[HISTORY: Adopted by the Township Committee of the Township
of West Deptford 11-1-1979 by Ord.
No. 79-22; amended in its entirety 10-5-2022 by Ord. No. 2022-14. Subsequent amendments noted where applicable.]
The definition of the terms used in this chapter shall be the
same as they appear in N.J.S.A. 40A:21-1 et seq. and therefore are:
A duration of time comprising 365 days, or 366 days when
the included month of February has 29 days, that commences on the
date that an exemption or abatement for a project becomes effective
pursuant to Section 16 of P.L.1991, c.441 (N.J.S.A. 40A:21-16).
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
chapter.
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 Law, P.L.1992, c.79 (N.J.S.A.
40A:12A-1 et seq.), a "blighted area" as determined pursuant to the
Blighted Areas Act, P.L.1949, c.187 (N.J.S.A. 40:55-21.1 et seq.),
or which has been determined to be in need of rehabilitation pursuant
to P.L.1975, c.104 (N.J.S.A. 54:4-3.72 et seq.),[1] P.L.1977, c.12 (N.J.S.A. 54:4-3.95 et seq.),[2] or P.L.1979, c.233 (N.J.S.A. 54:4-3.121 et seq.).[3]
The officer of a taxing district charged with the duty of
assessing real property for the purpose of general taxation.
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 or 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 (N.J.S.A. 13:1D-1
et seq.), the Water Pollution Control Act, P.L.1977, c.74 (N.J.S.A.
58:10A-1 et seq.), the Solid Waste Management Act, P.L.1970, c.39
(N.J.S.A. 13:1E-1 et seq.), and the Spill Compensation and Control
Act, P.L.1976, c.141 (N.J.S.A. 58:10-23.11 et seq.).
Substantially ready for the intended use for which a building
or structure is constructed, improved or converted.
A property created or recorded as a condominium pursuant
to the Condominium Act, P.L. 1969, c. 257 (N.J.S.A. 46:8b-1 et seq.).
The provision of a new dwelling, multiple dwelling or commercial
or industrial structure or the enlargement of the volume of an existing
multiple dwelling or commercial or industrial structure by more than
30%, but shall not mean the conversion of an existing building or
structure to another use.
The alteration or renovation of a nonresidential building
or structure, or hotel, motel, motor hotel, or guest house, in such
manner as to convert the building or structure from its previous use
to use as a dwelling or multiple dwelling.
A housing corporation or association, wherein the holder
of a share or membership interest thereof is entitled to possess and
occupy for dwelling purposes a house, apartment, or other unit of
housing owned by the corporation or association, or to purchase a
unit of housing owned by the corporation or association.
When used with respect to abatements for dwellings or multiple
dwellings, only the cost or fair market value of direct labor and
materials used in improving a multiple dwelling, or of converting
another building or structure to a multiple dwelling, or of constructing
a dwelling or of converting another building or structure to a dwelling,
including any architectural, engineering, and contractors' fees associated
therewith, as the owner of the property shall cause to be certified
to the governing body by an independent and qualified architect, following
the completion of the project.
A building or part of a building used, to be used, or held
for use as a home or residence, including accessory buildings located
on the same premises, together with the land upon which such building
or buildings are erected and which may be necessary for the fair enjoyment
thereof, but shall not mean any building or part of a building, defined
as a "multiple dwelling" pursuant to the Hotel and Multiple Dwelling
Law, P.L. 1967, c. 76 (N.J.S.A. 55:13A-1 et seq.). A dwelling shall
include, as they are separately conveyed to individual owners, individual
residences within a cooperative, if purchased separately by the occupants
thereof, and individual residences within a horizontal property regime
or a condominium, but shall not include general common elements or
common elements of such horizontal property regime or condominium
as defined pursuant to the Horizontal Property Act, P.L. 1963, c.
168 (N.J.S.A. 46:8A-1 et seq.), or at the Condominium Act, P.L. 1969,
c. 157 (N.J.S.A. 46:8B-1 et seq.), or of a cooperative, if the residential
units are owned separately.
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 chapter.
A property submitted to a horizontal property regime pursuant
to the Horizontal Property Act, P.L. 1963, c. 168 (N.J.S.A. 46:8A-1
et seq.).
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 human habitation or work,
and which does not change its permitted use. In the case of a multiple
dwelling, it includes only improvements which affect common areas
or elements, or three or more dwelling units within the multiple dwelling.
In the case of a multiple dwelling or 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 chapter.
A building or structure meeting the definition of "multiple
dwelling" set forth in the Hotel and Multiple Dwelling Law, P.L. 1967,
c, 76 (N.J.S.A. 55:13A-1 et seq.), and means for the purpose of improvement
or construction of the general common elements and common elements
of a condominium, a cooperative, or a horizontal property regime.
