[1]
Editor's Note: Section 24-1, Tax Exemption and Abatement, was readopted March 8, 2007 by Ordinance No. 2007-11 and shall remain in full force and effect for a period of 10 years. This section was readopted March 8, 2018 by Ord. No. 2018-7 and shall remain in effect for a period of 10 years pursuant to and in accordance with N.J.S.A. 40A:21-1.
[Ord. No. 98-54 § 21.1; Ord. No. 2007-11 § 1]
This section shall be known as the Township of Lakewood Tax
Exemption and Abatement of Eligible Structures Ordinance.
[Ord. No. 98-54 § 21.2; Ord. No. 2007-11 § 1]
The purpose of this section is to provide for exemption from
real property taxation of qualified improvements, and/or conversions,
or for construction of qualified commercial or industrial structures
located in an area hereinbefore designated, or hereinafter designated,
by the Township Committee, as an area in need of rehabilitation as
defined below.
[Ord. No. 98-54 § 21.3; Ord. No. 2007-11 § 1]
As used in this section:
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 section.
Shall mean a portion or all of a municipality which has been
determined to be an area in need of rehabilitation or redevelopment
pursuant to the "Local Redevelopment and Housing Act," (P.L. 1992,
c.79), a "blighted area" as determined pursuant to the "Blighted Areas
Act," (P.L. 1949, c.187), or which has been determined to be in need
of rehabilitation pursuant to P.L. 1975, c. 104, P.L. 1977, c.12,
or P.L. 1979, c.233, or which is located in the "Urban Enterprise
Zone" pursuant to P.L. 1983, c.303.
Shall mean the officer of the Township of Lakewood 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 municipality, assist in the
economic development of the municipality, maintain or increase the
tax base of the municipality and maintain or diversify and expand
commerce within the municipality. It shall not include any structure
or part 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 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 10%; and the property that the business
is relocating to has been the subject of a remedial action plan costing
in excess of $250,000 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.13:1D-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.).
Shall mean substantially ready for the intended use for which
a building or structure is constructed, improved or converted.
Shall mean the provision of a new commercial or industrial
structure, or the enlargement of the volume of an existing commercial
or industrial structure by more than 30%, but shall not mean the conversion
of an existing building or structure to another use.
Shall mean the alteration or renovation of a building or
structure in such manner as to convert the building or structure from
its previous use to use as a commercial or industrial structure.
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 section.
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 work, and which does not
change its permitted use. In the case of a 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 30%. 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 year period immediately preceding the filing of an application
pursuant to this section.
[Ord. No. 98-54 § 21.4; Ord. No. 2007-11 § 1; Ord. No. 2009-41 § 1]
a.
From and after the effective date of this section, any person, corporation, partnership or other legal entity owning property, which property is located in areas defined in subsection 24-1.2 herein, may make a claim for a five year tax exemption with respect to certain improvements allowable by N.J.S.A. 40A:21-1 et seq. for eligible structures so located by filing with the Tax Assessor within 30 days following the completion of the improvement an application form on file in the Office of the Tax Assessor in the Township of Lakewood Municipal Building. The application form shall be the form prescribed by the Director of the Division of Taxation, Department of the Treasury.
b.
In rendering its decision, the Township Committee shall review the
application to determine if it meets the following criteria:
1.
The property is located in the designated areas.
2.
The improvement and rehabilitation of the subject premises will tend
to increase opportunities for employment and ultimately broaden the
local tax base.
3.
The improvement and rehabilitation will tend to induce improvement,
construction and rehabilitation of industrial and/or commercial facilities
in the area.
4.
All other reasonable factors consonant with the legislative findings
set forth in N.J.S.A. 40A:21-1 et seq.
c.
After approval for exemption, the Tax Assessor's full and true
value of the improvements shall not be regarded as increasing the
value of such property for a period of five years after their completion,
notwithstanding that the value of the industrial and/or commercial
structure 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.
d.
The granting of such exemption shall be recorded and made a permanent
part of the official tax records of the Township, which record shall
contain a notice of the termination date of the exemption and the
consequences of transfer of title.
e.
Within 30 days after the execution of a tax agreement, the Township
Clerk shall forward a copy of the agreement to the Director of the
Division of Local Government Services in the Department of Community
Affairs.
f.
Every application shall be accompanied by a two hundred fifty ($250.00)
dollar nonrefundable application fee to defray the costs associated
with the application, including but not limited to public advertising
and mailing costs. This fee shall be nonrefundable in the event that
the application is denied or withdrawn.
[Ord. No. 98-54 § 21.5; Ord. No. 2007-11 § 1; Ord. No. 2009-41 § 2]
From and after the effective date of this section, any person,
corporation, partnership or other legal entity may make a request
for tax abatement for construction on, or conversion of property located
in the designated areas, which construction or conversion qualifies
as a "commercial or industrial structure" by filing with the Township
Committee through the Township Tax Assessor an application in the
form on file in the Assessor's office. Applicants are encouraged
to file the application with the Township before the commencement
of construction. The form of the application shall be in the form
prescribed by the Director, Division of Taxation, Department of the
Treasury and shall provide the following information:
a.
A general description of the commercial or industrial structure for
which abatement is sought;
b.
A legal description of all real estate necessary for the commercial
or industrial structure;
c.
Plans, drawings and other documents as may be required by the governing
body to demonstrate the structure and design of the commercial or
industrial structure;
d.
A description of the number, classes and type of employees to be
employed at the commercial or industrial structure site within two
years of completion of the commercial or industrial structure;
e.
A statement of the reasons for seeking tax abatement on the commercial
or industrial structure, and a description of the benefits to be realized
by the applicant if tax abatement is granted;
f.
Estimates of the cost of completing such commercial or industrial
structures;
g.
A statement showing: (1) the real property taxes currently being
assessed, at the commercial or industrial structure site; (2) estimated
tax payments that would be made annually by the applicant on the commercial
or industrial structure during the period of tax abatement; and (3)
estimated tax payments that would be made by the applicant on the
commercial or industrial structure during the first full year following
the termination of the tax abatement agreement;
h.
