full and true value of the improvements as not increasing the value
of the property for a period of five years, notwithstanding the value
of the property to which the improvements are made is increased thereby.
(2) An abatement for a multiple dwelling may
be granted with respect to the property for a total of up to five
years, but the annual amount of the abatement shall not exceed 30%
of the total cost of the improvement, and the total amount of abatements
granted to any single property shall not exceed the total cost of
the improvement.
(3) The five-year exemption period shall not
commence until the first full year following the tax year in which
the improvements are completed.
(4) During the exemption period, the assessment
on the property shall not be less than the assessment thereon existing
immediately prior to the improvements, unless an abatement has been
granted pursuant to this section or there is damage to the dwelling
through action of the elements sufficient to warrant a reduction.
A. Improvements to commercial structures shall
be eligible for tax exemption for a period of five years in accordance
with the following:
(1) Upon approval, in determining value, the
Assessor shall regard up to the Assessor's full and true value of
the improvements as not increasing the value of the property for a
period of five years.
(2) This exemption is to be granted 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 improvements, unless there is damage to the
structure through action of the elements sufficient to warrant a reduction.
(3) The five-year exemption period shall not
commence until the first full year following the tax year in which
the improvement is completed.
A. Improvements to industrial structures shall
be eligible for tax exemption for a period of five years in accordance
with the following:
(1) Upon approval, in determining value, the
Assessor shall regard up to the Assessor's full and true value of
the improvements as not increasing the value of the property for a
period of five years.
(2) This exemption is to be granted 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 improvements, unless there is damage to the
structure through action of the elements sufficient to warrant a reduction.
(3) The five-year exemption period shall not
commence until the first full year following the tax year in which
the improvement is completed.
A. New dwellings and other buildings and structures
converted to dwelling use, including unutilized public buildings,
shall be eligible for a tax exemption and/or abatement for a period
of five years in accordance with the following:
(1) The newly constructed or converted building
or structure shall be occupied by the owner thereof.
(2) An abatement for a dwelling may be granted
with respect to the property for a total of up to five years, but
the annual amount of the abatement granted to any single property
may not exceed 30% of the annual amount of the exemption granted under
this section. The five-year abatement period shall commence in the
first full year following the tax year in which the improvements are
completed.
(3) Upon approval, in determining the value
of real property, the municipality shall regard a percentage, not
to exceed 30%, 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 a total up to five years, notwithstanding
that the value of the property upon which the construction or conversion
occurs is increased thereby. The five-year exemption period shall
commence on the first day of the month following grant of the exemption.
If the five-year period expires leaving a partial year in the tax
year, the Assessor shall complete an added assessment as appropriate.
(4) An abatement for new dwellings and other
buildings and structures converted to dwelling use may be granted
with respect to the property for a total of up to five years, but
the annual amount of the abatement granted to any single property
may not exceed 30% of the total cost of the construction or conversion
alteration, and the total amount of abatements granted to any single
property shall not exceed the total cost of the construction or conversion
alteration. The five-year abatement period shall commence in the first
full year following the tax year in which the improvements are completed.
The five-year exemption period shall commence on the first day of
the month following grant of the exemption. If the five-year period
expires leaving a partial year in the tax year, the Assessor shall
complete an added assessment as appropriate.
A. New construction of commercial structures
shall be eligible for tax exemption for a period of five years. This
exemption may only be approved by ordinance of the Mayor and Borough
Council on a project-by-project basis.
B. Pursuant to §
72-28 of this article, applicants for tax exemption shall provide the E&A Officer, on behalf of the Mayor and Borough Council, with an application setting forth all the following information:
(1) A general description of the project for
which exemption 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 Mayor and Borough Council or Assessor, as applicable,
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
tax exemption on the project and a description of the benefits to
be realized by the applicant if a tax agreement is granted.
(6) A good faith estimate of the cost of completing
such project, together with the expected method or plan of financing
the improvements.
(7) A construction time schedule and projected
completion schedule.
(8) A statement showing the real property taxes
currently being assessed at the project site, the estimated tax payments
that would be made annually by the applicant on the project during
the period of the agreement, and the estimated tax payments that would
be made by the applicant on the project during the first full year
following the termination or expiration of the tax agreement.
(9) A description of any lease agreement between
the applicant and proposed users of the project and a history and
description of the users' businesses.
(10)
A disclosure statement of the interests
of all parties, including subsidiary companies, in the project.
(11)
The owner's certification that the
improvement as proposed meets the requirements of the redevelopment
plan or the Borough of Paulsboro's Zoning Ordinance.
(12)
The signature of the owner and the
owner's certification as to the truth and accuracy of the contents
contained in the application.