The construction, improvement or conversion of a structure
in an area in need of rehabilitation that would qualify for an exemption,
or an exemption and abatement, pursuant to P.L.1991, c.441 (N.J.S.A.
40A:21-1 et seq.).
A.
Exemption from taxation of improvements to dwellings. The municipality shall regard the first $25,000 in the assessor's full and true value of improvements made to each such dwelling unit primarily and directly affected by the improvements in any property more than 20 years old which shall not increase the value of such property for a period of five years, notwithstanding that the value of the dwelling to which said improvements are made has increased, except pursuant to a written agreement between the owner of the property and the Township of West Deptford in accordance with the provisions of § 147-6, and provided further that the payment of taxes with respect to the election of a five-year period of exemption shall be phased in accordance with § 147-7C.
After the full fifth tax year, the value of such improvements
shall be assessed and taxed at 100% otherwise due for the sixth full
tax year and each year thereafter. During the exemption period, the
assessment of the property shall not be less than the assessment thereon
existing immediately prior to the improvements, unless there is damage
to the dwelling through the action of the element sufficient to warrant
a reduction.
B.
New residential dwellings. Exemptions from taxation of a newly constructed
residential dwelling shall not be allowed under this chapter.
Additional improvements completed during the period for which
the improved property is subject to the previously granted exemption
an amount less than the maximum deduction permissible shall be qualified
for additional deduction privileges, under the terms and conditions,
however, that in no tax year shall total deductions for any single
property exceed $25,000.
An exemption from taxation of improvements to commercial or
industrial structures shall be allowed so that in determining the
value of real property, the municipality shall regard up to the assessor's
full value of the improvements as not increasing the value of the
property for a period of five years, notwithstanding that the value
of the property to which the improvements are made is increased thereby.
During the exemption period, the assessment of 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 element sufficient to warrant a reduction.
Exemptions and/or abatements from taxation for construction
of commercial or industrial structures shall be allowed as set forth
in N.J.S.A. 40A:21-8 and in accordance with provisions of N.J.S.A.
40A:21-9 through 40A:21-12.
Applicants for tax exemption and abatement for construction
of commercial or industrial structures shall provide the Township
Committee with an application setting forth the following:
A.
A general description of a project for which exemption and abatement
is sought;
B.
A legal description of all real estate necessary for the project;
C.
Plans, drawings, 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 to be
employed at the project site within two years of completion of the
project;
E.
A statement of the reasons for seeking tax exemption and abatement
on the project, and a description of the benefits to be realized by
the applicant if the tax agreement is granted;
F.
Estimates of the cost of completing such projects;
G.
A statement showing:
(1)
The real property taxes currently being assessed at the project site;
(2)
Estimated tax payments that would be made annually by the applicant
on the project during the period of the agreement; and
(3)
Estimated tax payments that would be made by the applicant on the
project during the first full year following the termination of the
tax agreement.
H.
If the project is a commercial or industrial structure a description
of any lease agreements between the applicant and the proposed users
of the project, and a history and description of the users' businesses;
I.
If the project is a multiple dwelling, a description of the number
and types of dwelling units to be provided, a description of the common
elements or general common elements, and a statement of the proposed
initial rentals or sales prices of the dwelling units according to
the type and of any rental lease or resale restrictions to apply to
the dwelling's units respecting low- or moderate-income housing; and
J.
Such other pertinent information as the governing body may require.
Upon adoption of an ordinance authorizing a tax agreement for
a particular project the Township may enter into a written agreement
with the applicant for the exemption and 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 in amount annually
to be commuted 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 amount equal
to 20% of the cost of the project. For the purposes of the agreement,
"the cost of the project" means only the cost or fair market value
of direct labor and all materials used in the construction, expansion,
or rehabilitation of all buildings, structures, and facilities at
the project site, including the cost, if any, of land acquisition
and land preparation, provisions of access roads, utilities, drainage
facilities, and parking facilities, together with architectural, engineering,
legal surveying, testing and contractors' fees associated with the
project; which the applicant shall cause to be certified and verified
to the governing body by an independent and qualified architect, following
the completion of the project.
B.
Gross revenue basis. The agreement may provide to the applicant to
pay to the municipality in lieu of full property tax payments an amount
annually equal to 15% of the annual gross revenues from the project.
For the purpose of the agreement, "annual gross revenues" means the
total annual gross rental and other income payable to the owner of
the project from the project. If, in any leasing, any real estate
taxes or assessments on property included in the project, any premiums
for fire or other insurance on or concerning property included in
the project, 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 computed revenues that may establish a method of arbitration
by which either the landlord or tenant may dispute the amounts of
payment so included in the annual gross revenue.
C.