A description of any lease agreements between the applicant and proposed
users of the commercial or industrial structure, and a history and
description of the user's businesses;
i.
A detailed statement setting forth why the availability of the five
year tax abatement is an essential inducement to the applicant to
construct the commercial or industrial structure;
j.
A detailed statement setting forth the alternatives available to
the applicant if the five year tax abatement is not granted; and
k.
Such other pertinent information as the governing body may require.
l.
Every application for tax abatement pursuant to this subsection and every application for continuance of tax abatement pursuant to subsection 24-1.13 shall be accompanied by a two hundred fifty ($250.00) dollar nonrefundable application fee to defray the costs associated with the application, including but not limited to public advertising and mailing costs. This fee shall be nonrefundable in the event that the application is denied or withdrawn.
[Ord. No. 98-54 § 21.6; Ord. No. 2007-11 § 1; Ord. No. 2009-41 § 3]
a.
After receipt of a properly completed application, and all required
supporting materials for commercial or industrial structure tax abatement,
the Township Clerk shall place the matter on the agenda for a decision
by the Township Committee. If the application is granted, an ordinance
shall be authorized directing that an agreement for tax abatement
for the particular commercial or industrial structure be entered into
by and between the applicant and the Township.
[Ord. No. 98-54 § 21.7; Ord. No. 2007-11 § 1; Ord. No. 2011-32 § 1; Ord. No. 2017-18]
Upon adoption of an ordinance granting tax abatement for a particular
commercial or industrial structure located in a designated area, the
Township Committee may enter into an agreement with the applicant
for the abatement of local real property taxes. The agreement shall
provide for the applicant to pay to the municipality in lieu of full
property tax payments an amount to be computed by one, but in no case
a combination, of the following formulas:
a.
Cost Basis. The agreement may provide for the applicant to pay to
the municipality in lieu of full property tax payments an annual amount
equal to 2% of the cost of the commercial or industrial structure.
For the purposes of the agreement, "the cost of the commercial or
industrial structure" shall be defined as only the cost or fair market
value of direct labor and all material used in construction, expansion
or rehabilitation of all buildings, structures, and facilities at
the commercial or industrial structure site, including the costs,
if any, of land acquisition and land preparation, provision of access
roads, utilities, drainage facilities, and parking facilities, together
with architectural, engineering, legal, surveying, testing and contractor's
fees associated with the commercial or industrial structure; provided
that the applicant shall cause such costs to be certified and verified
to the Governing Body by an independent and qualified architect, following
the completion of the commercial or industrial structure.
b.
Gross Revenue Basis. The agreement may provide for the applicant
to pay to the municipality in lieu of full property tax payments an
amount equal to 15% of the annual gross revenues from the commercial
or industrial structure. For purposes of the agreement, "annual gross
revenues" means the total annual gross rental and other income payable
to the owner of the commercial or industrial structure from the commercial
or industrial structure. If in any leasing, any real estate taxes
or assessment on property included in the commercial or industrial
structure, any premiums for fire or other insurance on or concerning
property included in the commercial or industrial structure, or any
operating or maintenance expenses ordinarily paid by the landlord,
are to be paid by the tenant, then those payments shall be computed
and deemed to be part of the rent and shall be included in the annual
gross revenue. The tax agreement shall establish the method of computing
the revenues and may establish a method of arbitration by which either
the landlord or tenant may dispute the amount of payments so included
in the annual gross revenue.
c.
Tax Phase-In Basis. The agreement may provide for the applicant to
pay to the municipality in lieu of full property taxes an amount equal
to a percentage of taxes otherwise due, according to the following
schedule:
1.
In the first full tax year after completion, no payment in lieu of
taxes otherwise due;
2.
In the second tax year, an amount not less than 20% of taxes otherwise
due;
3.
In the third tax year, an amount not less than 40% of taxes otherwise
due;
4.
In the fourth tax year, an amount not less than 60% of taxes otherwise
due;
5.
In the fifth tax year, an amount not less than 80% of taxes otherwise
due.
d.
No Appeal. The agreement shall provide that during the term that
the agreement is in effect the applicant agrees not to file a tax
appeal or in any way contest the assessed value of the land, or the
value of any abated or non-abated improvements as set forth in the
agreement.
e.
Once an abatement is granted, all appropriate taxes and abatement
charges must be maintained and be current. If taxes and abatement
charges are not current, the holder of the abatement shall be given
30 days after notice to bring the taxes and abatement charges current.
Failure to do so will result in an irrevocable forfeiture of the abatement.
[Ord. No. 98-54 § 21.8; Ord. No. 2006-49 § 1; Ord. No. 2007-11 § 1]
All tax abatement agreements entered into by the Township of
Lakewood pursuant to the terms of this section shall require the applicant
to obtain a building permit and commence construction of the commercial
or industrial structure within three years from the date of the tax
abatement agreement. At the conclusion of said three year period,
any approval for exemption or abatement shall lapse, unless the applicant,
on or before 60 days prior to said expiration date, files a written
request for an extension and said extension request is granted by
the Lakewood Township Committee.
All tax abatement agreements entered into by the Township of
Lakewood pursuant to the terms of this section shall be in effect
for a period of not more than five full years next following the date
of completion of the commercial or industrial structure.
[Ord. No. 98-54 § 21.9; Ord. No. 2007-11 § 1]
All commercial or industrial structures subject to the agreements
for tax abatement as provided herein shall be subject to all applicable
Federal, State and local laws and regulations, including, but not
limited to pollution control, worker safety, discrimination in employment,
zoning, planning and building code requirements.
[Ord. No. 98-54 § 21.10; Ord. No. 2007-11 § 1]
That percentage which the payment in lieu of taxes for tax abated
property bears to the property tax which would have been paid had
an abatement not been granted for said property under the agreement
shall be applied to the valuation of the property to be included in
the valuation of the municipality for determining equalization for
County tax apportionment and school aid during the term of the tax
abatement agreements covering such properties, and at the termination
of such an agreement for a property the reduced valuation procedure
required under this section shall no longer apply.