(13)
Such other pertinent information
as the Mayor and Borough Council may require on a case-by-case basis.
C. The owner shall enter a written agreement
with the Borough of Paulsboro to pay a tax on the newly-constructed
commercial structures to be computed in accordance with the "tax phase-in
basis" formula set forth in N.J.S.A. 40A:21-10. The agreement shall
provide that the tax shall be billed and collected in the same manner
as any conventional taxes, and any arrearages shall accrue at the
rate of interest charged for delinquent real estate taxes.
D. The five-year exemption period shall not
commence until the first full year following the tax year in which
the construction of the commercial structures is completed.
E. The E&A Officer, on behalf of the Borough
Council, shall be responsible for the administration and enforcement
of the tax agreement in accordance with the following:
(1) In the event that 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 and/or abatement set forth in §
72-20 herein, including but not limited to compliance with the requirements of the redevelopment plan or the Borough of Paulsboro's Zoning Ordinance, 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.
(2) If 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 additional
tax shall be due, the exemption shall continue and the agreement shall
remain in effect.
(3) The E&A Officer, on behalf of the Borough
Council, shall notify the property owner, the Assessor and the Tax
Collector of the amount of taxes due within 15 days of the date of
disqualification.
F. Any tax agreement as authorized by this
section shall only be available wherein the use of the property is
permitted by the existing zoning standards of the Borough's Municipal
Code and not the result of a variance.
A. New construction of industrial structures
shall be eligible for tax exemption for a period of five years. This
exemption may only be approved by ordinance of the Mayor and Borough
Council on a project-by-project basis.
B. Applicants for tax exemption shall provide
the Mayor and Borough Council with an application setting forth all
the following information:
(1) A general description of the project for
which exemption 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 Mayor and Borough 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
tax exemption on the project and a description of the benefits to
be realized by the applicant if a tax agreement is granted.
(6) A good faith estimate of the cost of completing
such project, together with the expected method or plan of financing
the improvements.
(7) A construction time schedule and projected
completion schedule.
(8) A statement showing the real property taxes
currently being assessed at the project site, the estimated tax payments
that would be made annually by the applicant on the project during
the period of the agreement, and the estimated tax payments that would
be made by the applicant on the project during the first full year
following the termination or expiration of the tax agreement.
(9) A description of any lease agreement between
the applicant and proposed users of the project and a history and
description of the users' businesses.
(10)
A disclosure statement of the interests
of all parties, including subsidiary companies, in the project.
(11)
The owner's certification that the
improvement as proposed meets the requirements of the redevelopment
plan or the Borough of Paulsboro's Zoning Ordinance.
(12)
The signature of the owner and the
owner's certification as to the truth and accuracy of the contents
contained in the application.
(13)
Such other pertinent information
as the Mayor and Borough Council may require on a case-by-case basis.
C. The owner shall enter a written agreement
with the Borough of Paulsboro to pay a tax on the newly-constructed
industrial structures to be computed in accordance with the "tax phase-in
basis" formula set forth in N.J.S.A. 40A:21-10. The agreement shall
provide that the tax shall be billed and collected in the same manner
as any conventional taxes, and any arrearages shall accrue at the
rate of interest charged for delinquent real estate taxes.
D. The five-year exemption period shall not
commence until the first full year following the tax year in which
the construction of the industrial structures is completed.
E. The E&A Officer, on behalf of the Mayor
and Borough Council, shall be responsible for the administration and
enforcement of the tax agreement in accordance with the following:
(1) In the event that 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 and/or
abatement set forth in this article, including but not limited to
compliance with the redevelopment plan or the Borough of Paulsboro's
Zoning Ordinance, 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.
(2) If 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 additional
tax shall be due, the exemption shall continue and the agreement shall
remain in effect.
(3) The E&A Officer, on behalf of the Mayor
and Borough Council, shall notify the property owner and the Assessor
of the amount of taxes due within 15 days of the date of disqualification.
F. Any tax agreement as authorized by this
section shall only be available wherein the use of the property is
permitted by the existing zoning standards of the Borough's Municipal
Code and not the result of a variance.
Construction of mixed use structures
are eligible for tax exemption in accordance with the requirements
set forth in this article for the various components of the mixed
use.
The Assessor shall determine, on
October 1 of the year following the date of the completion of any
improvement or construction the true taxable value thereof. The amount
of tax to be paid for the first full tax year following completion
of any improvement or construction for any portion thereof not subject
to an assessment or exemption shall be based on the valuation of the
property by the Assessor pursuant to this section and shall continue
in the appropriate manner for each of the five full tax years of the
exemption period.
All tax exemption agreements shall
provide that the property owner is subject to all applicable federal,
state and local laws and regulations, including but not limited to
laws and regulations governing pollution control, worker safety, discrimination
in employment, housing provisions, zoning, planning and building code
requirements.
