[Ord. No. 2006-03]
[Ord. No. 2006-03, § 1]
The township may enter into agreements with applicants for tax abatement on residential, commercial or industrial construction projects located throughout the township on the lots set forth in Section 22-5 and on any additional lot(s) the township committee may designate in the future, the "qualified zones," which provide for an abatement from real property taxation on projects for a period of up to five years. During such five year period, the tax agreements shall provide for payments to the Township of Lafayette in lieu of full property taxes, which payments shall be calculated as set forth in Section 22-4 of this chapter. Applications for abatement from taxation may be filed to take initial effect for the first full tax year commencing after the tax year in which the ordinance is adopted and for tax years thereafter as set forth in P.L. 1991, c. 441 (N.J.S.A. 40A:21-1 et seq.), but no application for abatement shall be filed for abatements to take initial effect for the 11th full tax year or any tax year occurring thereafter unless an ordinance readopting this chapter by the Governing Body of the Township of Lafayette is passed.
[Ord. No. 2006-03, § 2]
Applications for tax abatement for new construction projects
and other construction.
To be considered for tax abatement for new construction or other
construction as defined herein of residential, commercial or industrial
structures pursuant to N.J.S.A. 40A:21-9, a project must contain a
minimum of 600 square feet of floor space per use. All such applications
regarding new construction and other construction must be filed with
the tax assessor, with a copy provided to the Governing Body. Every
application must be filed with the assessor within 30 days, including
Saturdays and Sundays, following completion of the construction. The
application must be on a form prescribed by the Director of the Division
of Taxation in the Department of Treasury, and must set forth:
a.
A general description of this project for which abatement is sought.
b.
A legal description of all real estate necessary for the project.
c.
Plans and drawings, including a site layout on the total lot area,
and other documents as may be required by the Governing Body to demonstrate
the structure and design of the project.
d.
A description of the number, classes and types of employees and average
estimated wages and salaries by employee class to be employed at the
project site within two years of the completion of the project.
e.
A statement of the reasons for seeking tax abatement on the project
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 project.
g.
A statement showing the real property taxes currently assessed at
the project site; estimated tax payments that would be made annually
by the applicant on the project during the period of tax abatement,
and estimated tax payments that would be made by the applicant on
the project during the first year following the termination of the
tax abatement agreement.
h.
A description of any lease agreements between the applicant and proposed
users of the project and a history and description of the user's business.
i.
Proof of payment of taxes through the current quarter.
j.
Other pertinent data regarding the relationship, agreements and status
of other properties owned by the applicant within the Township of
Lafayette.
k.
Such other pertinent information as the Governing Body may require.
[Ord. No. 2006-03, § 3]
Applications for tax abatement will be considered for uses such
as:
a.
Light industrial, light manufacturing and indoor warehousing facilities
which are nonpolluting and nonnoxious.
b.
Scientific or industrial research engineering laboratory, testing
or experimental laboratory or similar establishment for research or
product development.
c.
Administrative offices.
d.
Wholesale distributorships.
e.
Experimental, research testing, dental or medical laboratories.
f.
Senior housing, group homes or such other housing as the Lafayette
Land Use Board may permit.
g.
Corporate and professional offices.
h.
General service and repair shops, including carpenter, cabinet making
or furniture repair.
i.
Office of a builder, carpenter, cleaner, contractor, decorator, electrician,
mason, painter, plumber, roofer, upholsterer and similar nonnuisance
businesses, excluding open storage of materials and excluding open
storage of motor vehicles.
j.
Businesses and instructional school, including trade school.
k.
Nursing homes, homes for the aged and assisted living facilities.
l.
General commercial establishments permitted by zoning for the qualified
zones.
m.
Accessory uses on the same lot with and customarily incidental to
any of the above permitted uses.
[Ord. No. 2006-03, § 4]
a.
Applications for Particular Project or Projects. Upon adoption of
an ordinance authorizing an agreement or agreements for particular
project or projects, the Governing Body may enter into written agreements
with the applicants for the abatement of local real property taxes.
Before the municipality enters into any such tax agreements, the municipality
must adopt an ordinance authorizing the execution of each such agreement.
Such tax agreements may only be authorized by ordinance and not by
resolution.
b.
Payment In Lieu of Taxation. An agreement shall provide for the applicant
to pay to the municipality in lieu of full property tax payments an
amount annually to be computed by the following formula:
1.