Tax phase-in basis. The agreement may provide for the applicant to
pay the municipality in lieu of full property tax payments an amount
equal to a percentage of taxes otherwise due, according to the following
schedule:
(1)
In the first full 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.
At the termination of an agreement for tax exemption or abatement
authorized pursuant to this chapter, the project shall be subject
to all applicable real estate taxes, as provided by state and local
laws and regulations, provided that nothing herein shall be deemed
to prohibit the project or improvement, a determination of an agreement
authorized pursuant to this chapter, to qualify for and receive the
full benefits of any tax preference as provided by law.
A.
All tax agreements entered into by the Township pursuant to N.J.S.A.
40A:21-9 through 40A:21-12 shall be in effect for no more than five
full tax years next following the date of completion of the project.
B.
That percentage which the payment in lieu of taxes for a property
bears to the property tax which would have been paid had an exemption
and abatement not been granted to 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 valuation of the
municipality for determining equalization for county tax apportionment
and school aid during the term of the tax agreements covering the
properties, and at the termination of an agreement for property the
reduced valuation procedure required under this section shall no longer
apply.
C.
Within 30 days after the execution of a tax agreement, a municipality
shall forward a copy of the agreement to the Director of Division
of Local Government Services in the Department of Community Affairs
with the State of New Jersey.
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 Township 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,
or 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.
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 projects subject to tax
agreement, pursuant to N.J.S.A. 40A:21-9 through 40A:21-12, 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, plus any portion of the assessed valuation of the improvement,
conversion or construction which is not allowed an exemption pursuant
to this chapter. Subject to the provisions of this chapter, 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.
No exemption of abatement shall be granted, or tax agreement
entered into, pursuant to this chapter with respect to any property
for which property taxes are delinquent or remain unpaid, or for which
penalties for nonpayment of taxes are due.
A.
No exemption or abatement shall be granted pursuant to this chapter
except upon written application therefor filed with and approved by
the Assessor of the taxing district wherein the improvement, conversion,
alteration or construction is made. Every application shall be on
a form prescribed by the municipality and provided for the use of
claimants by the Township of West Deptford, and shall be filed with
the assessor within 30 days, including Saturdays, Sundays and holidays,
following the completion of the improvement, conversion, alteration
or construction.
B.
Every application for exemption, or exemption and abatement, within
the Township of West Deptford which is filed within the time specified,
shall be approved and allowed by the assessor to the degree that the
application is consistent with the provisions of this chapter or tax
agreement, provided that such improvement, conversion, alternation
or construction for which the application is made qualifies as an
improvement, conversion, alteration or construction pursuant to the
provisions of this chapter and a tax agreement, if any.
C.
The granting of an exemption, or an exemption and abatement, or tax
agreement shall be recorded and made a permanent part of the official
tax records of the taxing district, which records shall contain a
notice of the termination date thereof.
The exemption and abatement of real property taxes provided
pursuant to this chapter shall apply to property taxes levied for
municipal purposes, school purposes, county government purposes, and
for purposes of funding any other property tax exemption or abatement in
effect at the time of the completion of the improvement, conversion,
alteration or construction; provided, however, that any special assessments
levied by the Township prior to or after such time shall not be impacted
by such exemption or abatement.
The Township of West Deptford, pursuant to N.J.S.A. 40A:21-20,
shall include the notice in the mailing of annual property tax bills
to each owner of a dwelling located in the areas which exemptions,
or exemptions and abatements, may be allowed pursuant to this chapter
during the first year following adoption of this chapter.
A.
The Township of West Deptford shall report, on or before October
of each year, to the Director of 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 in the State
of New Jersey the total amount of real property taxes exempted and
the total amount abated within the Township in the current tax year
for each of the following:
(1)
Improvements of dwellings;
(2)
Construction of dwellings (of which no new agreement shall be available
under this chapter);
(3)
Improvements and conversions of multiple dwellings;
(4)
Improvements of commercial or industrial structures;
(5)
Construction of multiple dwellings under tax agreements; and
(6)
Construction of commercial or industrial structures under tax agreements.
B.
In the case of Subsection A(5) and (6) above, the report shall state instead the total amount of payments made in lieu of taxes according to each formula utilized by the Township, 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.
Ordinance Nos. 79-22, 81-21 and 2008-06, and all other amendments
thereto, be and the same are hereby repealed. However, no exemption
or abatement granted pursuant to the foregoing ordinances shall be
affected or terminated by virtue of this repeal, and shall remain
in effect for the time and under the terms granted as if the ordinance
authorizing the exemption or abatement had not been so repealed.
This chapter and the exemption and abatements granted hereunder
shall remain in effect as provided by law; provided, however, that
the Township shall accept no applications nor grant any exemptions
or agreements on or after January 1, 2032.
