[1973 Code § 43-1; Ord. No. 5-25-93; Ord. No. 2003-(O)-26; Ord. No. 2013-35; amended 12-6-2022 by Ord. No. 2022-30]
The Mayor and Council hereby provides for tax abatement on residential
improvements, pursuant to the provisions of N.J.S.A. 40A-21-1 et seq.,
as amended and supplemented, for residential buildings containing
no more than three (3) dwelling units, such that in determining the
value of real property, the municipality shall regard the first $15,000
in assessor's full and true value of improvements for each dwelling
unit primarily and directly affected by the improvement in any dwelling
more than 20 years old, 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.
[Ord. No. 2002-O-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 portion is exempted from taxation
pursuant to this section.
Shall consist of the Town Tax Assessor, Town Tax Collector,
Director of the Kearny Urban Enterprise Zone, Town Chief Financial
Officer, Town Administrator, Mayor and Council Finance Committee Chair.
This Committee shall serve in an advisory capacity only. Its purpose
is to review applications submitted pursuant to this section, and
to make recommendations to the Mayor and Council regarding said application.
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 Law," P.L. 1992,
c. 79 (C. 40A:12A-1 et al.), a "blighted area" as determined pursuant
to the "Blighted Areas Act," P.L. 1949, c. 187 (C. 40:55-21.1 et seq.),
or which has been determined to be in need of rehabilitation pursuant
to P.L. 1975, c. 104 (C. 54:4-3.72 et seq.), P.L. 1977, c. 12 (C.
54:4-3.95 et seq.), or P.L. 1979, c. 233 (C. 54:4-3.121 et seq.).
Shall mean the Tax Assessor of the Town, or his designee,
who is 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 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. 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, which
shall ordinarily mean the date on which the property receives or is
eligible to receive a Certificate of Occupancy, all as determined
by the Town.
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 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 the Tax
Abatement Law.
Shall mean a modernization, rehabilitation, renovation, alteration
or repair which produces a physical change in an existing commercial
or industrial 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. 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 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 act.
Shall mean the improvement or new construction of a commercial
or industrial building or structure for which exemption or abatement
is sought under this section.
[Ord. No. 2002-O-11 § II]
In accordance with Article VIII, Section I, Paragraph 6 of the New Jersey Constitution, the Town hereby authorizes the utilization of tax exemption and abatement and establishes the eligibility of commercial and industrial structures and of improvements thereto for five year tax exemptions to the maximum degree permitted by N.J.S.A. 40A:21-1 et seq. (the "Tax Abatement Law") throughout those portions of the municipality which have been declared to be areas in need of rehabilitation as defined in the Tax Abatement Law.
[Ord. No. 2002-O-11 § III; Ord. No. 2012-22]
a.
Pursuant to N.J.S.A. 40A:21-7, improvements to commercial and industrial
structures which otherwise qualify under this section and the Tax
Abatement Law are eligible for tax exemption for a period of five
years.
b.
Every application for an exemption under this section shall be filed
with the Mayor and Council, and shall be accompanied by a filing fee
of $1,500 to be paid as compensation for legal and related administrative
review by the Town.
c.
No exemption shall be granted unless approved by ordinance of the
Town Council on an individual basis, following review and evaluation
by the Abatement Committee, as heretofore defined. No application
which is incomplete, or fails to meet the requirements of this section,
shall be approved. In such cases, the application shall be rejected
without prejudice to the right of the applicant to submit a conforming
application.
d.
Contents of Application. Applicants for tax exemption and abatement
for improvements to commercial or industrial structures shall provide
the town Council with an application setting forth, at minimum, the
following:
1.
A general description of both the improvements for which exemption
and abatement is sought and the structures to be improved;
2.
A legal description of all real estate necessary for the project;
3.
Plans, drawings and other documents as may be required by the Governing
Body to depict the structure and design of the proposed improvements;
4.
A description of the number, classes and type of employees, both
construction employees and permanent, to be employed at the project
site during the period beginning with construction and ending two
years following the completion of the project;
5.
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 a tax agreement is granted;
6.
A good faith estimate of the cost of completing such project;
7.
A statement showing (i) the real property taxes currently being assessed
on the project site and the structures to be improved; (ii) an estimate
of the assessed value of the proposed improvements and the taxes which
would be generated over the term of the agreement if the improvements
were not afforded tax abatement, and (iii) an estimate of the tax
payments that would be made by the applicant on the project during
the first full year following the termination of the tax agreement;
8.
A description of any lease agreements between the applicant and proposed
users of the structure to be improved, and a history and description
of the users' businesses;
9.