[Ord. No. 98-54 § 21.11; Ord. No. 2007-11 § 1]
The abatement of real property taxes provided by the Township
pursuant to this section shall apply to property taxes levied for
municipal purposes, fire district purposes, school purposes, County
government purposes and for the purposes of funding any other property
tax exemptions or abatements on properties located in the designated
areas.
[Ord. No. 98-54 § 21.12; Ord. No. 2007-11 § 1]
Within 30 days after the execution of a property tax abatement
agreement as provided hereunder, the Township Clerk shall forward
a copy of the agreement to the Director, Division of Local Government
Services, Department of Community Affairs.
[Ord. No. 98-54 § 21.13; Ord. No. 2007-11 § 1]
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 municipality shall notify
the property owner and Tax Collector forthwith and the Tax Collector
shall within 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 abatement shall continue,
and the agreement shall remain in effect.
b.
At the termination of a tax agreement, a commercial or industrial
structure 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 commercial or industrial structure, at the
termination of an agreement, from qualifying for and receiving the
full benefits of any other tax preferences provided by law.
[Ord. No. 98-54 § 21.14; Ord. No. 2007-11 § 1]
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 property subject to tax
agreement, 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 section, plus any portion of the
assessed valuation of the improvement, conversion or construction
not allowed an exemption pursuant to this section. Subject to the
provisions of the adopting ordinance, 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. 98-54 § 21.15; Ord. No. 2007-11 § 1]
Any additional improvement, conversion or construction, completed
on a property granted a previous exemption or abatement pursuant to
this section 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 added to the assessed valuation
as it was prior to that improvement, conversion or construction for
the purpose of determining the assessed valuation of the property
from which any additional abatement is to be subtracted.
[Ord. No. 98-54 § 21.16; Ord. No. 2007-11 § 1]
No exemption or abatement shall be granted, or tax agreement
entered into, pursuant to this section with respect to any property
for which taxes are delinquent or remain unpaid, or for which penalties
for nonpayment of taxes are due.
[Ord. No. 98-54 § 21.17; Ord. No. 2007-11 § 1]
No exemption or abatement shall be granted pursuant to this
section except upon written application filed with the Township Tax
Assessor and approved by the Assessor and municipal governing body.
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 Township of Lakewood, and shall be
filed with the Assessor within 30 days, including Saturdays and Sundays,
following completion of the improvement, conversion or construction.
Every application for exemption or abatement, which is filed within
the time specified, may be approved and allowed by the Governing Body
to the degree that the application is consistent with the provisions
of the adopting ordinance or the tax agreement, provided that the
improvement, conversion or construction for which the application
is made qualified as an improvement, conversion or construction pursuant
to the provisions of this section and the tax agreement, if any. The
granting of an exemption or abatement, or tax agreement shall be recorded
and made a permanent part of the official tax records of the Township,
which record shall contain a notice of the termination date thereof.
[Ord. No. 98-54 § 21.18; Ord. No. 2007-11 § 1]
The Township Tax Collector shall include a notice describing
the exemption program or exemption and abatement program provided
for by this section in the mailing of annual property bills to each
owner of property located in the areas in which exemptions, or exemptions
and abatements are allowed pursuant to this section during the first
year following adoption of the section.
[Ord. No. 98-54 § 21.19; Ord. No. 2007-11 § 1]
The municipal governing body 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 in the municipality in the current tax year for each of the
following:
a.
Improvements or conversions to commercial and/or industrial structures;
b.
Construction of commercial and/or industrial structures under tax
agreements.
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In the case of paragraph b 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 commercial or industrial structure had the tax
agreement not been in effect, for the current tax year.
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[Ord. No. 98-54 § 21.20; Ord. No. 2007-11 § 1]
Unless preempted by, or otherwise not in compliance with New
Jersey State Tax Laws or Statutes, no exemption or abatement granted
by any prior ordinances or law shall be affected or terminated by
this section, but shall remain in effect for the time and under the
terms granted as if the ordinance had not been superseded or repealed.
[Ord. No. 98-54 § 21.21; Ord. No. 2007-11 § 1]
If any subsection, part, phrase or provision of this section
or the application thereof to any person, commercial or industrial
structure or circumstances, be adjudged invalid by any Court of competent
jurisdiction, such judgment shall be confined in its application to
the subsection, part, phrase, provision or application directly involved
in the controversy in which such judgment shall have been rendered
and shall not affect or impair the validity of the remainder of this
section or the application thereof to other persons, commercial or
industrial structures or circumstances.
[Ord. No. 98-54 § 21.22; Ord. No. 2007-11 § 1]
a.
Statement of Purpose. The purpose of the inclusion of this subsection
is to specifically define the guidelines for the granting of tax abatement
in order to encourage industrial and commercial growth in a systematic
and orderly fashion in accordance with the Township Master Plan.
Tax abatement may be granted at the discretion of the Township
Committee, which, after weighing all of the pertinent facts, shall
make a decision giving proper weight to those areas which may not
properly develop without the assistance of tax abatement.
b.
Additional Criteria.
1.
Location. Industrial and commercial structures located in a designated area as previously set forth in subsection 24-1.2 are eligible for tax abatement.
2.
Time. Applications for tax abatement must be filed with the Township
Tax Assessor within 30 days, including Saturdays and Sundays, following
completion of the improvement, conversion, alteration or construction.
Failure to meet this criterion will result in automatic denial of
the application.
[Ord. No. 98-54 § 21.23; Ord. No. 2007-11 § 1]
This section is retroactive to January 18, 1994, pursuant to
N.J.S.A. 40A:21-1 et seq., P.L. 1991, c.441. All exemptions and abatements,
and all tax agreements that have been entered into since that date
are hereby deemed by the Township Committee to be valid and are continued
under this section, unless preempted by or otherwise not in compliance
with New Jersey State Tax Laws or Statutes. All exemptions and abatements,
and all tax agreements entered into prior to January 18, 1994 are
also continued, to the extent that all such abatements and exemptions,
and all such tax agreements have not expired or terminated. Exemptions
and abatements granted, and tax agreements entered into subsequent
to the effective date of this section, shall be effective commencing
the first full tax year after approval, and for tax years thereafter.
