[Adopted 8-11-2015 by Ord. No. MC 3547]
The Legislature of the State of New Jersey has determined that
various statutes authorized by Article VIII, Section 1, Paragraph
6 of the New Jersey Constitution permitting municipalities to grant
for periods of five years exemptions or abatements, or both, from
taxation in areas in need of rehabilitation have proven to be effective
in promoting construction and rehabilitation of residential and commercial
and industrial structures in areas threatened with economic and social
decline. In response, the Legislature adopted Chapter 441 of the Laws
of 1991 (N.J.S.A. 40A:21-1 et seq.) (the "Act") to consolidate and
make more coherent the most useful features of those statutes. The
Township of Irvington makes known its intention to utilize the tax
exemption provisions authorized by Article VIII, Section 1, Paragraph
6 of the New Jersey Constitution, as enacted through the provisions
of the Act, to authorize five-year exemptions for improvements to
dwellings, construction of new dwellings, improvements to or conversion
of structures to multiple dwellings and improvements to and construction
of commercial and industrial structures.
As used in this article, the following terms shall have the
meanings indicated:
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 for a project becomes effective pursuant to Section 16 of the Act and § 577-21 of this article.
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.),[1] 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.), P.L. 1977,
c.12 (N.J.S.A. 54:4-3.95 et seq.). or P.L. 1979, c.233 (N.J.S.A. 54:4-3.121
et seq.).[2]
The officer of the Township charged with the duty of assessing
real property for the purpose of general taxation.
The business administrator of the Township.
The chief financial or fiscal officer of the Township.
The municipal clerk of the Township.
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 Township Council determines will tend to maintain or provide
gainful employment within the Township, 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.
"Commercial or industrial structures" 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, as determined
by the Assessor.
A property created or recorded as a condominium pursuant
to the "New Jersey 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 guesthouse, 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.
The person appointed by the Mayor of the Township to serve
as the development officer pursuant to this article.
A building or part of a building used, to be used or held
for use as a one- or two-family 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 a 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 the
"Condominium Act," P.L. 1969, c.257 (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 the Act.
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-l
et seq.).
A modernization, rehabilitation, renovation, alteration or
repair which produces 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 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 exemption pursuant to the Act.
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 the ''general common elements" and
"common elements" of a condominium, a cooperative, or a horizontal
property regime.
The construction of commercial and industrial structures
and multiple dwellings.
An agreement for exemption for projects and the payments
to be made in lieu of taxes as required pursuant to the terms of this
article.
The tax collector of the Township.
August 31, 2025, except as may be extended under § 577-22.
The Township of Irvington, in the County of Essex, State
of New Jersey.
The legal counsel for the Township.
The municipal council of the Township.
Improvements to dwellings, newly constructed dwellings, conversion of nonresidential structures to dwellings, including unutilized public buildings to one- and two-family dwellings, cooperatives, if purchased separately by the occupant thereof, and individual residences within a horizontal property regime or a condominium located within the Township are eligible to receive a five-year exemption, as provided in § 577-12, upon meeting the following qualifications:
A.
Exemption of improvements to dwellings. The improvements made to a dwelling shall be granted an exemption from taxation if they meet the criteria established in § 577-11 of this article. In determining the value of the real property, the Township shall regard the first $25,000 in 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 improvements are made is increased as a result of the improvements. The assessment on any property granted an exemption pursuant to this § 577-12 shall not be less than the assessment on the property existing immediately prior to the improvements, except where there is damage to the structure through action of the elements sufficient to warrant a reduction.
B.
Exemption of new dwellings and conversions. An exemption shall be granted for a portion of the assessed value of the construction of new dwellings and conversions, including unutilized public buildings, to dwelling use if they meet the criteria established in § 577-11 of this article. In determining the value of the real property, the Township shall regard 30% of the Assessor's full and true value of the dwelling constructed, or conversion alterations made, as not increasing the value of the property for a total of five years, notwithstanding that the value of the property upon which the construction or conversion occurs is increased as a result.
Improvements to multiple dwellings and conversions, including unutilized public buildings, to multiple dwelling use, which are included in the area in need of rehabilitation are eligible to receive a five-year exemption as provided in § 577-14 of this article upon meeting the following qualifications:
A.
All real estate taxes must be current;
B.
The applicant must provide a certificate of occupancy or any other
permit or approval required by the Township; and
C.
The construction of any improvements to, and the operation of, any
multiple dwelling must be in compliance with any and all applicable
federal, state and local health and safety codes and regulations,
An exemption shall be granted from taxation of improvements made to multiple dwellings and conversions, including unutilized public buildings, to multiple dwelling use, if they meet the criteria established in § 577-13 of this article. In determining the value of the real property, the Township shall regard the Assessor's full and true value of the improvements or conversion alterations 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 or conversion alterations are made is increased as a result of the improvements. The assessment on any property granted an exemption pursuant to this § 577-14 shall not be less than the assessment on the property existing immediately prior to the improvements or conversion alterations, except where there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction.
