[HISTORY: Adopted by the Township Council
of the Township of Washington as indicated in article histories. Amendments
noted where applicable.]
[Adopted 10-8-1998 by Ord. No. 37-1998; amended in its entirety 7-17-2019 by Ord. No. 19-2019]
All previous ordinances adopted by the Township of Washington
related to abatements and exemptions for properties located in areas
in need of rehabilitation are superseded by this article.
The Township hereby determines to utilize the authority granted
under Article VIII, Section 1, Paragraph 6 of the New Jersey Constitution
to establish the eligibility of commercial and industrial structures
for exemptions and abatements permitted by P.L. 1991, c. 441 (N.J.S.A.
40A:21-1 et seq.), throughout areas designated, or to be designated,
as in need of rehabilitation.
This article authorizes the Township of Washington to grant
exemptions and abatements to commence and take effect in the 2019
tax year and thereafter.
A.
Pursuant to N.J.S.A. 40A:21-7, all improvements as defined in N.J.S.A. 40A:213n, to commercial or industrial structures of 2,500 square feet or more, being used as provided in § 229-5B below, shall be exempt from local real property taxes, on the improved portion only, for a period of five years as provided herein if, after proper and timely application has been made, the governing body determines that the improvement meets the intent and criteria established by this article without compromising the equity of the tax structure.
B.
Applicants must apply for tax exemptions on improvements within 30
days of completion of construction of the improvement.
C.
All applications for five-year tax exemptions and abatements under
this article shall be filed with the Clerk of the Township, who shall
forward the application to the Township Tax Collector, who shall deem
the application complete prior to forwarding to the governing body
for consideration. A copy of the application shall also be forwarded
by the Township Clerk to the County Tax Assessor.
D.
No applications will be approved for fit-outs to structures which
were not previously fully completed and occupied.
E.
No applications will be approved for changing a structure from one
construction code use group to another.
F.
"For multiunit projects which are in condominium ownership, the five-year
time period commences for each condominium unit when completed for
its intended purpose. For all other multiunit projects, the project
as a whole must be approved at the onset of the development and not
on a per-unit basis. The agreement for abatement may permit projects
to be built in phases; however, the five-year time period commences
with the occupancy of the first unit in each phase.
[Amended 9-25-2019 by Ord. No. 21-2019]
A.
Pursuant to N.J.S.A. 40A:21-9, to be considered for tax abatement,
a project must contain a minimum of 2,500 square feet of floor space
per use. Applicants shall provide the governing body with an application
setting forth:
(1)
A general description of the project for which abatement is sought;
(2)
A legal description of all real estate necessary for the project;
(3)
Plans and drawings and other documents as may be required by the
Tax Collector, or governing body to demonstrate the structure and
design of the project;
(4)
A description of the number, classes and types of employees to be
employed at the project site within two years of the completion of
the project;
(5)
A statement of the reasons for seeking tax abatement on the project,
why the applicant is choosing Washington Township for their project,
and a description of the benefits to be realized by the applicant
if abatement is granted;
(6)
Estimates of the cost of completing such project;
(7)
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 tax abatement;
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 abatement agreement;
(8)
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. Any lease and/or agreement must contain a clause which shows
the owner of the premises will pass through any benefits achieved
from the proposed abatement;
(9)
A check in the amount of $500 payable to the Township of Washington,
representing a nonrefundable application fee, shall be paid to the
Clerk of the Township of Washington;
(10)
Proof of payment of taxes through the current quarter;
(11)
A certification to be filed with the office of the Township
Clerk, signed by the owner and developer of the property/project which
is the subject of the tax abatement application certifying, under
the penalty of perjury, and later to be placed in the tax abatement
agreement, the following information:
(a)
That the person making the certification has the authority,
or is vested with the authority, to make representations.
(b)
That the actual tradespeople/workforce/labor to be employed
for the construction of all improvements, including all new buildings,
additions to existing structures, and all additional site improvements,
shall be not less than 30% of the total tradespeople/work force/labor
utilized for construction of the project during its entire duration,
which will be defined from the date of the issuance of the first construction
permit through the date of the issuance of a final certificate of
occupancy.
