[Ord. #10-02, § 1]
This chapter is enacted pursuant to the Five-Year Exemption
and Abatement Law, N.J.S.A. 40A:21-1 et seq.
The Governing Body of the City of Ocean City finds and declares
that there are areas within the City in need of rehabilitation. Through
a comprehensive review process of private investment within both Ocean
City and municipalities across the State, the City finds a tax abatement
program will provide the necessary incentive for rehabilitation within
areas threatened by economic stagnation. It is the intent and purpose
of this chapter to permit the City the greatest flexibility possible
within the constitutional limitations to address problems of weakened
investment and the potential for decline. (Ord. 10-02, § 1
[Ord. #10-02, § 1]
As used in this chapter, the following terms shall have the
following meanings unless the context clearly indicates that a different
meaning is intended:
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 applicable state law.
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, N.J.S.A. 40A:12A-1
et seq. where more than half (1/2) of the housing stock in the delineated
area is at least fifty (50) years old and a program of rehabilitation
may be expected to prevent further deterioration and promote the overall
development of the community.
Shall mean the officer of the City of Ocean City charged
with the duty of assessing real property for the purpose of general
taxation.
Shall mean a structure or part thereof that must be used
for commercial purposes. The Governing Body must determine that said
structure will tend to maintain or provide gainful employment within
the City, assist in the economic development of the City, maintain
or increase the tax base of the City, and maintain or diversify or
expand commerce within the City include any structure, or part thereof,
used or to be used by any business relocated from another qualifying
municipality.
Shall mean substantially ready for the intended use for which
a building or structure is constructed, improved or converted.
Shall mean any room or group of rooms located within a dwelling
forming a single habitable unit with facilities that are used or intended
to be used for living, sleeping, cooking, eating, and sanitation by
one (1) family or household unit.
Shall mean the portion of the Assessor's full and true
value of any improvement or construction not regarded as increasing
the taxable value of a property pursuant to this Chapter and the Five-Year
Exemption and Abatement Law, L. 1991, c. 441.
Shall mean a modernization, rehabilitation, renovation, alteration
or repair that produces a physical change in an existing building
or structure that improves the safety, sanitation, or attractiveness
of the building or structure as a place for human habitation or work.
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 for tax exemption
and abatement
Shall mean an undertaking, by means of repair, reconstruction,
alteration, addition or renovation of existing structures in any area
that has been determined to be in need of rehabilitation as defined
herein.
See definition of Area in Need of Rehabilitation.
[Ord. #10-02, § 1; Ord. #10-10, § 1]
The area in need of rehabilitation encompasses the entire Historic
District, the entire Central Business Zone and the entire Central
Business-1 Zone according to the Ocean City Zoning Map. This delineated
area meets the conditions for determination of need for rehabilitation
pursuant to N.J.S.A. 40A:21-1 et seq.
[Ord. #10-02, § 1; Ord. #10-10, § 2]
a.
The exemption shall only apply to rehabilitation to the following buildings located within the area in need of rehabilitation as defined by subsection 31-1.4.
1.
Residential Dwellings. The City determines to provide for the exemption
from taxation the improvements to all residential dwellings in the
Historic District. If the improvement results in a change in status
from a key or contributing to a noncontributing structure as determined
by the Historic Preservation Commission, it is not eligible to receive
the abatement.
2.
Commercial Structures in the Historic District. The City determines
to provide for the exemption from taxation the improvements to commercial
and mixed use structures in the Historic District.
3.
Commercial Structures in the Central Business and Central Business-1 Zones. The City determines to provide for the exemption from taxation the improvements to commercial and mixed use structures in the Central Business and Central Business-I Zones. The exemption for mixed use structures is limited to those structures meeting the definition of mixed use in subsection 25-205.1.2 and subsection 25-205.1A.2, "Permitted Uses." With any improvement or construction in the Central Business and Central Business-1 Zones, the total square footage to be used for commercial purposes on the site cannot decrease.
b.
The exemption shall be granted for a five-year period, during which
time the taxable value of the property shall not increase by the value
of the improvement, 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 improvement
unless there is damage to the structure through action of the elements
sufficient to warrant a reduction.
[Ord. #10-02, § 1]
The following procedure shall govern applications for tax exemptions
for improvements within the City of Ocean City:
a.
An application for exemption for improvements set forth in this Chapter
shall be made to the Assessor, with a copy provided to the Mayor and
the City Clerk. Every application for exemption shall be filed with
the Assessor within thirty (30) calendar days following the completion
of the improvement.
b.