Tax phase-in basis: The applicant must pay to the municipality in
lieu of full property tax payments an amount equal to a percentage
of taxes otherwise due, according to the following formula:
(a)
In the first full tax year after completion, no payment in lieu of
taxes otherwise due.
(b)
In the second tax year, an amount not less than 20% of taxes otherwise
due.
(c)
In the third year, an amount not less than 40% of taxes otherwise
due.
(d)
In the fourth tax year, an amount not less than 60% of taxes otherwise
due.
(e)
In the fifth tax year, an amount not less than 80% of taxes otherwise
due.
c.
Duration. All tax agreements entered into by virtue of this chapter
shall be in effect for no more than five full tax years next following
the date of completion of the project. Within 30 days after the execution
of a tax agreement, the township shall forward a copy of the agreement
to the Director of the Division of Local Government Services in the
Department of Community Affairs.
d.
Delinquencies. No exemption or abatement shall be granted or tax
agreement entered into with respect to any property for which property
taxes are delinquent or remain unpaid, or for which penalties for
nonpayment of taxes are due.
e.
Disqualification. 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 condition 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 abatement
had been granted. The Governing Body shall notify the property owner
and tax collector and the tax collector shall within 15 days notify
the owner of the property of the amount of taxes due. With respect
to the disposal of 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
abatement shall continue and the agreement shall remain in effect.
f.
Termination. At the termination of the tax agreement, a project shall
be subject to all applicable real property taxes.
[Ord. No. 2006-03, § 5]
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Block 8, Lot 29
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Block 7, Lot 19
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87 & 89 Route 15
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109 Route 15
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Estate of John Pumleye
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Jeremiah Loughman
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Block 8, Lot 19.01
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Block 14, Lot 60
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64 Route 15
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44 Route 15
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Steve Maddox c/o Kinney
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Lafayette Bible Church c/o Kinney
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[Ord. No. 2006-03, § 6]
As used in this chapter, the following terms shall have the
meanings indicated:
Shall mean the officer of the Township of Lafayette 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 projects, 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.
Shall mean substantially ready for the intended use for which
a building or structure is constructed.
Shall mean the development of a 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.
[Ord. No. 2017-08]
[Ord. No. 2017-08 Preamble]
Pursuant N.J.S.A. 40A:21-1 et seq., a municipality having within
its boundaries areas in need of rehabilitation or redevelopment may,
by ordinance, provide for the exemption and/or abatement of real property
taxes to encourage and provide incentives for the construction, redevelopment
and rehabilitation of industrial and commercial structures.
The Township of Lafayette desires to provide for real estate tax incentives for commercial and industrial structures within the Light Industrial (LI), Highway Commercial (HC) and Village Commercial (VC) Zones as defined in Chapter 13 (Zoning).
N.J.S.A. 40A:21-1 et seq. provides for the exemption of assessments
for five years following completion of a project as defined in the
statute and the exemption or abatement of property taxes for new construction
for a five year period following completion of the project as defined
in the statute.
[Ord. No. 2017-08 § 1]
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 chapter,
words shall have the meanings as so defined unless a different meaning
is expressed.
[Ord. No. 2017-08 § 2]
The Township hereby authorizes the utilization of tax exemption
and abatement in accordance with Article VIII, Section I, Paragraph
6, of the New Jersey Constitution and establishes the eligibility
of commercial and industrial structures for five year tax exemptions
and abatements as authorized by N.J.S.A. 40A:21-1 et seq., throughout
the entire Township, but only to the extent set forth herein.
[Ord. No. 2017-08 § 3]
a.
Construction of new commercial and industrial structures shall be
eligible for tax exemption or exemption and abatement commencing with
completion of the project. Any such exemption or exemption and abatement
shall be subject to the owner and Township entering into a tax agreement
as provided by N.J.S.A. 40A:21-10.
b.
The applicant shall furnish to the Township an application setting
forth the information required by N.J.S.A. 40A:21-9. The Township
Committee shall thereafter adopt an ordinance authorizing a tax agreement
for a particular project. No tax exemption or exemption and abatement
shall be granted unless such tax agreement is approved by resolution
of the Township Committee on an individual basis after review, evaluation
and approval of such tax agreement for compliance with the terms of
the ordinance and the underlying statute, rules and regulations.
c.