A certification that all municipal taxes, penalties and other charges
levied against the project site and the structures to be improved
are current through the date of the application;
10.
A certification that as of the date of the application, construction
on the proposed project has not commenced and will not commence until
the application is approved by ordinance of the Town Council and an
appropriate agreement executed by the Town and the applicant;
11.
A disclosure of all entities having an ownership interest in either
the project site and improvements or in applicant entity;
12.
A draft of the proposed agreement between the Town and the applicant
conforming with the Tax Abatement Law; and
13.
Such other pertinent information as the Town Council may require.
e.
The decision to approve applications for exemption under this section
shall lie exclusively within the discretion of the Town Council. If
an exemption is approved, the Town in determining value shall regard
the assessor's full and true value of the improvements as not increasing
the value of the property for a period of five years, notwithstanding
that the value of the property to which the improvement is made is
increased thereby. During the exemption period, the assessment on
the property shall not be less than the assessment thereon existing
immediately prior to the improvements, unless there is damage to the
structure through action of the elements sufficient to warrant a reduction.
f.
Upon adoption of an ordinance approving an application for exemption
hereunder, the Governing Body or its designated committee shall prepare
an agreement to be executed by the applicant and the Town setting
forth the terms and conditions of the exemption consistent with the
ordinance approving same.
[Ord. No. 2002-O-11 § IV; Ord. No. 2012-22]
a.
Pursuant to N.J.S.A. 40A:21-8, newly constructed commercial and industrial
structures which otherwise qualify under the Tax Abatement Law and
this section shall be eligible for tax exemption for a period of five
years.
b.
Every application for an exemption under this section shall be filed
with the Mayor and Council, and be accompanied by a filing fee of
$1,500 to be paid as compensation for legal and related administrative
review by the Town.
c.
No exemption shall be granted unless approved by ordinance of the
Town Council on an individual basis, after review and evaluation by
the Abatement Committee, as heretofore defined. No application which
is incomplete, or fails to meet the requirements of this section,
shall be approved. In such cases, the application shall be rejected
without prejudice to the right of the applicant to submit a conforming
application.
d.
Contents of Application. Applicants for tax exemption and abatement
for new construction of commercial or industrial structures shall
provide the Town Council with an application setting forth, at minimum,
the following:
1.
A general description of the project for which exemption and abatement
is sought;
2.
A legal description of all real estate necessary for the project;
3.
Plans, drawings and other documents as may be required by the Governing
Body to depict the structure and design of the project;
4.
A description of the number, classes and type of employees, both
construction employees and permanent, to be employed at the project
site during the period beginning with construction and ending two
years following the completion of the project;
5.
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 a tax agreement is granted;
6.
A good faith estimate of the cost of completing such project;
7.
A statement showing (i) the real property taxes currently being assessed
on the project site; (ii) an estimate of the payments in lieu of taxes
which would be made by the applicant on the project during the term
of the agreement, and (iii) an estimate of the tax payments that would
be made by the applicant on the project during the first full year
following the termination of the tax agreement;
8.
A description of any lease agreements between the applicant and proposed
users of the project, and a history and description of the users'
businesses;
9.
A certification that all municipal taxes, penalties and other charges
levied against the project site are current through the date of the
application;
10.
A certification that as of the date of the application, construction
on the proposed project has not commenced and will not commence until
the application is approved by Ordinance of the Town Council and an
appropriate agreement executed by the Town and the applicant;
11.
A disclosure of all entities having an interest in either the project
site and improvements or in applicant entity.
12.
A draft of the proposed agreement between the Town and the applicant
conforming with the Tax Abatement Law.
13.
Such other pertinent information as the Governing Body may require.
e.
The decision to approve applications for exemption under this section
lies exclusively within the discretion of the Town Council. Where
approval is granted and the exemption allowed, it shall only be granted
and allowed to the degree that the application is consistent with
the provisions of this Ordinance and the Tax Abatement Law, and further
provided that the improvement, conversion, alteration or construction
for which the application is made qualifies as such, pursuant to the
provisions of the Tax Abatement Law and this section.
f.
Upon receipt of a completed and approved application, the Governing
Body or its designated committee shall prepare an agreement to be
executed by the applicant and the Town.
1.
Said agreement shall provide for the applicant to pay to the municipality
annual payments in lieu of full property tax. Said payments shall
consist of an amount equal to a percentage of taxes otherwise due
according to the schedule set forth in N.J.S.A. 40A:21-10c, as follows:
(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 tax 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.
2.
