Editor's Note: This chapter was previously adopted by
Ord. 1-19-1977, (R.O. 1966 C.S. 10:10-1 et seq.) entitled "Tax Abatement
for Certain Rehabilitated Dwellings."
[Ord. 6 S+FH, 2-2-1994 § 10:10-1; amended 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
The City of Newark pursuant to N.J.S. 40A:21-1 et seq. makes
known its intention to utilize the tax exemption and abatement provision
authorized by the State legislature to provide five year exemptions
and abatements for residential structures as defined herein.
[Ord. 6 S+FH, 2-2-1994 § 10:10-2; Ord. 6 PSF-G, 10-7-2015 § 2; amended 6-21-2022 by Ord. No. 6PSF-I(s),
06-21-2022]
As used in this chapter:
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 to
this act.
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. 40A:12A-1
et al.), a "blighted area" as determined pursuant to the "Blighted
Areas Act," (N.J.S. 40:55-21.1 et seq.), or which has been determined
to be in need of rehabilitation pursuant to N.J.S. 54:4-3.72 et seq.,
N.J.S. 54:4-3.95 et seq., or N.J.S. 54:4-3.121 et seq.
Shall mean the the Tax Assessor of the City of Newark, the
officer of the taxing district charged with the duty of assessing
real property for the purpose of general taxation.
Shall mean substantially ready for the intended use for which
a building or structure is constructed, improved or converted.
Shall mean a property created or recorded as a condominium
pursuant to the "Condominium Act," N.J.S. 46:8B-1 et seq.
Shall mean the provision of a new dwelling but shall not
mean the conversion of an existing building or structure to another
use.
Shall mean 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.
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 owned by the corporation or association.
Shall mean when used with respect to abatements for dwellings,
only the cost or fair market value of direct labor and materials used
in improving or of constructing a dwelling, or of converting another
building or structure to a dwelling, including any architectural,
engineering, and contractor's fees associated therewith, as the owner
of the property shall cause to be certified to the Tax Assessor of
the City of Newark by an independent and qualified architect, following
the completion of the project.
Shall mean a building or part of a building used, to be used
or held for use as a 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," N.J.S. 55:13A-1 et seq. and containing
more than four residential units so as to be consistent with Class
II residential property as defined in N.J.A.C. 18:12-2.2. 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,"
N.J.S. 46:8A-1 et seq., or the "Condominium Act," N.J.S. 46:8B-1 et
seq., or of a cooperative, if the residential units are owned separately.
Shall mean 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 this act.
Shall mean a property submitted to a horizontal property
regime pursuant to the "Horizontal Property Act," N.J.S. 46:8A-1 et
seq.
Shall mean a modernization, rehabilitation, renovation, alteration
or repair which produces a 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 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 pursuant to this act.
Shall mean any construction or development of residential
building on vacant land, or the demolition of existing structures
on real property and the construction or development of a new structure
on the previously developed real property.
Shall mean the Newark Downtown District, the area of and
around the Newark Liberty International Airport, and the area in and
around the Port of Newark.
Project means the construction, improvement or conversion
of a structure in an area in need of rehabilitation that would qualify
for an exemption, or an exemption and abatement, pursuant to P.L.
1991, c. 441 (C. 40A:21-1 et seq.)
[Ord. 6 S+FH, 2-2-1994 § 10:10-3; Ord. 6 PSF-J, 1-21-2009 § 1; Ord.
6 PSF-G, 10-7-2015 § 3;
amended 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
Categories of improvements eligible for the abatement or exemption
under this authorizing ordinance may be amended by the Municipal Council
after review and evaluation.
Properties outside of nonapplicable areas where the owner(s)
seek to newly construct dwellings, and properties outside of non-applicable
areas where the owner(s) seek to construct improvements to dwellings
that are located outside of the non-applicable areas of City of Newark
are entitled to avail themselves of the opportunity to receive a five-year
tax exemption and/or tax abatement as provided in this chapter when
the qualifications are met as follows:
a.
All real estate taxes must be current;
b.