The tax agreement shall provide for the applicant to pay to the Township,
in lieu of full property tax payments, an amount annually to be computed
by one, but in no case a combination, of the three formulas set forth
in N.J.S.A. 40A:21-10, namely the "Cost," "Gross Revenue," or "Tax
Phase-In" basis.
d.
Within 30 days after the execution of any such 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.
e.
In addition, every applicant shall file the application form prescribed
by the Director of the New Jersey Division of Taxation in the Department
of the Treasury, with the Tax Assessor, as a condition of approval
within 30 days, including Saturdays and Sundays, following the completion
of the improvement. Every application for exemption or exemption and
abatement so filed shall be approved and allowed by the Assessor to
the degree that the application is consistent with the provisions
of this Ordinance, provided that the improvement for which the application
is made qualifies as such pursuant to the provisions of this Ordinance
and the specific tax agreement. The granting of an exemption or exemption
and abatement and tax agreement, if appropriate, shall be recorded
and made a permanent part of the official tax records of the taxing
district, which record shall contain a notice of termination date
thereof.
[Ord. No. 2017-08 § 4]
An additional improvement or construction, completed on a property
granted a previous exemption or abatement during the period in which
such previous exemption or abatement is in effect, shall be qualified
for an exemption and/or abatement just as if such property had not
received a previous exemption or abatement. In such case, the additional
improvement or construction shall be considered as separate for the
purposes of calculating exemptions and abatements, except that the
assessed valuation of any previous improvement or construction shall
be added to the assessed valuation as it was prior to that improvement
or construction for the purpose of determining the assessed valuation
of the property from which any additional abatement is to be subtracted.
[Ord. No. 2017-08 § 5]
Every application for exemption or abatement and every exemption
and abatement granted shall be subject to all of the provisions of
N.J.S.A. 40A:21-1 et seq. and all rules and regulations issued thereunder.
[Ord. No. 2017-08 § 6]
All tax abatement and exemption agreements shall provide that
the applicant is subject to all Federal, State and local laws and
regulations.
[Ord. No. 2017-08 § 7]
The percentage which the payment in lieu of taxes bears to the
property taxes which would have been paid had an abatement not been
granted for the property under the agreement shall be applied to the
valuation of the property to determine the reduced valuation of the
property to be included in the valuation of the Township for determining
equalization for count apportionment and school aid during the term
of the tax abatement agreement covering the property.
[Ord. No. 2017-08 § 8]
If, during any tax year period to the determination of the tax
abatement or exemption agreement, the applicant ceases to operate
or disposes of the property or otherwise fails to meet the conditions
of eligibility, the tax otherwise due if there had been no abatement
or exemption shall become due and payable by the property owner. The
Tax Assessor shall, within 15 days thereof, notify the owner of the
property of the amount of taxes due. However, with respect to the
sale or other disposal of the property, where it is determined that
the new owner of the property will continue to use the property pursuant
to the conditions which qualified the property, no tax shall be due,
the exemption and the abatement shall continue; and the agreement
shall remain in effect.
[Ord. No. 2017-08 § 9]
In the event of default by the applicant, including but not
limited to the failure to make timely tax or in lieu payments to the
Township, the Township Tax Assessor shall notify the applicant, in
writing, of said default. The applicant shall have 30 days to cure
any default. Following the 30 day cure period, the Township shall
have the right to proceed against the property pursuant to the In
Rem Tax Foreclosure Action, N.J.S.A. 54:4-1 et seq. and/or may cancel
the tax agreement upon 30 days' notice to the applicant.
[Ord. No. 2017-08 § 10]
At the termination of a tax abatement or exemption agreement,
a project shall be subject to all applicable real property taxes as
provided by State law and local ordinance.
[Ord. No. 2017-08 § 11]
The Township Clerk is hereby authorized and directed to forward
a certified copy of this Article (Ordinance No. 2017-08) to the State
of New Jersey Department of Community Affairs.
[Ord. No. 2017-08 § 12]
No exemptions shall be granted for any property for which taxes
or any other municipal charges are delinquent or remain unpaid or
for which penalties for nonpayment are due for a period of at least
one year, or for any property not being used in conformance with local,
State or Federal ordinance, regulation or statute. In addition, one
and two family structures which contain home-based businesses are
ineligible for the tax exemption or abatement programs described herein.
[Ord. No. 2017-08 § 13]
Appeal of any determination made by the Township under the terms
of this Article shall be made to the Sussex County Board of Taxation,
unless a direct appeal to the New Jersey Tax Court is authorized by
law.