[Ord. No. 2010-30 § 1]
It is the purpose of this section to implement the provisions
of P.L. 2003, c. 114, 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 on or after
July 1, 2004, of a room or rooms in a hotel subject to taxation pursuant
to subsection (d) of section 3 of P.L. 1966, c. 40 (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.
[Ord. No. 2010-30 § 1]
There is hereby established a Hotel and Motel Room Occupancy
Tax in the Township of Lakewood which shall be fixed at a uniform
percentage rate of 2% on charges or rent for every occupancy of a
hotel or motel room in the Township of Lakewood of a room or rooms
in a hotel subject to taxation pursuant to subsection (d) of section
3 of P.L. 1966, c. 40, N.J.S.A. 54:32B-3 (sales tax). The Hotel and
Motel Room Occupancy 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.
[Ord. No. 2010-30 § 1]
The Hotel and Motel Room Occupancy Tax authorized herein shall
not be imposed on the rent for an occupancy if the purchaser, user
or consumer is an entity exempt from the tax imposed on an occupancy
under the "Sales and Use Tax Act" pursuant to subsection (a) of section
9 of P.L. 1966, c.30 (C.54:32B-9).
[Ord. No. 2010-30 § 1]
In accordance with the requirements of P.L. 2003, c.114:
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.
e.
The tax imposed by this section shall be collected on behalf of the
Township by the person collecting the rent from the hotel or motel
customer. Each person required to collect the tax herein imposed shall
be personally liable for the tax imposed, collected or required to
be collected hereunder. Any such person 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 Township shall be joined as a party
in any action or proceeding brought to collect the tax.
[Ord. No. 2010-30 § 1]
Any person violating the terms of this section, whether as principal, agent or employee of another, shall, upon conviction in the Municipal Court of the Township of Lakewood in the County of Ocean, be subject to the penalties as provided in Chapter 1, Section 1-5, General Penalty, in the discretion of the Judge of the Municipal Court of the Township of Lakewood.
[Ord. No. 2015-16; Ord. No. 2017-23 § 1]
When used in this section, the following terms shall be defined
as indicated:
Shall mean the exemption of property from real estate taxes,
subject to the payment of an annual service charge in lieu of taxes,
authorized pursuant to the provisions of the Long Term Tax Exemption
Law, (N.J.S.A. 40A:20-1 et seq.). Where an abatement or exemption
is authorized pursuant to the provision of the Long Term Tax Exemption
Law, real estate taxes levied on the value of land shall continue
to be assessed for the purpose of general taxation, except as otherwise
provided by State statute.
Shall mean the Long Term Tax Exemption Law (C.40A:20-1 et
seq.).
Shall mean the contract entered into between the Township
of Lakewood and an entity, pursuant to the Act.
Shall mean the information and data required to be submitted
by an entity requesting an abatement or exemption as required by the
Township.
Shall mean a financial statement or report of the fiscal
operations of a project, including but not limited to revenues and
expenses, which shall be submitted annually pursuant to N.J.S.A. 40A:20-9(d).
The contents of an audit shall be prepared in a manner consistent
with the current standards of the Financial Accounting Standards Board,
shall fully detail all items required by applicable statutes, and
shall be certified as to its conformance with such standards by a
Certified Public Accountant who is licensed to practice that profession
in the State of New Jersey.
Shall mean the Chief Financial Officer of the Township of
Lakewood.
Shall mean an urban renewal entity meeting the qualifications
set forth in N.J.S.A. 40A:20-5.
Shall mean:
A combination of land, improvement and equipment which have
been integrated into a functioning unit intended for the assembling,
processing and manufacturing of finished or partially finished products
from raw materials or fabricated parts but shall not include warehouses;
and
Where the Township Committee determines that the project will
maintain or provide gainful employment within the Township, assist
in the economic development of the Township, maintain or increase
the tax base of the Township and maintain or diversify and expand
commerce within the Township.
Shall mean accountants and auditors that are specifically
retained by the Township of Lakewood pursuant to proposals from such
licensed professionals for the purposes of reviewing long tax exemption
applications.
Shall mean the work or undertaking which has as its purpose
the redevelopment of all or any part of a redevelopment area, in accordance
with N.J.S.A. 40A:20-3(e).
He or it shall mean the masculine, feminine or neuter gender,
the singular as well as the plural, as proper meaning requires.
Shall mean the real property and improvements thereon which
existed prior to the execution of a financial agreement.
Shall mean the Assessor for the Township of Lakewood.
Shall mean the Township of Lakewood, New Jersey.
Shall mean the Township Committee of the Township of Lakewood,
New Jersey.
[Ord. No. 2015-16]
This section sets forth the procedures to be followed by the
Township in the review and consideration of applications for abatement
or exemption of real estate taxes, and the administration of financial
agreements authorized by the Township Committee. This section is intended
to apply to residential, industrial and commercial projects. Should
there be any conflicting provisions in this section with the provisions
of the State of New Jersey Long Term Tax Exemption Law, N.J.S.A. 40A:20-1
et seq., the provision of the Long Term Tax Exemption Law will be
controlling. N.J.S.A. 40A:20-12 shall govern permissible annual service
charge amounts and permissible durations of any long term tax exemption
or abatement. However, this section does not commit or require the
Township to approve any application submitted in accordance herewith.
In considering each application, the Township shall consider, in part,
the benefits of the development project for the Township and the impact
of any tax abatement and/or exemption requested on the budget of the
Township.
[Ord. No. 2015-16; Ord. No. 2017-23 § 2]
a.