Written application to the Tax Assessor shall be filed within 30
days, including Saturdays and Sundays, following completion of the
improvements, and the form of the application shall contain requirements
set forth in N.J.S.A. 40A:21-9;
c.
Approval by the Tax Assessor in accordance with the requirements
set forth in this ordinance; and;
d.
Submission by applicant of a Certificate of Occupancy.
[Ord. 6 S+FH, 2-2-1994 § 10:10-4; amended 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
No application for Tax Exemption and Abatement submitted pursuant
to this chapter shall be accepted unless it is accompanied by full
payment of the required application fee. Such fees shall be in the
amount of $250 for dwellings. These fees shall be received as compensation
for the legal review and related work of the City's departments and
agencies. All checks shall be certified and payable to the City. This
application fee shall be nonrefundable.
[Ord. 6 S+FH, 2-2-1994 § 10:10-5; Ord. 6 PSF-J, 1-21-2009 § 2; amended 6-21-2022 by Ord. No. 6PSF-I(s),
06-21-2022]
For the exemption from taxation of improvements to dwellings, in determining the value of real property, the municipality shall regard the first $25,000 in assessor's full and true value of improvements for each dwelling unit primarily and directly affected by the improvement in any dwelling more than 20 years old, 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 thereby. During the exemption period, the assessment on the property shall not be less than the assessment thereon existing immediately prior to the improvements, unless an abatement is granted pursuant to this Section 10:23-5, or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
For any property for which an exemption is granted under the preceding paragraph of this Section 10:23-5, the Assessor upon approving said exemption may also provide for the abatement of some portion of the assessed value of the property (including the land) receiving the exemption as it existed immediately prior to the improvement, as provided in and subject to the limitations of N.J.S.A. 40A:21-5(b).
If the applicant shall transfer ownership of a dwelling during the term of the applicable tax abatement and/or exemption or if any such transferee shall thereafter again transfer such ownership, the tax abatement and/or exemption relating thereto shall be deemed to be assigned to and assumed by each such subsequent owner. Accordingly, the abatement and/or exemption shall continue notwithstanding such transfer, and the tax agreement shall remain in effect during the original term thereof. Such continuation shall also apply to any tax abatement and/or exemption relating to a dwelling which has been transferred prior to the effectiveness of the ordinance authorizing this amendment to Section 10:23-5, provided that the Tax Assessor has not previously notified either the transferor or the transferee of the lapse of such abatement and/or exemption.
[Ord. 6 PSF-J, 1-21-2009 § 3; Ord. 6 PSF-A, 7-1-2015; amended 11-18-2020 by Ord. No. 6PSF-M, 11-18-2020; 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
In the case of construction of projects consisting of condominium
housing units, or of conversions of other buildings and structures,
including unutilized public buildings, to condominium housing use,
or both, the owner of such property may apply for an exemption and
abatement in respect of such project, stating separately (i) the "common
elements" of such condominium as defined pursuant to the "Condominium
Act," P.L. 1969, c.257 (C.46:8B-1 et seq.) and (ii) each proposed
condominium housing unit which is intended to be subsequently conveyed
by the applicant to an individual owner thereof (each, an "Eligible
Property"). Such application shall be made in accordance with the
provisions of N.J.S.A. 40A:21-9, and upon approval by the Assessor
authorizing the tax abatement and/or exemption for the project, the
applicant (or, if an Eligible Property shall have been conveyed to
an individual owner thereof and the requirements of the following
paragraph have been satisfied, such owner) shall, in lieu of full
property tax payments on the Eligible Property, pay to the municipality
an amount annually equal to the following percentage of taxes otherwise
due:
a.
In the first full tax year after completion, no payment in lieu of
taxes otherwise due on the Eligible Property;
b.
In the second tax year, an amount not less than 20% of taxes otherwise
due on the Eligible Property;
c.
In the third tax year, an amount not less than 40% of taxes, otherwise
due on the Eligible Property;
d.
In the fourth tax year, an amount not less than 60% of taxes, otherwise
due on the Eligible Property; and
e.
In the fifth tax year, an amount not less than 80% of taxes otherwise
due on the Eligible Property.