The agreement shall provide that the tax shall be billed and collected
in the same manner as any conventional taxes and any arrearages shall
accrue at the rate of interest charged for delinquent real estate
taxes and shall be subject to foreclosure.
3.
The agreement shall be in effect for no more than the five full tax
years next following the date of completion of the project which has
triggered the agreement.
[Ord. No. 2002-O-11 § V]
An additional improvement or construction completed to a property
already granted an exemption during the period in which the exemption
is in effect, shall be eligible for an additional exemption, just
as if such property had not received previous exemption. The additional
improvement or construction shall be considered as separate for purposes
of calculating the exemption, except that the assessed value of any
previous improvement, conversion or construction shall be added to
the assessed valuation as it was prior to that improvement or construction,
for the purpose of determining the assessed value of the property
from which any additional exemption is to be subtracted.
[Ord. No. 2002-O-11 § VI]
a.
No exemptions shall be granted for any property for which property
taxes, municipal fines or penalties or any other municipal charges
are delinquent or remain unpaid, or for which penalties for nonpayment
are due.
[Ord. No. 2002-O-11 § VII]
This section may be amended by the Governing Body. However,
no amendment to this section shall affect any exemption, abatement,
or tax agreement previously granted and in force prior to the abatement.
[Ord. No. 2002-O-11 § VIII]
a.
The granting of an exemption and tax agreement under this section,
if appropriate, shall be recorded and made a permanent part of the
official tax records of the taxing district, which record shall contain
a notation as to the termination date thereof.
b.
The Town Clerk shall forward a copy of all executed exemption agreements
to the Director of the Division of Local Government Services in the
Department of Community Affairs within 30 days of the date of execution.
c.
The granting of an exemption 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 notation as to
the termination date thereof.
[Ord. No. 2002-O-11 § IX]
a.
Every successful applicant for exemption under this section shall
file the application form prescribed by the Director of the New Jersey
Division of Taxation in the Department of Treasury, with the Tax Assessor,
as a condition to approval, within 30 days, including Saturdays and
Sundays following the completion of the improvement, conversion or
construction in accordance with N.J.S.A. 40A:21-16. Failure to timely
file the prescribed form may result in the denial of the exemption.
b.
On or before October 1 of each year, the Governing Body shall report
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
payments made in lieu of taxes pursuant to tax agreements for construction
of commercial or industrial structures. Said report shall also contain
a calculation of the difference between the total amount of payments
in lieu of taxes and the total amount of real property taxes which
would have been paid had the tax agreements not been in effect.
[Ord. No. 2002-O-11 § X]
a.
At the termination of a tax agreement, a project shall be subject
to all applicable real property taxes as provided by State law, and
regulation and local ordinance. Nothing herein shall prevent a project,
at the termination of an agreement, from qualifying for and receiving
the full benefits of any other tax preferences provided by law.
b.
In the event a property owner subject to a tax agreement ceases to
operate or disposes of the property or fails to meet the conditions
for qualifying for the exemption, the local property taxes due for
all the prior years subject to exemption and for the current year
shall be payable as if no exemption had been granted. The Town Council
shall so notify the property owner and Tax Collector. The Tax Collector
shall forthwith notify the property owner within 15 days of the date
of disqualification of the amount of taxes due. In the event the subject
property has been transferred to a new owner and it is determined
that the new owner will continue to use the property pursuant to the
qualifying conditions, no tax shall be due. The exemption shall continue
and the agreement shall remain in effect.
[Ord. No. 2002-O-11 § XI]
a.
This section shall be in effect for 10 years from the date of adoption.
b.
Pursuant to N.J.S.A. 40A:212-1, this section may be readopted by
action of the Governing Body.
c.
No application for exemption or abatement may be accepted or granted
for the 11th tax year after adoption of this section, unless the Governing
Body has readopted this Ordinance.
d.
All projects which are the subject of tax abatements or exemptions
pursuant to this Ordinance shall be subject to all applicable Federal,
State, and local laws and regulations on pollution control, worker
safety, employment discrimination, zoning, planning and building code
requirements.
e.
For purposes of determining the reduced valuation of the property
to be included in valuation of the Town for determining equalization
for County tax apportionment and school aid during the term of a tax
agreement, the percentage which the payment in lieu of taxes bears
to the full property tax payments (which tax payments would have been
assessed but for the abatement or exemption granted pursuant to this
section), shall be applied to the valuation of the property.
[Ord. No. 2002-O-11 § XII]
The Tax Collector shall include an appropriate notice in the
mailing of the annual property tax bills to each owner of a dwelling
located in an area in which exemptions may be allowed under this section.