Form of Application. All applications shall be submitted by an entity
utilizing the application form on file with the Office of the Township
Clerk. The application form may be revised from time to time. An application
shall include but not be limited to: identification of the property
by metes and bounds, tax map block and lots and corresponding street
address for which the exemption is sought, including a survey or plotting
from the tax map, the requested duration of the exemption, the purpose
for which the project shall be used, a detailed description of the
improvements to be made to the property, an estimate of the total
project cost or total project unit cost, where applicable, as defined
by the Act, a 10 year projected pro forma for the project, an estimated
schedule for commencement and completion of construction, a copy of
the resolution granting final site plan approval, and a declaration
that the proposed project is located within a redevelopment area or
area appurtenant thereto an Urban Enterprise Zone, or is for a redevelopment
relocation housing project and any other information which the application
may require.
In addition, the application shall set forth the representations
of the entity as to the assessments on the property for land and improvements
as of the date of the filing of the application, the tax levy on the
property for the year in which the application is filed, and the status
of all municipal taxes, fees and charges due and payable to the Township
arising from or imposed on the property. A complete explanation as
to the expected methods and sources of financing the project shall
also be included.
The application shall further contain statements of disclosure
in the form contained in the application as to all parties, including
parent and subsidiary companies having any interest in the property
and/or project, or any other tax exemption or financial agreement
then in force and effect in which any of those parties have any interest,
and as to any other contracts or agreements with the Township in which
any of those parties have any interest, and if so, provide the Federal
Identification Number of each party listed.
The application shall contain the certification of the entity
that contraction of the project has not and will not commence prior
to approval of exemption and execution of financial agreement between
the Township and the entity.
The application shall also include an estimate by the entity
as to the number and type of jobs to be created by the project during
the period of construction and the number and type of permanent jobs
to be created by the project within one year after the completion
date. The application shall contain the affirmative action plan of
the entity and a certification by the entity that such plan complies
with the affirmative action requirements of the Township.
The application shall also include the certification of the
entity that the proposed project meets the requirements of the laws
of New Jersey for exemption. Where a property is required to be declared
"in need of redevelopment" by the Township and a redevelopment plan
is required to be adopted by the Township as a prerequisite to the
grant of an exemption, the entity shall further certify that the proposed
project complies with the redevelopment plan as adopted.
The application shall also include a proposed financial agreement
prepared by the entity, which shall include at minimum the terms and
conditions required by the Act.
Seven copies of an application shall be submitted with all copies
executed in the original by an authorized agent or officer of the
entity. Where the entity is a corporation or company, the signature
on the application shall be certified as to its authenticity and authority
by the submission of a notarized corporate or company resolution,
affixed with the seal of the corporation or company and the signature
of the secretary of the corporation of company, or similar bona fide
evidence.
b.
Application Fee. No application for abatement or exemption submitted
pursuant to this section shall be accepted unless it is accompanied
by full payment of the required application fee. Such fees shall include
a payment of $5,000.00 specifically earmarked for the retention of
the services of a PILOT Review Professional, and $2,000.00 for each
application requested. The application fee shall be received for processing
the application. Further, the administrative fee for processing a
request for the assignment and assumption of a tax exemption and financial
agreement shall be 2% of the annual service charge for the current
year. Checks shall be certified and payable to the Township. The application
fee shall be nonrefundable.
c.
Submission. All applications for abatement or exemption shall be
submitted to the Township Manager either in person or by certified
mail, at his office.
[Ord. No. 2015-16; Ord. No. 2017-23 § 3]
a.
Distribution of Application. Upon receipt of any application, the
Township Manager shall forward one copy of the application to the
Executive Director of Economic Development, one copy to the PILOT
Review Professional, one copy to the Tax Assessor, one copy to the
Tax Collector, one copy to the Township Clerk and one copy to the
Township Attorney. The final copy of the application shall be retained
by the Township Manager and shall be placed on permanent file with
that office.
b.
Development Review. Upon receipt of an application, the Executive
Director of Economic Development shall conduct a complete review of
the project outlined therein. Such review shall take into consideration
the propriety, accuracy and validity of the description(s), plan(s)
and estimate(s) submitted, the degree to which the project complies
with the Township's development goals as expressed in the master
plan, zoning ordinances, redevelopment plans, the necessity of tax
abatement, and the feasibility of the project.
Based on the review, the Executive Director of Economic Development
shall submit his recommendation to approve or disapprove the application.
Such recommendation shall include any changes to the application that
may be deemed necessary by the Executive Director of Economic Development,
as well as set forth the reasons for the recommendation.
c.
Financial Review. Upon receipt of an application the PILOT Review
Professional shall conduct a financial review of the application including
a cost and benefit analysis of the proposed project. In addition,
the PILOT Review Professional shall obtain written certifications
from municipal officials as necessary to review and substantiate the
information contained within the application. Those certifications
shall include the following:
1.
Certification of the Tax Assessor as to:
(a)
The taxes levied on the real property included within the project
in both the year in which the application was filed and the immediately
preceding year.
(b)
The precise identification of all real property included within
the project, including the metes and bounds description, all tax block
and lot designations and corresponding street addresses, as well as
a survey or plotting of the property on the official tax map.
(c)
The owner of record as recorded in the office for each tax lot
included within the project.
(d)
The tax assessment for land and improvements then in effect
for each tax lot included within the project.
(e)
The total amount assessed on all real property included within
the project in the calendar year immediately preceding its acquisition
by the Township, the Township's agent, the entity or the entity's
agent.
2.
Certification of the Tax Collector as to:
(a)
The current status of payments due for real estate tax services
charges and/or municipal liens of any type arising from the property
included within the project or from any other property owned by the
entity.
(b)
The taxes levied on the real property included within the project
in both the year in which the application was filed and the immediately
preceding year.
(c)
The current status of payments due for any financial agreement
then in force and effect which the entity is a party.
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The PILOT Review Professional, Tax Assessor and Tax Collector
shall submit their findings along with the recommendation to the Township
Manager. Such recommendation shall state the basis or reasons supporting
their recommendation.