The position of Exemption and Abatement
Officer ("E&A Officer") is hereby created for the purpose of administering
the Borough's five-year exemption and abatement programs under this
chapter. The Borough shall appoint the E&A Officer by resolution
of the Borough Council at its annual reorganization meeting for a
period of one year. The initial E&A Officer shall be appointed
by resolution of the Borough Council at its first scheduled meeting
following the effective date of this provision and shall serve until
the next annual reorganization meeting. The compensation for the E&A
Officer shall be set by ordinance.
A. Applicants for tax exemption shall submit
an application to the Assessor or E&A Officer, as applicable,
on a form prescribed by the Director of the Division of Taxation in
the Department of Treasury within 30 calendar days following the completion
of the improvement or new construction.
B. The E&A Officer shall forward a copy
of the completed application to the Mayor and Borough Council within
30 days of the receipt of same for all tax exemption requests requiring
Mayor and Borough Council approval. Following receipt of a completed
application as set forth above, the Mayor and Borough Council or the
Assessor, as applicable, shall review same to determine whether an
exemption and/or abatement shall be granted.
C. All tax exemptions and all tax agreements
shall be recorded and made a permanent part of the official tax records
of the Borough of Paulsboro, which records shall contain a notice
of termination date thereof.
D. Any tax exemption approved pursuant to
this article shall apply to the property taxes levied for Borough
of Paulsboro purposes, school purposes, county government purposes,
and for any other property tax purposes.
E. Every application for exemption shall be
subject to the provisions of this article as well as the provisions
of N.J.S.A. 40A:21-1 et seq., and all rules and regulations promulgated
thereunder.
No exemptions shall be granted for
any property for which property taxes or any other municipal charges,
including interest, are delinquent or remain unpaid or for which penalties
for nonpayment are due or for any property for which a casino license
has been issued.
Any additional improvement or new
construction completed to a property already granted an exemption
during the period in which the exemption is in effect shall be eligible
for an additional exemption, just as if such property had not received
a previous exemption. The additional improvement or new construction
shall be considered as separate for purposes of calculating the exemption,
except that the assessed value of any previous improvement or new
construction shall be added to the assessed valuation as it was prior
to that improvement or new construction for the purpose of determining
the assessed value of the property from which any additional exemption
is to be subtracted.
Upon termination of any tax exemption
or any tax agreement approved pursuant to this article, a project
shall be subject to all applicable real property taxes as provided
by state law and regulation, as well as local ordinances. However,
nothing herein shall prohibit a project, upon termination of a tax
exemption or any tax agreement, from qualifying for and receiving
the full benefits of any other tax preferences provided by law.
During the first year following adoption
of this article, the Assessor shall include an appropriate notice
in the mailing of the annual property tax bills to property owners
advising them of the availability of tax exemptions under this article.
A. The E&A Officer, on behalf of the Mayor
and Borough 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, the Director of the Division of Taxation
in the Department of the Treasury, and to the Mayor and Borough Council,
the total amount of real property taxes exempted within the Borough
in the current tax year for each of the following:
(1) Improvements to dwellings or multiple dwellings.
(2) Improvements to commercial or industrial
structures.
(3) Construction to commercial or industrial
structures under tax agreements.
B. In the case of Subsection
A(3) above, as applicable, the report shall state instead the total amount of payments made in lieu of taxes according to the formula utilized by the Borough of Paulsboro, 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.
C. The E&A Officer shall be responsible
for ensuring the Borough's compliance with the provisions of this
section and any additional requirements imposed by statute.
Appeal of any determination made
by the Borough of Paulsboro under the terms of this article shall
be made to the Gloucester County Board of Taxation.
No application for tax exemption
shall be filed for an exemption to take initial effect in the 11th
tax year after initial adoption, or any tax year thereafter, unless
this article is readopted by the Mayor and Borough Council in accordance
with N.J.S.A. 40A:21-4.
The various parts, sections and clauses
of this article are hereby declared to be severable. If any part,
sentence, paragraph, section or clause is adjudged to be unconstitutional
or invalid by a court of competent jurisdiction, the remainder of
this article shall not be affected thereby.
Captions contained in this article
have been inserted only for the purposes of facilitating reference
to the various sections and are not intended and shall not be utilized
to construe the intent and meaning of the text of any section.
Any ordinances or parts thereof in
conflict with the provisions of this article are hereby repealed.
This article shall take effect upon
final passage and publication as provided by law, provided that any
exemptions approved thereafter shall not take effect until the following
tax year. After the effective date, this article shall only apply
to projects that have not received a construction permit as of the
effective date of this article.