Improvements to commercial and industrial structures that are
located within the area in need of rehabilitation are eligible to
receive a five-year exemption as provided herein upon meeting the
following qualifications:
A.
All real estate taxes must be current;
B.
The applicant must provide a certificate of occupancy or any other
permit or approval required by the Township; and
C.
The construction and the operation of the commercial and industrial
structure, must be in compliance with any and all applicable federal,
state and local health and safety codes and regulations.
An exemption shall be granted from taxation of improvements made to commercial and industrial structures if they meet the criteria established in § 577-15 of this article. In determining the value of the real property, the Township 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 improvements are made is increased. The assessment on any property granted an exemption pursuant to this § 577-16 shall not be less than the assessment on the property existing immediately prior to the improvements or conversion, except where there is damage to the structure through action of the elements sufficient to warrant a reduction.
No exemption shall be granted pursuant to under §§ 577-12, 577-14, and 577-16 of this article except upon written application therefor filed with and approved by the Assessor. Every application shall be on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury, and provided for the use of parties seeking exemptions, or exemptions by the governing body of the Township. All applications pursuant to §§ 577-12, 577-14, and 577-16 of this article shall be filed with the Assessor within 30 days, including Saturdays and Sundays, following the completion of the improvement, conversion alteration or construction. Every such application for exemption which is filed within the time specified and prior to the termination date shall be approved and allowed by the Assessor provided that the application is consistent with the provisions of this article, as applicable, and 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 Act and this article.
A.
The Assessor shall approve or deny applications for exemptions pursuant to §§ 577-12, 577-14, and 577-16 of this article within 45 days of receipt of a timely and completed application. Incomplete applications shall be returned to the applicant with notice of any deficiencies and/or missing information or documentation. Any such application that is returned to the applicant for correction or the provision of further information must be resubmitted to the Assessor within 20 days of receipt by the applicant. Returned applications are deemed to be received by the applicant within three days of mailing. Any returned application that is not resubmitted to the Assessor within the required period shall be deemed denied.
The Township Council may approve and enter into tax agreements for the exemption from taxation for projects that are located in the area in need of rehabilitation pursuant to §§ 577-19, 577-20, and 577-21 upon meeting the following qualifications:
A.
All real estate taxes must be current;
B.
The applicant must provide permits or approvals required by the Township;
C.
The construction and the operation of the project must be in compliance
with any and all applicable federal, state and local health and safety
codes and regulations; and
D.
An approved redevelopment agreement between the property owner and
the Township.
In addition to the application form provided by the Director
of the Division of Taxation, applications for tax exemptions for projects
shall include the following:
A.
A general description of the project for which an exemption is sought;
B.
A legal description of all real estate necessary for the project;
C.
Plans, drawings and other documents 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 years of completion of the
project;
E.
A statement of the reasons for seeking tax exemption on the project,
and a description of the benefits to be realized by the applicant
if an exemption is granted;
F.
Estimates of the cost of constructing the project;
G.
A statement indicating which of the formulas the applicant proposes
to be used to calculate the payments in lieu of full property taxes,
as authorized by Section 10 of the Act (N.J.S.A. 40A:21-10);
H.
A statement showing 1) the real property taxes currently being assessed
at the project site; 2) estimated payments that would be made annually
by the applicant on the project during the period of the tax 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;
I.
If the project is a commercial or industrial structure, a description
of any and all lease agreements between the applicant and proposed
users of the project, and a history and description of the users'
businesses;
J.
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 any
dwelling units respecting low- or moderate-income housing;
K.
A schedule of the estimated completion date of the project; and
L.
Such other pertinent information as may be required by the Township,
Applications for tax agreements for exemption of projects shall
be filed prior to commencement of the project and prior to the termination
date and shall be approved or denied by ordinance of the Township
Council. Prior to consideration by the Township Council for approval,
all applications shall be reviewed by the following Township officials:
A.
Development review. Upon receipt of an application, the Development
Officer shall conduct a complete review of the proposed project and/or
subject property. The review shall take into consideration the property
and appropriateness and adequacy of the description(s), plan(s) and
estimate(s) submitted, and the degree to which the project and/or
property complies with the Township s development goals as expressed
in the master plan, zoning ordinance, redevelopment plans and rehabilitation
plans, as applicable. Upon completion of the review, the Development
Officer shall submit a recommendation for approval or disapproval
of the application to the Township Attorney. The recommendation shall
include any changes to the project and/or subject property that may
be deemed necessary by the Development Officer, as well as any analysis
performed or relied upon.