(c)
An acknowledgement that a breach of this provision by the owner/developer
will result in a forfeiture of tax abatement status for said property,
and that the discovery of such breach, during the course of the tax
abatement shall also require a repayment of all abated taxes in full
to the Township of Washington.
(d)
This provision stating that this requirement shall also be binding
upon all successors-in-interest to said property/project which is
the subject of the tax abatement application, and that written notification
of this provision must be provided to all successors-in-title or -
interest to said property, including the repayment requirement upon
discovery of the breach of this provision by the Township.
(12)
Such other pertinent information as the Tax Collector, or governing
body may require.
B.
Tax abatement applications will be considered for approval for uses
such as:
(1)
Electronics and small parts assembly and/or manufacture.
(2)
Scientific or industrial research engineering laboratory, testing
or experimental laboratory or similar establishments for research
or product development.
(3)
Warehouse facilities.
(4)
Administrative activities and offices.
(5)
Light manufacturing of beverages, cosmetics, pharmaceuticals, printing
and publishing, confections, food projects (exclusive of meat and
fish packing, sauerkraut, vinegar, yeast and the rendering or refining
of fats and oils), ceramics, clothing, plastics, electrical goods,
furniture and wood products, hardware, tools, dies, patterns, professional
and scientific instruments, handcraft products, electronics and small
parts assembly and/or manufacture.
(6)
Wholesale business establishment.
(7)
Indoor storage building or warehouse,
(8)
Retail.
(9)
(Reserved)
(10)
Contractor's equipment storage yard or building or rental
of equipment commonly used by contractors.
(11)
(Reserved)
(12)
(Reserved)
(13)
Frozen food lockers and indoor storage.
(14)
(Reserved)
(15)
Milk or soft-drink distribution station or storage house.
(16)
(Reserved)
(17)
The manufacture, compounding, processing, packaging or treatment
of the following previously prepared materials; cork, feathers, cellophane,
ceramics, felt, fur, glass, hair, horn, paper, pharmaceuticals, plastics,
shells, iron and steel, aluminum, leather, plaster, metals, precious
and/or semiprecious stones, wood, yarns, containers or novelties from
paper or natural or synthetic rubber, tobacco, textiles, or textile
products or perfumes.
(18)
The manufacture of musical instruments, toys, novelties and
electrical or electronic devices; home, commercial and industrial
appliances and instruments, including the manufacture of accessory
parts or assemblies; dental and medical equipment; watches and clocks;
optical goods; drafting equipment and canvas products.
(19)
Experimental, research or testing laboratories.
(20)
Carpet or rug cleaning; laundry, dry-cleaning and dyeing plant.
(21)
Wholesaling and distributing activities.
(22)
Light metal processing as follows: cleaning, finishing, grinding,
heat treating, plating, polishing, rustproofing and sharpening, metal
stamping and extrusion of small products; similar metal-working processes.
(23)
Job printing and newspaper or book publishing.
(24)
Baking and food and dairy processing.
(25)
(Reserved)
(26)
(Reserved)
(27)
(Reserved)
(28)
(Reserved)
(29)
Corporate and professional offices.
(30)
Recreational facilities, including, but not limited to, theaters
and bowling alleys.
(31)
Artists' and photographers' studios.
(32)
Motels-hotels and related facilities such as restaurants, meeting
rooms and auditorium spaces and swimming pools.
(33)
(Reserved)
(34)
General service and repair shops, including carpenter, cabinet
making, furniture repair, plumbing or similar shop.
(35)
Office of a builder, carpenter, caterer, cleaner, contractor,
decorator, electrician, furrier, mason, painter, plumber, roofer,
upholsterer and similar nonnuisance business, excluding open storage
of materials and excluding open storage of motor vehicles.
(36)
Veterinary hospital, provided that all animals are kept in a
permanent enclosed structure and are not within 150 feet of any existing
residential use or zone.
(37)
Laboratory, dental and medical.
(38)
Catering establishment.
(39)
Business and instructional school, including trade school.