If the applicant shall transfer ownership of an Eligible Property
during the term of the applicable tax abatement and/or exemption,
or if any transferee shall thereafter again transfer such ownership,
the Municipal Council hereby determines that, in the absence of information
to the contrary, each such subsequent owner shall continue to use
the property pursuant to conditions which qualified the property for
its abatement and/or exemption, and the tax abatement and/or exemption
relating thereto shall be deemed to be assigned to and assumed by
each such subsequent owner. Accordingly, the abatement and/or exemption
shall continue notwithstanding such transfer and shall remain in effect
during the original term thereof.
No exemption or abatement shall be granted under this Section 10:23-5A more than ten years following the date of final adoption of this amendment to Section 10:23-5A of this chapter.
All other provisions of N.J.S.A. 40A:21-8 through N.J.S.A. 40A:21-13 shall be applicable to any exemption and abatement granted pursuant to this Section 10:23-5A.
Any applications on file for such abatements or exemptions,
on January 1, 2019, to the date of enactment of this section (Ord.
No. 6PSF-M, 11-18-2020), shall be eligible for consideration. However,
the abatement or exemption shall not obligate the City to pay a refund
of any taxes paid. Any adjustments to the assessment for each property
shall be made by the Tax Assessor and credits applied to the account
for the applicable property.
Editor's Note: Ord. No. 6PSF-I(s), 06-21-2022 repealed prior
Section 10:23-5B, Exemptions and Abatements for Multiple Dwellings.
Prior history includes Ord. 6-PSF-G, 10-7-2015 § 4; Ord.
6PSF-C, 6-15-2016; and Ord. No. 6PSF-M, 11-18-2020.
Editor's Note: Ord. No. 6PSF-I(s), 06-21-2022 repealed prior
Section 10:23-5C, Exemptions and Abatements for Commercial and Industrial
Structures. Prior history includes Ord. 6-PSF-G, 10-7-2015 § 4
; Ord. 6PSF-C, 6-15-2016; and Ord. No. 6PSF-M, 11-18-2020.
[Ord. 6 PSF-G, 10-7-2015 § 4; Ord. 6PSF-C, 6-15-2016; amended 11-18-2020 by Ord. No. 6PSF-M, 11-18-2020; 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
Exemptions and abatements from taxation shall be permitted within
the City other than the Non-Applicable Areas for New Construction
of Dwellings and Projects.
Applicants shall provide a completed application containing
information set forth in N.J.S.A. 40A:21-10 for the applicant to pay
to the City in lieu of full property tax payments an amount annually
to be computed by the following formulas:
a.
Tax Phase-in Basis (0% payment in lieu of taxes in year one, 20%
payment in lieu of taxes in year two, 40% payment in lieu of taxes
in year three, 60% payment in lieu of taxes in year four, 80% payment
in lieu of taxes in year five) as set forth in N.J.S.A. 40A:21A-10.
|
Any applications on file for such abatements or exemptions,
on January 1, 2019 to the date of enactment of this section (Ord.
No. 6PSF-M, November 18, 2020), shall be eligible for consideration.
However, the abatement or exemption shall not obligate the City to
pay a refund of any taxes paid. Any adjustments to the assessment
for each property shall be made by the Tax Assessor and credits applied
to the account for the applicable property.
|
[Ord. 6 S+FH, 2-2-1994 § 10:10-6; amended 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
Applicants for tax exemption and abatement shall provide the
Department of Finance, Office of the Tax Assessor with an application
setting forth:
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 Tax
Assessor 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 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 (1) the real property taxes currently being assessed
at the project site; (2) estimated tax payments that would be made
annually by the applicant on the project during the period of the
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;
h.
Such other pertinent information as the Assessor may require to effectuate
the authority granted to the Assessor by N.J.S.A. 40A:12-16.
[Ord. 6 S+FH, 2-2-1994 § 10:10-7; Ord. 6 PSF-G, 10-7-2015 § 4; amended 6-21-2022 by Ord. No. 6PSF-I(s),
06-21-2022]
All tax exemptions and/or tax abatements shall be approved by
the Assessor authorizing a tax exemption and/or tax abatement for
a particular property for a period of five years following completion
that meet the requirements of this Ordinance as authorized by N.J.S.A.
