Editor's Note: Pursuant to Section 3 of Ordinance 6 PSF-K, 1-21-2009, no tax abatement shall be granted to a nonowner occupant pursuant to Section 10:26-4b more than three years following the date of final adoption of this ordinance.
[Ord. 6 PSF-K, 1-21-2009 § 1]
This chapter shall be known and may be cited as the "five Year
Tax Abatement for Qualified Residential Properties."
[Ord. 6 S+FA(S-1), 2-27-1990 [10:15-1]; Ord. 6 S+FD, 7-11-1990; Ord. 6 S+FE, 5-6-1992; Ord. 6 S+FO, 8-5-1992; Ord. 6 PSF-K, 1-21-2009 § 1]
The City of Newark, pursuant to N.J.S.A. 54:4-3.139 et seq.
makes known its intention to utilize the tax abatement provision authorized
by the State legislature to provide for a five year tax abatement
for new one, two, three and four family residential structures as
defined herein. In addition, it is the intention of the City of Newark
to provide for a five year tax abatement, on the residential units
only, to owners of qualified residential properties consisting of
not more than four units, of which not more than one is used for business
or commercial purpose, who filed a tax abatement application based
upon the State form with the City of Newark within six months of the
adoption date of Ordinance 6 S+FA(S-1) 2-27-1990.
[Ord. 6 S+FA(S-1), 2-27-1990; Ord. 6 S+FD, 7-11-1990; Ord. 6 S+FI, 5-15-1991; Ord. 6 S+FO, 8-5-1992; Ord. 6 PSF-K, 1-21-2009 § 1]
When used in this chapter, the following terms shall be defined
as indicated:
a.
ABATEMENT — Shall mean an exemption from property taxes provided
for the purpose of encouraging residential construction.
b.
ASSESSOR — Shall mean the Municipal Tax Assessor appointed
pursuant to the provisions of Chapter 9 of Title 40A of the New Jersey
Statutes.
c.
AVERAGE RATIO — Shall mean the certified average ratio, used
for determining the common level range for each taxing district pursuant
to N.J.S.A. 54:1-35a et seq. as prepared by the Director of the Division
of Taxation for the preceding tax year.
d.
COMPLETED — With respect to a parcel of qualified property,
or the "completion" of that property, shall mean substantially ready
for the use for which it is intended and its occupancy as a principal
residence.
e.
CONDOMINIUM — Shall mean the form of real property ownership
provided for under the "Condominium Act," N.J.S.A. 46:8B-1 et seq.
f.
COOPERATIVE — Shall mean 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 constructed or erected by the corporation
or association.
g.
COST — When used with respect to construction, shall mean only
the cost or fair market value of labor and materials used in constructing
qualified residential property, including any architectural, engineering,
and contractors fees associated with the construction as the owner
of the property shall cause to be certified to the Governing Body
by an independent and qualified architect licensed in the State of
New Jersey or a certified construction cost audit by an independent
Certified Public Accountant licensed in the State of New Jersey. Certifications
submitted must provide a detailed breakdown of each cost component
and a description of materials and the method of construction employed.
h.
EQUALIZED TAXES OTHERWISE DUE — Shall mean the tax amount derived
by levying on a structure for which a five year tax abatement has
been granted a property tax imposed in the same manner as other property
taxes are levied pursuant to Chapter 4 of Title 54 of the Revised
Statutes, except that for all tax years subsequent to the last tax
abatement year including and ending in the tax year prior to a municipal-wide
revaluation the total property tax prior to any tax deduction shall
be equalized by the Tax Collector by multiplying that amount times
the average ratio of the taxing district, but in no event shall the
payment for equalized taxes otherwise due be less than the total property
tax payment on the structure prior to any tax deduction due and payable
during the third tax year following completion of construction, pursuant
to N.J.S.A. 54:4-3.145. No appeal shall be taken by the property owner
from the determination by the Tax Collector of equalized taxes otherwise
due, except for mathematical or typographical errors.
i.
HORIZONTAL PROPERTY REGIME — Shall mean the form of real property
ownership provided for under the "Horizontal Property Act," N.J.S.A.
46:8A-1 et seq.
j.
QUALIFIED RESIDENTIAL PROPERTY — Shall mean any building used
or to be used or held for use as a home or residence, including condominiums,
cooperatives and horizontal property regimes. No building shall be
considered a qualified residential property if the certificate of
occupancy for the construction was issued more than 30 months prior
to January 1, 1990.
k.