Every properly completed final application for exemption shall be
evaluated for approval by the Assessor within thirty (30) days of
filing. Based on the provisions of N.J.S.A. 40A:21-1 et seq., the
Assessor shall notify the Governing Body in writing of the approval
determination. Upon receipt of the written approval from the Assessor
the appropriate City officials shall then proceed to execute the tax
abatement agreement previously authorized by the specific ordinance
adopted as part of the preliminary application approval process. The
applicant shall be required to sign this tax abatement agreement prior
to the City signatories.
c.
The granting of exemption shall be recorded and made part of the
official tax records of the taxing district, which records shall contain
a notice of the termination date thereof.
d.
Within thirty (30) days after the execution of a tax agreement, the
City Clerk shall forward a copy of the agreement to the Director of
the Division of Local Government Services in the Department of Community
Affairs.
[Ord. #10-02, § 1]
Applicants for tax exemption for improvements of commercial
structures or residential dwellings shall provide the following information:
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 type of employees to be
employed at the project site within two (2) years of completion of
the project, if applicable.
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 a tax agreement is granted.
f.
Estimates of the cost of completing such project.
g.
A statement showing the real property taxes currently being assessed
at the project site; estimated tax payments that would be made annually
by the applicant on the project during the period of the agreement;
and 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 structure, descriptions of any lease
agreements between the applicant and 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
type and of any rental lease or resale restrictions to apply to the
dwellings units respecting low- or moderate-income housing.
j.
Such other pertinent information as the governing body may require.
[Ord. #10-02, § 1]
The Governing Body may enter into a written agreement with the
applicant for the exemption and abatement of real property taxes upon
the adoption of an ordinance authorizing a tax agreement for a particular
project. The agreement shall provide for the applicant to pay to the
City in lieu of full property tax payments an amount annually based
on the tax phase-in approach, which shall be an amount equal to a
percentage of taxes otherwise due according to the following schedule:
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 twenty (20%) percent
of taxes otherwise due.
c.
In the third tax year, an amount not less than forty (40%) percent
of taxes otherwise due.
d.
In the fourth tax year, an amount not less than sixty (60%) percent
of taxes otherwise due.
e.
In the fifth tax year, an amount not less than eighty (80%) percent
of taxes otherwise due.
[Ord. #10-02, § 1]
The Assessor shall determine, on October 1 of the year following
the date of the completion of an improvement 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, minus
the amount of the abatement, if any, allowed pursuant to this Chapter,
plus any portion of the assessed valuation of the improvement, conversion
or construction 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 (5) full
tax years subsequent to the original determination by the Assessor.
[Ord. #10-02, § 1]
a.
All tax agreements entered into by the City pursuant to N.J.S.A.
40A:21-9 through 40A:21-12 shall be in effect for no more than the
five (5) full tax years next following the date of completion of the
project.
b.
All projects subject to a tax agreement as provided herein shall
be subject to all applicable Federal, State and local laws and regulations
on pollution control, worker safety, discrimination in employment,
housing provisions, zoning, planning and building code requirements.
c.
That percentage which the payment in lieu of taxes for a property
bears to the property tax 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 tax apportionment and school
aid during the term of the tax agreements covering the properties,
and at the termination of an agreement for a property, the reduced
valuation procedure required under this section shall no longer apply.
[Ord. #10-02, § 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 Assessor of the City shall notify the property owner
and Tax Collector forthwith, and the Tax Collector shall, within fifteen
(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 the abatement shall
continue, and the agreement shall remain in effect.
b.
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; but nothing herein shall prohibit
a project, at the termination of an agreement, from qualifying for
and receiving the full benefits of any other tax preferences provided
by law.
[Ord. #10-02, § 1]
This Chapter provides that an additional improvement completed
on a property granted a previous exemption or abatement pursuant to
this Chapter 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 considered as separate for the
purposes of calculating exemptions and abatements, pursuant to this
Chapter, 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, conversion, alteration or construction
for the purpose of determining the assessed valuation of the property
from which any additional abatement is to be subtracted.
[Ord. #10-02, § 1]
No exemption or 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. For purposes of this section,
the existence of a tax installment agreement shall not be considered.
All taxes, penalties and interest due and owing must be paid in full
upon application.
[Ord. #10-02, § 1]
The City Tax Collector shall include a notice describing the
exemption and abatement program provided for by this Chapter and the
application procedure therefore in the mailing of annual property
tax bills to each owner of property located in the area in need of
rehabilitation as defined by this Chapter.