B.
Financial review.
(1)
Upon receipt of an application, the Chief Financial Officer shall
conduct a financial review of the application including a cost and
benefit analysis of the proposed project and/or improvements subject
to the application.
(2)
Upon completion of the review, the Chief Financial Officer shall
submit a recommendation for approval or disapproval of the application
to the Township Attorney. The recommendation shall include any analysis
performed or relied upon by the Chief Financial Officer.
C.
Legal review.
(1)
Upon receipt of an application, the Township Attorney or other designated
counsel shall conduct a review as to the form and legality of the
application. In addition, the Township Attorney shall obtain written
certifications from Township officials as necessary to substantiate
the information contained in an application.
(2)
The Township Attorney shall make a determination as to the propriety
of all application. Applications shall be deemed proper in those cases
where they are presented in the proper form, satisfy the requirements
of this article and all other applicable statutes and ordinances,
and for which no delinquency has been reported regarding any payments
due to the 'Township as certified by the Tax Collector or other municipal
officials.
(3)
Where an application is deemed to be complete and conforming pursuant
to the requirements of this article, the Township Attorney shall prepare
an ordinance in the form necessary to authorize the exemption and
shall prepare the form of the tax agreement. All tax agreements shall
be in the form filed with the Clerk at the time of adoption of this
article. The ordinance shall be signed by the Township Attorney as
to form and legality and submitted, together with the form of the
tax agreement, the full application, and the recommendation of the
Chief Financial Officer and the Development Officer, to the Business
Administrator for his/her consideration.
(4)
In those cases where an application is deemed improper, the Township
Attorney shall prepare correspondence outlining those aspects of the
application found to be deficient and shall forward that correspondence,
together with the application and the recommendations of the Chief
Financial Officer and the Development Officer to the Business Administrator
for consideration.
D.
Business Administrator review.
(1)
Upon receipt of an application and the recommendation of the Township
Attorney, the Business Administrator shall determine the action to
be taken with regard to the application. When the application has
been deemed proper by the Township Attorney, the Business Administrator
shall determine whether to recommend the adoption of the authorizing
ordinance and its attachments by the Township Council, or to recommend
the denial of the application as not being in the best interests of
the Township. Where the application has been deemed improper by the
Township Attorney, the Business Administrator shall determine whether
the deficiencies can be corrected, and if so may direct the applicant
and/or the appropriate municipal official as to the actions required.
If the deficiencies cannot be corrected or if the application is deemed
not in the best interests of the Township, the Business Administrator
may recommend the denial of the application.
(2)
In those cases where the Business Administrator affords the applicant the opportunity to correct certain deficiencies, the application may be reconsidered after submission of the corrected application to the Assessor, after which the process outlined in this § 577-20D shall be conducted again.
(3)
In those cases where the Business Administrator has recommended the
denial of an application without condition and where such formal action
to deny an application has been taken by the Township Council, the
application may only be reconsidered by re-application to the Assessor,
which application shall be treated in its entirety as a new application.
(4)
Notwithstanding any provision to the contrary herein, the recommendation
of the Business Administrator to the Township Council, whether for
approval or denial, shall occur within 120 calendar days after the
date of the receipt of a complete application.
E.
Tax agreements.
(1)
Form of tax agreement.
(a)
The tax agreement shall include the identification of the affected
property by the tax map designation and street address, the nature
and scope of the structure to be constructed thereon, the formula
for computing payments in lieu of taxes, the duration of the agreement
and the grounds for termination. The tax agreement shall require timely
payment of any and all municipal taxes, fees and charges arising from
or related to a property granted an exemption.
(b)
The tax agreement shall in all cases further provide that any
change made in the ownership of the project or which would materially
change the terms of the tax agreement shall be deemed a material breach
of the agreement, which shall be cause for termination of the tax
agreement. The tax agreement shall provide that the failure to make
payments in lieu of taxes as required or to comply with any provision,
term or condition of the agreement shall be grounds for the Township
to terminate the tax agreement, and/or to exercise such other remedies
as may be provided by statute, this article or the tax agreement.
(2)
Payment in lieu of taxes. All owners of projects subject to exemption
pursuant to the approval and execution of a tax agreement shall be
charged and obligated to make payments in lieu of full property taxes
of an annual amount computed by one of the formulas authorized by
Section 10 of the Act (N.J.S.A. 40A:21-10).