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d.
Legal Review. Upon receipt of an application, the Township Attorney
shall conduct a review as to the form and legality of the application.
In addition, the Township Attorney shall obtain written certifications
from municipal officials as necessary to substantiate the information
contained in the application.
At a minimum, such certifications shall include the following:
1.
The certifications provided in paragraph c above.
2.
Certifications of the Secretary of the Board of Adjustment identifying
whether the use proposed for the project conforms to the Zoning Ordinance
of the Township.
3.
Certification of the Secretary of the Planning Board, if applicable,
identifying whether the project is located within a redevelopment
area and/or Urban Enterprise Zone and identifying whether the project
has received final site plan approval from the Planning Board.
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The PILOT Review Professional shall also review any financial
agreements then in force and effect to determine the extent to which
each party to the application is a party to any other agreements with
the Township and whether they are current on their obligations in
those agreements.
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Upon receipt of the aforesaid certifications and the review
thereof, the Township Attorney shall make a determination as to the
propriety of the application. Applications shall be deemed proper
in those cases where they are presented in the property form, satisfy
the requirements of this section and all other applicable statutes
and ordinances, and for which no delinquency has been found with respect
to any payments due to the Township.
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Where an application is deemed proper, the Township Attorney
shall prepare an ordinance in the form necessary to authorize the
exemption and shall review, revise and modify the form of the financial
agreement, as appropriate.
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Where an application is deemed improper or deficient, the Township
Attorney shall prepare a correspondence outlining those aspects of
the application that are deficient and shall forward the correspondence
with the application, the certifications and the recommendation of
the PILOT Review Professional and the Executive Director of Economic
Development to the Township Committee for consideration.
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e.
Township Committee Consideration. Upon receipt of an ordinance to
authorize a financial agreement, the application together with all
of the documents which were submitted by the applicant, the certifications
and review required by this section, the Township Committee shall
place the application on its agenda for consideration. Upon action
by the Township Committee, an ordinance may be adopted, rejected or
returned to Administration for correction, modification or further
information. Notice of the adoption of an ordinance granting exemption
and approving a financial agreement shall be published, pursuant to
N.J.S.A. 40A:20-12.
[Ord. No. 2015-16]
a.
Form of Financial Agreement. A financial agreement shall be in the
form appropriate to the nature of the project approved by the Township
Committee. The financial agreements shall at a minimum set forth the
identification of the affected property, the nature and magnitude
of the improvements to be constructed or developed thereon, the service
charges to be paid to the Township and the conditions thereof, the
duration of the exemption and the grounds for termination of the exemption.
The financial agreement shall in all cases provide that any transfer
in the ownership of an entity that is greater than 10% or that would
materially change the terms of the financial agreement shall be void
unless disclosed to the Township in an annual disclosure statement
or in correspondence sent to the Township in advance of an annual
disclosure. The financial agreement shall require the timely submission
of a certified audit of the total project cost and a certified audit
of the fiscal operations of the project, and shall require timely
payment of all municipal taxes, fees and charges arising out of the
agreement or in any way arising out of the property. The financial
agreement shall provide that the failure to comply with the requirement
to submit certified audits, make payment of municipal taxes, fees
and charges, or failure to comply with any material condition of the
agreement, shall be grounds for the Township to terminate the agreement,
and/or to exercise such other remedies as may be provided by statute,
municipal ordinance or the financial agreement.
The financial agreement shall further provide for the reconciliation
of the estimated annual service charges and administrative fees that
are to be paid to the Township, based on the submission of a certified
audit.
b.
Execution of Financial Agreement. Upon adoption of an ordinance by
the Township Committee authorizing exemption, it shall be the responsibility
of the Township Clerk to insure that the financial agreement is fully
executed. No financial agreement shall be considered to be in force
and effect unless and until it has been signed by the entity, the
Mayor or Deputy Mayor, and dated and certified by the Township Clerk
by his or her signature and affixing the Municipal Seal.
c.
Distribution of Executed Financial Agreement. When a financial agreement
has been fully executed, the Township Clerk shall be responsible for
distributing certified copies thereof to the entity, the Tax Assessor,
the Tax Collector, the Construction Code Official and the Township
Attorney. The Township Clerk shall retain one executed copy which
shall be placed on permanent file with this office, where it shall
be available for examination during regular business hours. Further,
the Township Clerk shall forward a certified copy of all ordinances
approving an exemption and the accompanying Financial Agreement to
the Director of the Division of Local Government Services, pursuant
to N.J.S.A. 40A:20-2.
[Ord. No. 2015-16]
During the period of construction of a project, the Tax Assessor
and the Construction Code Official shall each be responsible for oversight
of the project as outlined below.
a.
Permits and Inspections. Upon receipt of an executed financial agreement,
the Construction Code Official shall cause permits to be issued upon
the application of the entity and shall cause inspections of all work
activity to be conducted in the manner provided by applicable municipal
ordinances. The Construction Code Official shall notify the Township
Manager of any failure by the entity to properly apply for permits,
to begin or complete construction within the time frame set forth
in the financial agreement. When permits are issued, the Construction
Code Official shall be responsible for notifying the Tax Assessor,
Tax Collector and the Township Manager of such issuance.
b.
Quarterly Report to Assessment. From the date of the execution of
a financial agreement until the issuance of a permanent certificate
of occupancy for the project, the Construction Code Official shall
report to the Tax Assessor each quarter as to the status of permit
and construction activity on the project. Upon the total or partial
completion of construction, the Construction Code Official shall issue
a certificate of occupancy in appropriate form, and shall be responsible
for filing a copy of every certificate with the Tax Assessor, Tax
Collector and the Township Manager.
c.
Assessments and Taxes. When a permanent certificate of occupancy
is issued for a project granted exemption pursuant to the Act, the
Tax Assessor shall reflect the improvements and the land thereof,
as authorized, on the Exempt Property List or as otherwise required
by State statute. Further, the Tax Assessor shall exempt the assessment
of all improvements covered by the financial agreement during the
period the exemption remains in effect. Assessments for land shall
remain taxable throughout the term of the exemption, except as otherwise
provided.