TAXES OTHERWISE DUE — For the purposes of this section, the
amount of "taxes otherwise due" shall be determined by including the
appropriate percentage of the assessed valuation of the abated structure,
improvement or conversion alteration, as the case may be, on the assessment
list of the municipality as taxable property, and levying taxes thereon
in the same manner as other taxes are levied pursuant to Chapter 4
of Title 54 of the Revised Statutes; provided, however, that no value
for a property subject to the provisions of this Act shall be included
in the calculation of the "net valuation on which County taxes are
apportioned" until the sixth year.
[Ord. 6 S+FA(S-1), 2-27-1990 § 10:15-3; Ord. 6 S+FD, 7-11-1990; 6 S+FI, 5-15-1991; Ord. 6 PSF-K, 1-21-2009 § 1; Ord. 6PSF-C, 8-1-2012]
Owners of newly constructed residential properties consisting
of one, two, three and four dwelling units located in Newark are entitled
to avail themselves of the opportunity to gain a five year tax abatement
as provided in this chapter when they meet the following qualifications:
a.
The newly constructed residential dwelling unit, condominium unit,
unit in a horizontal property regime or cooperative shall be occupied
by the owner thereof or the residential shareholders in the case of
a cooperative. If the owner occupancy requirement is not satisfied,
the annual payment in lieu of taxes on the unit or dwelling shall
be increased by 1% above the amount otherwise chargeable;
b.
In the case of residential dwellings consisting of more than one unit, the owner must occupy at least one unit. If the owner occupancy requirement is not satisfied, the annual payment in lieu of taxes on the unit or dwelling shall be increased by 1% above the amount otherwise chargeable. The Municipal Tax Assessor is hereby directed to consider any application by a nonowner occupant which was timely filed pursuant to Section 10:26-5b and able to provide proof such of filing, notwithstanding that such filing may have occurred subsequent to January 21, 2012 (the date three years following the date of final adoption of Ordinance 6-PSF-K 1-21-2009) and prior to the effective date of the ordinance authorizing this amendment to Section 10:26-4. (Note: The effective date of Ordinance 6PSF-C, 080112, codified herein is August 10, 2012.)
c.
All real estate taxes must be current;
d.
Written application to the Tax Assessor filed within 30 days including
Saturdays and Sundays following completion of the improvements;
e.
Submission of an architect's certification which sets forth
the cost of construction, certified to the Governing Body or a certified
construction cost audit by an independent Certified Public Accountant;
f.
Approval by Ordinance of the Municipal Council;
g.
The entry into a formal written agreement with the City;
h.
Submission by applicant of a certificate of occupancy;
i.
If the residential dwelling is owner-occupied, the applicant must
submit two proofs of owner-occupancy. Such proofs can be a driver's
license, utility bills, and/or car registration. Proofs submitted
must be current and valid at the time of submission. Applicant must
also submit a notarized Affidavit stating that he/she presently resides
in the property to be abated. Proofs must be resubmitted annually
no later than July 31 of each year to the Division of Revenue Collections.
j.
Submission by applicant of a deed with legal description of property.
[Ord. 6 S+FA(S-1), 2-27-1990 § 10:15-4; Ord. 6 PSF-K, 1-21-2009 § 1]
The following conditions shall apply to all applications for
tax abatements at the time of the application:
a.
The application shall be filed with the Tax Assessor within 30 days
following the completion of the improvement or conversion alteration;
and
b.
Every application for tax abatement shall contain such information
as the Governing Body deems appropriate, together with all information
required by this chapter.
[Ord. 6 S+FA(S-1), 2-27-1990 § 10:15-5; Ord 6 PSK, 1-21-2009 § 1]
All such abatements or projects shall be approved by Ordinance
of the Governing Body authorizing an agreement for tax abatement for
a particular property for a period of five years, except as provided
herein, upon which such property is erected and which is necessary
for the fair enjoyment thereof.
[Ord. 6 S+FA(S-1), 2-27-1990 § 10:15-6; Ord. 6 S+FO, 8-5-1992 § 10:15-6; Ord 6 PSF-K, 1-21-2009 § 1]
Each approved abatement shall be evidenced by a financial agreement
between the City of Newark and the applicant. The agreement shall
be in a form prepared by the applicant and shall contain the representations
that are required by this chapter, together with such other information
required by the Corporation Counsel.[1] The form of the agreement shall be approved by the Corporation
Counsel and shall be on file in the Office of the City Clerk. Any
application requesting, and any ordinance authorizing an abatement
need not contain a form of financial agreement, but may instead refer
to a form of financial agreement which has been approved by separate
ordinance.