40A:21-1, et seq.
[Added 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
Ord. No. Ord. No. 6PSF-I(s), 06-21-2022 repealed prior Section 10:23-8, Financial Agreement. Prior history includes Ord. 6-S+FH, 2-2-1994 § 10:10-8.
a.
Failure
to meet qualifying conditions. 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 City through the Assessor
shall notify the property owner and 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 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 tax abatement
and/or exemption shall remain in effect.
b.
Termination.
At the termination of a tax abatement and/or exemption, a project
shall be subject to all applicable real property taxes as provided
by state law and regulations and local ordinances, but nothing herein
shall prohibit a project at the termination of the tax abatement and/or
exemption from qualifying for and receiving the full benefits of any
other tax preferences provided by law.
[Ord. 6 S+FH, 2-2-1994 § 10:10-9; Ord. 6 PSF-J, 1-21-2009 § 4]
In addition to the payments required in lieu of taxes via Section 10:23-8 of this chapter, the owner of property which has qualified for tax exemption and/or tax abatement shall be liable for all real estate taxes assessed and levied against the land on which the qualified property is located, except as such taxes may be abated pursuant to Section 10:23-5 or Section 10:23-5A.
[Ord. 6 S+FH, 2-2-1994 § 10:10-10]
No exemption and abatement shall be granted pursuant to this
chapter with respect to any property for which real estate taxes or
other municipal charges are delinquent or remain unpaid, or for which
penalties and interest for nonpayment of taxes are due.
[Ord. 6 S+FH, 2-2-1994 § 10:10-11]
The payment in lieu of full property taxes 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 exemption or abatement. In addition to the remedy set forth herein, the payment authorized by Section 10:23-8 of this chapter shall be enforced in the same manner as is provided for in real property taxes.
[Ord. 6 S+FH, 2-2-1994 § 10:10-12; amended 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
The exemption and abatement of real property taxes provided
by the Assessor on behalf of the City of Newark pursuant to this chapter
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 or abatements.
Editor's Note: Ord. No. 6PSF-I(s), 06-21-2022 repealed prior
Section 10:23-13, Applicant's Responsibility for Costs. Prior history
includes Ord. 6-S+FH, 2-2-1994 § 10:10-13.
[Ord. 6 S+FH, 2-2-1994 § 10:10-14; amended 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
All projects 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.
[Ord. 6 S+FH, 2-2-1994 § 10:10-15]
The Division of Tax Abatement and Special Taxes shall be responsible
to administer the terms of the Agreement during the period of the
exemption and abatement.
[Ord. 6 S+FH, 2-2-1994 § 10:10-16]
The added assessment provisions of N.J.S. 54:4-63.3 and the
omitted assessment provisions of N.J.S. 54:4-63.20 and N.J.S. 54:63-33
shall not be applicable to any property for which the owner-occupant
has been granted a tax exemption and/or abatement under this chapter.
[Ord. 6 S+FH, 2-2-1994 § 10:10-17; amended 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
Any property which is granted a Tax Exemption and/or Abatement
pursuant to this chapter shall be subject to an inspection by the
City of Newark on an annual basis to ensure that such properties are
in compliance with all ordinances, regulations, and safety codes of
the City. Any property which is determined to be in violation of any
ordinance, regulation, and/or safety code of the City, shall be subject
to recission by the Assessor.
[Ord. 6 PSF-G, 10-7-2015 § 5; amended 6-21-2022 by Ord. No. 6PSF-I(s), 06-21-2022]
Five year tax abatements shall be applied for and granted on
a project basis pursuant to N.J.S.A. 40A:12A-8.
[Ord. 6 PSF-G, 10-7-2015 § 6; amended 11-18-2020 by Ord. No. 6PSF-M, 11-18-2020]
The Five-Year Tax Exemption and Abatement shall apply to all
areas outside of the nonapplicable areas for the next ten years following
the date of final adoption of this amendment (amended by Ord. No.
6PSF-M, 11-18-2020) to this chapter.