At any time that the Tax Assessor causes the assessment of the
improvements or land of a project to be removed, in whole or in part,
from taxable to exempt status, he shall so notify the Tax Collector
in writing so as to insure the commencement and payment of annual
services charges, pursuant to the terms of the financial agreement.
d.
Collection and Audit. Upon receipt of an executed financial agreement,
the Division of Revenue Collection shall note within its books of
account a record of the execution of the agreement and the dates provide
for commencement and completion of construction. The Tax Collector
shall thereafter continue to levy taxes and collect payment thereof
on the property until the occurrence of the following:
1.
In the event that a certificate of occupancy is issued for the project,
the Tax Collector shall immediately cease to levy or collect taxes
on the portion of the assessed value covered by the certificate of
occupancy and shall instead commence billing the entity the estimate
annual service charge as required by the financial agreement. Where
the financial agreement is authorized pursuant to the Act, taxes on
the value of the land shall continue to be levied and collected according
to the laws of New Jersey, except as otherwise authorized.
When a certificate of occupancy for a project is issued, in
addition to the steps outlined above, the entity shall submit to the
Chief Financial Officer, Tax Collector and the Township Clerk a copy
of a certified total project cost audit prepared by a certified public
accountant and the independent and qualified architect's certification
required by the Act, within 90 days from the date of issuance of the
certificate of occupancy.
The Chief Financial Officer shall review the certified total
project cost audit and the architect's certification and make
a determination as to the acceptability of the audit. If the audit
is deemed unacceptable it may be performed by the Township's
designed auditor and the cost thereof shall be borne by the entity.
The Township shall bill the entity for the cost of the audit. Once
the audit is accepted, if its findings cause any change in the basis
to be used in the determination of the annual service charge, net
profit or excess profits, the Township shall bill the entity for any
adjustment. The Chief Financial Officer shall also maintain a copy
of an approved certified total project cost audit with the permanent
files of the Department of Finance office.
Upon adoption of an ordinance authorizing amendment to the financial agreement, the Township shall bill the entity for the cost of the audit services and for any additional service charges resulting from an adjustment of the estimate service charges, and thereafter annual services charges or excess profits, if owed, shall be billed to the entity. The Township Clerk shall be responsible for distributing and filing executed copies of the financial agreement, as amended, in the same manner as set forth in subsection 24-3.5c of this section.
2.
In the event that the entity fails to commence or complete construction of the project within the time required by the financial agreement, fails to make payment of annual service charges as required by the agreement, or otherwise fails to satisfy a material condition of the agreement, the Township shall thereupon take steps necessary to terminate the financial agreement and to advise the Tax Assessor and the Tax Collector of the actions to be taken regarding the assessment and collection of real estate taxes. The Township adopt an ordinance necessary to authorize the termination of the financial agreement. Upon adoption of such an ordinance, the Township Clerk shall be responsible for filing and distributing the ordinance in accordance with the procedures established by subsection 24-3.5c of this section.
[Ord. No. 2015-16]
After construction of the project is completed and the issuance
of a permanent certificate of occupancy, the entity shall operate
the project in conformance with the terms of the financial agreement.
The Department of Finance shall be responsible for oversight and administration
of the financial agreement during the term of the exemption, in accordance
with the procedures set forth as follows:
a.
Billing and Payment. During the term of an exemption, the Tax Collector
shall bill service charges quarterly. The bills prepared by the Department
of Finance shall reflect the taxes due on the value of all land included
within the project and all service charges, or other fees or charges
due on the improvements, respectively. If authorized by law, the land
upon which housing is constructed, acquired or rehabilitated by an
entity, may be exempt from taxation during the term of the financial
agreement. Irrespective of the date of issuance, any bill for annual
service charges or other municipal charges shall be deemed to have
been issued on the first day of each calendar quarter and to be due
and payable within 30 calendar days thereafter. Where annual service
charges are billed on the basis of estimated or projected figures,
any payments thereof shall be reconciled upon the submission of a
certified audit. In such instance, the entity shall make any additional
or required payments within 90 days after the close of its fiscal
year. Any additional payment by an entity shall be submitted along
with a statement by a certified public accountant, attesting that
the additional payment was the actual amount due based upon the gross
revenue or total project cost as computed in accordance with provision
of the act and the financial agreement.
All payments due to the Township arising out of the financial
agreement which are not paid as of the date due shall be subject to
the same charges for penalties and interest as arrears then in effect
for nonpayment of real estate taxes.
The Department of Finance shall accept all payments made pursuant
to an effect and valid financial agreement and shall maintain books
of account as to each agreement. Except as otherwise required by law,
the Department of Finance shall apply payments received for real estate
taxes in the following order: first, amounts due for penalties and
interest on taxes, and then amounts due for the principal of tax payments.
As to payments received for service charges, first, amounts due for
penalties and interest, and then, amounts due for the principal of
service charges directs to the Department of Finance.
In addition to payment of the annual service charge an entity
shall be required to pay an annual administrative fee to the Township.
The requirement to pay an annual administrative fee shall be included
as a covenant in all deeds to a purchaser or transferee of a project
or unit owner thereof. The annual administrative fee shall be 2% of
the annual service charge payable and due on or before February 1st
of each year. In the event of an entity or owner of a property granted
exemption pursuant to the Act does not pay the annual administrative
fee, such delinquency shall be grounds for rescission or termination
of the exemption.
b.
Annual Audits. Where required by the Act, other applicable law or
by the financial agreement, an entity shall submit a certified audit
prepared by a certified public accountant of the financial performance
of the project. A certified audit shall be submitted each year within
90 days after the end of the fiscal year of the entity to the Department
of Finance with a simultaneous copy to the Township Clerk for archival
purposes. As part of or in addition to the submission of a certified
audit, the entity shall submit a statement prepared by a certified
public accountant attesting to the net profits and the percentage
of excess profits utilized to maintain reserves authorized pursuant
to the provisions of the Act. The Department of Finance shall review
each audit upon submission and make a determination as to any adjustment
required in the annual service charge, net profit and/or excess profits.