(40)
Nursing homes, rest homes, homes for the aged, and assisted
living facilities.
(41)
(Reserved)
The governing body of the Township of Washington may enter into
a written agreement with an applicant for the exemption and abatement
of local property taxes. The agreement shall provide for the applicant
to pay the municipality in lieu of full property taxes an amount equal
to a percentage of taxes otherwise due according to anyone, but in
no case a combination, of the following formulas authorized by N.J.S.A.
40A:21-10:
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 2% of the cost of the project or improvement. 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 costs, if any, of land acquisition
and land preparation, provision 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 for 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 purposes 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 computing the revenues and may establish a method of arbitration
by which either the landlord or tenant may dispute the amount of payments
so included in the annual gross revenue. 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 tax 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.
A.
All tax agreements entered into pursuant to this article shall be
in effect for no more than the five full tax years next following
the date of completion of the project. This article shall not preclude
the governing body from entering into a financial agreement for a
tax exemption and/or abatement pursuant to the Long Term Tax Exemption
Law[1] or any other statute authorizing a tax exemption and/or
abatement for a period longer than five years.
[1]
Editor's Note: See N.J.S.A. 40A:20-1 et seq.
B.
As a condition to granting an exemption or abatement, a property
owner shall be required to waive the filing of any tax appeal for
the subject property for the life of the exemption/abatement.
The Clerk of the Township of Washington, pursuant to N.J.S.A.
40A:21-11, shall forward a copy of all tax agreements entered into
pursuant to this article to the Director of the Division of Local
Government Services in the Department of Community affairs within
30 days of the date of execution.
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 for the abatement,
the local property taxes due for all the prior year's subject
to abatement and for the current year shall be payable as if no exemption
has been granted. The Tax Collector of the Township of Washington
shall notify the property owner within 15 days of the date of disqualification
of the amount of taxes due. In the event that 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 and abatement shall
continue and the agreement shall remain in effect.
The Township of Washington hereby determines that an additional
improvement, conversion or construction completed on a property already
granted a previous exemption or abatement pursuant to this article
during the period in which the previous exemption or abatement is
in effect shall qualify for an additional exemption or abatement.
The additional improvement, conversion or construction shall be considered
as separate for purposes of calculating the exemption and abatement,
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 or construction for the purpose
of determining the assessed value of the property for which any additional
abatement is to be subtracted.
No exemption or abatement shall be granted or tax agreement
entered into pursuant to this article for any property for which property
taxes and/or other municipal charges are delinquent or remain unpaid,
or for which penalties for nonpayment of taxes are due.
Every application submitted pursuant to this article shall be
on a form prescribed by the Director of the Division of Taxation and
shall be filed with the Tax Collector of the Township of Washington,
as a condition to approval, within 30 days, including Saturdays and
Sundays, following the completion of the improvements, conversion
or construction.
At the termination of an agreement for tax abatement or exemption
authorized pursuant to this article, the project shall be subject
to all applicable real property taxes, as provided by state laws and
regulations and local ordinances, provided that nothing herein shall
be deemed to prohibit the project or improvement at the termination
of the agreement for tax exemption or abatement from qualifying for
and receiving the full benefits of any other tax preference provided
by law.
[Adopted 7-10-2008 by Ord. No. 32-2008]
In case of the destruction or loss of a tax
title certificate which was issued by the Township of Washington at
a tax sale held in Washington Township, the tax collector of Washington
Township shall issue and execute a new certificate of tax sale in
place of the one which has been destroyed or lost. There shall appear
on the new certificate a statement that it is a duplicate of the original
one which was destroyed or lost and the date of said original certificate
and the date of the tax sale upon which it was issued and the name
and title of the officer who issued same.
The time limit within which the right to redeem
from any such tax sale in which a duplicate certificate has been issued
shall be the same as though the original certificate had not been
lost or destroyed.
The duplicate certificate shall be valid and
effectual to all intents and purposes as though it were the original;
and in the event the original certificate is thereafter found, the
same shall be cancelled forthwith by the proper officer of the Township
of Washington.
See § 80-44.