[1]
Editor's Note: A copy of the form of agreement referred
to herein may be obtained from the office of the City Clerk.
[Ord. 6 S+FA(S-1), 2-27-1990; Ord. 6 S+FI, 5-15-1991 § 10:15-7; Ord. 6 PSF-K, 1-21-2009 § 1]
The Governing Body may grant a tax abatement for a period of
five years and provide for payment in lieu of real property taxes
to be computed as 2% of the cost of the improvement where the owner
resides in the residential dwelling or conversion, as appropriate,
or 1% above the amount otherwise chargeable under this chapter where
the residential dwelling is not owner occupied. The owner's failure
to pay the payment in lieu of real property taxes when due shall be
grounds to rescind the tax abatement and financial agreement.
[Ord. 6 PSF-K, 1-21-2009 § 1]
An administration fee, payable to the municipality in the amount
of 1% of the in lieu payment, will be due annually from the owner
of the parcel of the qualified property granted an abatement pursuant
to this chapter.
[Ord. 6 S+FA(S-1), 2-27-1990; Ord. 6 S+FO, 8-5-1992 § 10:15-8; Ord. 6 PSF-K, 1-21-2009 § 1]
In addition to the payments required in lieu of taxes in Section 10:26-8 and the annual administrative fee in Section 10:26-9, the owner of the parcel of the qualified property granted an abatement or extension pursuant to this chapter shall be liable for all real property taxes assessed and levied against the land on which the qualified residential property is situated. The owner's failure to pay the real property taxes levied against the land shall be grounds to rescind the tax abatement and financial agreement.
[Ord. 6 S+FA(S-1), 2-27-1990; Ord. 6 S+FO, 8-5-1992 § 10:15-2009; Ord. 6 PSF-K, 1-21-2009 § 1]
No abatement and/or extension shall be granted pursuant to this
chapter with respect to any property for which property taxes are
delinquent or remain unpaid or for which penalties for non-payment
of taxes are due.
[Ord. 6 S+FA(S-1), 2-27-1990; Ord. 6 S+FO, 8-5-1992 § 10:15-10; Ord. 6 PSF-K, 1-21-2009 § 1]
The in lieu payment shall be made in quarterly installments according to the same schedule as real property taxes are due and payable. Failure to make these payments shall result in the termination of the abatement. In addition to the remedy set forth herein, the payment authorized by Section 10:26-8 shall be enforced in the same manner as is provided for in real property taxes.
[Ord. 6 S+FA(S-1), 2-27-1990; Ord. 6 S+FO, 8-5-1992 § 10:15-11; Ord. 6 PSF-K, 1-21-2009 § 1]
The Division of Revenue Collections shall be responsible to
administer the terms of the agreement throughout the period of abatement
and/or extension.
[Ord. 6 S+FA(S-1), 2-27-1990; Ord. 6 S+FO, 8-5-1992 § 10:15-12; Ord. 6 PSF-K, 1-21-2009 § 1]
The added assessment provisions of N.J.S.A. 54:4-63.3 and the
omitted assessment provisions of N.J.S.A. 54:4-63.20 and N.J.S.A.
54:4-63.33 shall not be applicable to any property for which the owner
has been granted a tax abatement under this chapter.
[Ord. 6 PSF-K, 1-21-2009 § 1]
If the applicant shall transfer ownership of any residential property during the term of the applicable financial agreement or if any such transferee shall thereafter again transfer such ownership, the financial agreement relating thereto shall be deemed to be assigned to and assumed by each such subsequent owner; provided, however, that the owner occupancy requirement shall be deemed not to be satisfied by any such transferee (and the additional payment described in the second sentence of paragraph a or b, as applicable, of Section 10:26-4 shall be payable by such transferee) unless, within 30 days following the transfer to such transferee, and annually thereafter as required thereby, the proofs required by Section 10:26-4i shall have been filed with the Tax Assessor. Accordingly, the abatement shall continue notwithstanding such transfer, and the financial agreement shall remain in effect during the original term thereof. Such continuation shall also apply to any financial agreement relating to a residential property which has been transferred prior to the effectiveness of the ordinance authorizing this Section 10:26-15, provided that the Tax Assessor has not previously notified either the transferor or the transferee of the lapse of such abatement.