The certified audit shall be submitted to the Chief Financial
Officer for review. If the Chief Financial Officer determines that
an audit is acceptable, it shall be used as the basis for the adjustments
of any taxes, charges or fees outlined in paragraph a of this subsection.
If it is determined that a certified audit is not acceptable, the
Department of Finance shall notify the entity, and the entity shall
have responsibility to cure the deficiencies identified and to submit
a corrected or restated audit. As part of the audit process, in the
event that the certified audit is determined to be unacceptable, the
entity shall have responsibility for the payment of a fee to offset
the Township's cost for review of the certified audit. This fee
shall be billed by the Department of Finance as part of the annual
service charge and shall be payable under the same terms as that charge.
c.
Noncompliance. If an entity fails to comply with the requirements
for submission of a certified audit and/or timely payment of real
estate taxes and service charges during the term of the financial
agreement, the Department of Finance shall have responsibility to
enforce the terms of the financial agreement through the following
procedure. Such procedure shall not be the Township's sole remedy,
but rather shall be used in addition to such other remedies as may
be provided by the laws of New Jersey and the terms of the financial
agreement.
1.
In the case where any payment due to the Township pursuant to a financial
agreement, whether arising from real estate taxes or service charges
is in arrears for a period of six months or more, the Department of
Finance shall notify the entity or responsible party that unless the
total amount due including penalties and interest and subsequent charges
are brought to current status within a period of 30 days from the
date of the notification, the exemption and financial agreement shall
be rescinded. If the entity fails to comply with such notice, the
Department of Finance shall recommend that to the Township Committee
that an ordinance rescinding the exemption and financial agreement
be adopted, and shall notify the Tax Assessor of the pending action.
Where an exemption and financial agreement is rescinded, the
entity shall have 30 calendar days to seek reinstatement of the exemption
and financial agreement, which shall only be permitted when all obligations
of the entity or person receiving the benefit of an exemption are
satisfied and made current. Upon satisfaction of all obligations,
the Department of Finance shall recommend to the Township Committee
that an ordinance be prepared to reinstate the exemption and financial
agreement for the remainder of its term.
It shall be the responsibility of the Township Clerk to file
and distribute copies of all ordinances to rescind or reinstate an
exemption and financial agreement.
2.
In the event of any nonpayment as outlined in paragraph c1 of this
subsection, in addition to the remedies outlined therein, the entity
by signing the financial agreement agrees that the Township shall
have the same rights to enforce liens and commence foreclosure proceedings
against its project as though the nonpayment were real estate taxes.
The Township may exercise such rights by following the procedures
established by State statue and local ordinances for the collection
of delinquent real estate taxes.
3.
Where any certified audit required to be submitted pursuant to a
financial agreement is delinquent for a period of 30 days or more
from the date required to be submitted, the Department of Finance
shall notify the entity that unless the audit submitted in proper
form within 30 days from the date of notification, the exemption and
financial agreement shall be rescinded. If the entity fails to comply
with the notice, the Division of Revenue Collection shall recommend
to the Township Committee that an ordinance rescinding the exemption
and financial agreement, be adopted which shall cause the project
or unit thereof to be assessed according to the general laws of taxation.
Where an exemption or financial agreement is rescinded the remaining
procedure shall be the same as set forth in paragraph c1 of this subsection.
However, the Township, at its option may choose not to exercise its
right to rescind or terminate, but instead cause an equivalent audit
to be conducted by qualified personnel under the Township's direction.
Where this option is elected, the Township shall utilize the resulting
audit as the basis for billing as if it had been submitted by the
entity. Further, the Township shall have the right to bill the entity
for the cost of conducting an audit. Exercise of this option by the
Township shall not in any way preclude or waive the right of the Township
to terminate an exemption for any other default.
4.
Where an entity or other person fails to comply with any other material
condition of a financial agreement, the Department of Finance shall
notify the Township of the default. The Township shall thereupon take
appropriate steps necessary to declare the exemption and financial
agreement void or take such other legal or equitable action.
[Ord. No. 2015-16]
Notwithstanding anything to the contrary, an exemption shall
be granted for the following projects:
a.
Construction or development of a residential project consisting of
five or more units and not exceeding a period of 30 years;
b.
Construction or development of an industrial project not to exceed
a period of 30 years; and
c.
Construction or development of a commercial project not to exceed
a period of 30 years.
[Ord. No. 2015-16]
During the terms of an exemption, in lieu of any taxes to be
paid on the project improvements, buildings or land, as authorized
by law, an entity shall make payment to the Township of an annual
service charge. The annual service charge required to be paid by the
entity shall be in accordance with the following:
a.
The annual service charge for low and moderate income housing projects
shall not be greater than 15% of the annual gross revenues generated
from the operation of such projects.
b.
The minimum annual service charge for all other housing projects
shall not be less than 10% of the annual gross revenues generated
from the operation of such projects.
c.
The minimum annual service charge for commercial and industrial projects
shall not be less than ten (10%) of the annual gross revenues generated
from the operation of such projects.
d.
Where annual gross revenues cannot be reasonably determined because
of the nature of the development, ownership, use of occupancy of a
project, the annual service charge may be calculated on the basis
of the total project cost or total project unit cost. However, the
annual service charge for low and moderate income housing projects
shall not be greater than 2% of the total project cost or total project
unit cost. For all other housing projects the annual service charge
shall be not less than 2% of total project costs or total project
unit costs. For industrial and commercial projects the annual service
charge shall not be less than two (2%) of total project costs or total
project unit costs.
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However, this section does not commit or require the Township
to approve any application submitted in accordance herewith. In considering
each application, the Township shall consider, in part, the benefits
of the development project for the Township and the impact of any
tax abatement and/or exemption requested on the budget of the Township.
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