[Adopted 6-13-2017 by Ord. No. 2017-004]
The definitions contained in N.J.S.A. 40A:21-3 are incorporated
herein by reference as if set forth at length, except as modified
or supplemented herein. As used in this chapter, words shall have
the meanings as so defined unless a different meaning is expressed.
The issuance of a certificate of occupancy, continuing certificate
of occupancy, final certificate of occupancy for the improvement in
question or other determination of completion by the Borough consistent
with N.J.S.A. 40A:21-3(e).
The Borough 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 new multiple dwellings for five-year tax exemptions and abatements as authorized by N.J.S.A. 40A:21-1, et seq., located on Lot 1 as set forth herein, provided that the property is not ineligible pursuant to the provisions of § 14-14 of this article.
Construction of new multiple dwellings on Lot 1 shall be eligible
for tax exemption or exemption and abatement commencing with completion
of the project. Upon approval in accordance with the provisions of
this article, any such exemption and abatement shall be subject to
the owner and Borough entering into a tax agreement as provided by
N.J.S.A. 40A:21-10. For year one of the exemption period, the improvements
shall be assessed at 0% of their true market value. For year two of
the exemption period, the improvements shall be assessed at 20% of
their true market value. For year three of the exemption period, the
improvements shall be assessed at 40% of their true market value.
For year four of the exemption period, the improvements shall be assessed
at 60% of their true market value. For year five of the exemption
period, the improvements shall be assessed at 80% of their true market
value.
a.
The applicant shall furnish to the municipality all the information
required by N.J.S.A. 40A:21-9. In addition, every applicant 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. The 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 article, provided that the improvement, conversion, alteration
or construction for which the application is made qualifies as an
improvement, a conversion alteration or construction pursuant to the
provisions of this act and the tax agreement, if any. 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.
b.
The Borough Council determines and finds that all new multiple dwellings on Lot 1 in the ANR are eligible for a five-year tax abatement upon filing an application with the assessor in accordance with Subsection a above. No other tax exemption shall be granted unless approved in accordance with law by the Borough Council on an individual basis after review, evaluation and approval of each application for compliance with the terms of this article and the underlying statute, rules and regulations.
c.
The tax agreement for new construction shall provide for the applicant to pay to the Borough in lieu of full property tax payments an amount annually to be computed by the "tax phase-in" basis formula set forth in N.J.S.A. 40A:21-10(c) and as set forth in § 14-3 hereinabove.
d.
The tax agreement for all other improvements shall provide for the
applicant to pay to the Borough 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; the "cost,"
"gross revenue" or "tax phase-in" basis.
Every application for exemption or abatement and every exemption
and abatement granted shall be subject to all the provisions of N.J.S.A.
40A:21-1 et seq., and all rules and regulations issued thereunder.
All tax abatement and exemption agreements shall provide that
the applicant is subject to all federal, state and local laws and
regulations.
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 municipality for determining
equalization for county apportionment and school aid during the term
of the tax abatement agreement covering the property.
If during any tax year prior to the termination 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,
after 30 days' notice and opportunity to cure, 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 notify the property
owner and the 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 sale or other disposal of the
property which it is determined that the new owner of the property
will continue to use the property pursuant to the conditions which
were set forth in the tax abatement or exemption agreement, the exemption
or abatement shall continue.
In the event of default by the applicant, including but not
limited to the failure to make timely tax or in lieu of tax payments
to the municipality, the municipality shall notify the applicant,
in writing, of said default. The applicant shall have 30 days to cure
any default. Following the thirty-day cure period, the municipality
shall have the right to proceed against the property pursuant to the
In Rem Tax Foreclosure Act, N.J.S.A. 54:4-1 et seq. and/or may cancel
the financial agreement upon 30 days' notice to the applicant.
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.
The municipal clerk is hereby authorized and directed to forward
a certified copy of this article to the State of New Jersey Department
of Community Affairs.
No exemption or abatements shall be granted in the following
circumstances:
a.
No exemptions or abatement shall be granted for any property for
which property 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 a 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.
b.
No exemption or abatement shall be granted for any property being
converted from single-family use to a multiple-family use.
c.
No exemption or abatement shall be granted for any property the improvements
to which will increase the density, as that term is defined in N.J.S.A.
40:55D-4, beyond that permitted by the applicable zone regulations
notwithstanding that a variance may have been granted for such increase.
d.
No exemption or abatement shall be granted for any property that
presently constitutes a valid nonconforming use or structure unless
the improvement eliminates the nonconformity.
e.
No exemption or abatement shall be granted unless the improvement
is reasonably estimated by the assessor to result in an increase in
assessed value of the property, if fully taxed, equal to or greater
than $10,000.
The grant or denial of application for a tax exemption or abatement pursuant to this article shall be made in the sound discretion of the Borough Council, unless an application may be processed by the assessor pursuant to § 14-4b. In making its determination Council shall consider the cost and benefits of the improvements to the Borough as a whole including its location, financial impacts, effect on the zone plan and master plan, consistency with the development goals of the Borough, fiscal determinations with respect to the Borough budget and other factors deemed relevant by Council. Appeal of any determination made by the municipality under the terms of this article shall be made to the Somerset County Board of Taxation.
Where consistent with the context in which used in this article,
words importing the singular shall include the plural; words importing
the plural shall include the singular; and words importing one gender
shall include all other genders.
Should any provision of this article be inconsistent with the
provisions of any prior ordinances, the inconsistent provisions of
such prior ordinances are hereby repealed, but only to the extent
of the inconsistencies.
In the event that any provision of this article or the application
thereof to any person or circumstance is declared invalid by a court
of competent jurisdiction, such declaration of invalidity shall not
affect any other provision or application of this article which may
be given effect, and, to realize this intent, the provisions and applications
of this article are declared to be severable.
Captions contained in this article have been inserted only for
the purpose of facilitating reference to the various sections, and
are not intended and shall not be utilized to construe the intent
and meaning of the text of any section.
This article shall take effect immediately upon final adoption
and publication in accordance with the laws of the State of New Jersey.