(3)
Execution of tax agreement. Upon adoption of an ordinance by the
Township Council authorizing the Township to enter into a tax agreement,
the Tax Collector shall insure that the tax agreement is circulated
to the appropriate persons or entities for execution. No tax agreement
shall be considered to be in force and effect unless and until it
has been signed by the applicant and the Mayor of the Township, after
which it shall be dated and certified by the Clerk by her/his signature
and the affixing of the Township seal.
(4)
Distribution of executed agreements. Once a tax agreement has been
fully executed, the Tax Collector shall distribute executed copies
thereof to the applicant, the Assessor, the construction code official,
the Business Administrator and the Township Attorney. The Tax Collector
shall retain one executed copy which shall be placed on permanent
file within her/his office and made available for examination pursuant
to the Open Public Records Act (N.J.S.A. 47:1A-1 et seq.).
A.
Duration of tax agreement; termination.
(1)
All tax agreements authorized pursuant to this article shall be in
effect for five full years next following the date of completion of
the project.
(2)
If the owner of a property that is subject to a tax agreement pursuant
to this article ceases to operate or disposes of the property without
prior approval of the Township Council, or fails to meet the conditions
for qualifying for exemption, then the taxes which would have otherwise
been assessed and payable for each year during which the tax agreement
was in effect shall become due and payable as if no exemption had
been granted. In the event a property owner fails to meet the qualifications
and conditions for exemption, the Assessor, on behalf of the Township,
shall provide notice of such act or omission to the property owner
and the Tax Collector. Within 15 days of the notice from the Assessor
the Tax Collector shall provide notice to the property owner of the
amount of the real estate taxes that are due.
(3)
Where it is determined that a new owner of a project or property
will continue to use the project or property pursuant to the conditions
which qualified the project or property for exemption, no tax shall
be due, the exemption shall continue, and the tax agreement shall
remain in effect in accordance with its terms .
(4)
Upon the termination of a tax agreement, a project shall be subject
to all applicable real property taxes, as provided by general laws.
B.
Conformance with other laws. All projects subject to tax agreements
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 provision, zoning, planning
and building code requirements.
C.
Filing of Tax Agreement. Within 30 days after the execution of a
tax agreement the Clerk shall file a copy with the Director of the
Division of Local Government Services within the New Jersey Department
of Community Affairs.
This article shall go into effect upon approval by the Township
Council in accordance with applicable law and shall remain in effect
until the termination date. Notwithstanding the foregoing, the Township
Council may, in its discretion, renew this article for an additional
term not to exceed 10 years. All applications for exemptions under
this article must be submitted by the termination date. Any applications
received after the termination date shall not be eligible for exemption.
The effective date of an exemption granted pursuant to this
article shall relate back to, and take effect as of, the date of completion
of the improvement, conversion alteration or construction of property
for which the exemption is granted, and shall continue for five annual
periods from that date. The grant of the exemption or tax agreement
shall be recorded and made a permanent part of the official tax records
of the Township, which record shall contain a notice of the termination
date thereof.
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
agreements pursuant to this article, the amount of the taxes to be
paid for the tax year in which the improvement, conversion or construction
of a property is completed shall be based on the assessed valuation
of the property for the current tax year, and prorated, plus any portion
of the assessed valuation of the improvement, conversion or construction
not allowed an exemption pursuant to this article, also prorated.
Except as otherwise provided, the property shall continue to be treated
in the appropriate manner for each of the four tax years subsequent
to the original determination by the assessor and shall be prorated
for the final tax year in which the exemption expires.
No exemption shall be granted, or tax agreement entered into,
pursuant to the Act with respect to any property for which property
taxes are delinquent or remain unpaid, or for which penalties for
nonpayment of taxes are due.
The exemption of real property taxes provided by the Township
pursuant to this article shall apply to property taxes levied for
municipal purposes, school purposes, county government purposes and
for the purposes of funding any other property tax exemptions.
The Township shall include a notice in the mailing of the annual
property tax bills to each owner of the properties where exemptions
are authorized pursuant to this article, advising such property owners
of same before the end of the first year following adoption of this
article.
Any property granted an exemption pursuant to this article shall
be subject to an inspection by the Township on an annual basis to
ensure that the property is in compliance with all applicable ordinances,
regulations and codes of the Township. Any property which is determined
to be in violation of any ordinance, regulation or code governing
health and safety standards, shall be subject to penalties and fines,
as applicable, or any other remedial action permitted by state statute,
including termination of any exemption.
If any provision of this article is legally invalid or is hereafter
found to be legally invalid, the remainder of the article shall remain
in full force and effect.
Nothing contained in this article shall be so construed as to
limit or deprive the Township of any rights or privileges which are
now or in the future conferred on the Township by state statute or
federal laws.
All prior ordinances or parts of prior ordinances inconsistent
herewith are hereby repealed.
