[Ord. 6 S+FF, 7-2-1997 § 10:16-1]
The City of Newark, pursuant to N.J.S. 54:4-3.150 et seq. makes
known its intention to utilize the tax exemption provision authorized
by the State Legislature to provide for exemptions of real property
taxes for environmental opportunity zones for terms of 10 years.
[Ord. 6 S+FF, 7-2-1997 § 10:16-2; Ord. 6 S+FO, 12-16-1998]
As used in this chapter, the following terms shall be defined
as indicated:
Shall mean discharged hazardous substance as defined pursuant
to Section 3 of P.L. 1976, c.141 (N.J.S. 58:10-23.11b), hazardous
waste as defined pursuant to Section 3 of P.L. 1977, c. 74 (N.J.S.
58:10A-3);
Shall mean any qualified real property that has been designated
by the Governing Body as an environmental opportunity zone pursuant
to Section 4 of P.L. 1977, c. 413 (N.J.S. 54:4-3.153);
Shall mean any remedial action that requires the continued
use of institutional controls but does not require the use of an engineering
control.
Shall mean any parcel of real property that is now vacant
or underutilized, which is in need of a remediation due to discharge
or threatened discharge of a contaminant, and which is listed in the
most recent Department of Environmental Protection publication of
known hazardous discharges sites in New Jersey prepared pursuant to
P.L. 1982, c. 202 (N.J.S. 58:10-23.15 et seq).
Shall mean all necessary action to investigate and clean
up or respond to any known, suspected, or threatened discharge of
contaminants, including, as necessary, the preliminary assessment,
site investigation, remedial investigation, and remedial action.
Shall mean cost associated with the implementation of a remediation,
including all direct and indirect legal, administrative and capital
costs, engineering costs, and annual operation, maintenance, and monitoring
cost.
Shall mean the municipal Tax Assessor appointed pursuant
to the provisions of Chapter 9 of Title 40A of the New Jersey Statutes;
Shall mean the amount determined by using the assessed valuation
of the environmental opportunity zone at the time of approval by the
Assessor of the exemption, regardless of any improvement made to the
environmental opportunity zone thereafter and as if the designation
of the environmental opportunity zone had not occurred.
Shall mean any remedial action that does not require the
continued use of engineering or institutional controls in order to
meet the established health risk or environmental standards.
[Ord. 6 S+FF, 7-2-1997 § 10:16-3]
The following condition shall apply to all applications for
tax exemption of the environmental opportunity zone at the time of
the application:
a.
The application shall be filed with the Tax Assessor of the taxing
district on a form prescribed by the Director of the Division of Taxation,
in the Department of Treasury of the State of New Jersey.
b.
Every application for tax exemption of the environmental opportunity
zone shall contain such information as the Governing Body deems appropriate,
together with all information required by this chapter.
[Ord. 6 S+FF, 7-2-1997 § 10:16-4; Ord. 6 S+FO, 12-16-1998]
Each approved exemption shall be evidenced by a financial agreement
between the municipality and the applicant approved by Ordinance of
the Governing Body authorizing an agreement for tax exemption for
a particular environmental opportunity zone for a period of 10 years,
except that a tax exemption may be extended up to 15 years, at the
municipality's option, if the qualified real property is to be
remediated with a limited restricted use remedial action or an unrestricted
use remedial action. The property tax exemption shall end if the difference
between the real property taxes otherwise due and payments made in
lieu of those taxes equals the total remediation cost for the qualified
real property.
[Ord. 6 S+FF, 7-2-1997 § 10:16-5]
Each approved exemption 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. The form of the agreement shall
be approved by the Corporation Counsel and shall be on file in the
Office of the City Clerk, the Tax Assessor and the Division of Tax
Abatement and Special Taxes.
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 claimants by the Governing Body of the municipality
constituting the taxing district. Every application for an exemption
may be approved and allowed by the Governing Body to the degree that
the application is consistent with the provisions of this enabling
chapter. The exemption shall not be granted by the Governing Body
until the owner of the property enters into a memorandum of agreement
or administrative consent order with the Department of Environmental
Protection for the remediation. An exemption that is granted shall
take effect upon the approval by the Governing Body and it shall be
recorded and made a permanent part of the official tax records of
the taxing district, which record shall contain a notice of the termination
date of the exemption. The owner of the property shall deliver a copy
of the approved exemption application to the Division of Local Government
Services in the Department of Community Affairs.
[Ord. 6 S+FF, 7-2-1997 § 10:16-6; Ord. 6 S+FO, 12-16-1998]
a.
Payments in lieu of real property taxes may be computed as a portion
of the real property taxes otherwise due, according to the following
schedule:
1.
In the first tax year following execution of a memorandum of agreement
or administrative consent order, no payment in lieu of taxes otherwise
due;
2.
In the second tax year following execution of a memorandum of agreement
or administrative consent order, an amount not less than 10% of taxes
otherwise due;
3.
In the third year following execution of a memorandum of agreement
or administrative consent order, an amount not less than 20% of taxes
otherwise due;
4.
In the fourth year following execution of a memorandum of agreement
or administrative consent order, an amount not less than 30% of taxes
otherwise due;
5.
In the fifth year following execution of a memorandum of agreement
or administrative consent order, an amount not less than 40% of taxes
otherwise due;
6.
In the sixth year following execution of a memorandum of agreement
or administrative consent order, an amount not less than 50% of taxes
otherwise due;
7.
In the seventh year following execution of a memorandum of agreement
or administrative consent order, an amount not less than 60% of taxes
otherwise due;
8.
In the eighth year following execution of a memorandum of agreement
or administrative consent order, an amount not less than 70% of taxes
otherwise due;
9.
In the ninth year following execution of a memorandum of agreement
or administrative consent order, an amount not less than 80% of taxes
otherwise due;
10.
In the tenth and all subsequent tax years following execution of
a memorandum of agreement or administrative consent order, the exemption
shall expire and the full amount of the assessed real property taxes,
taking into account the value of the real property in its remediated
state, shall be due.
Where a property tax exemption has been extended because of
the proposed implementation of a limited restricted use remedial action
or unrestricted use remedial action, the municipality may provide
for a different schedule for the payment in lieu of real property
taxes which payments may not exceed the length of the property tax
exemption.
b.
The payments required pursuant to this chapter, 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. In addition to the remedy set
forth herein, the requirements imposed pursuant to N.J.S.A 54:4-3.156
shall be enforced in the same manner as is provided for real property
taxes pursuant to Title 54 of the Revised Statutes.
[Ord. 6 S+FF, 7-2-1997 § 10:16-7]
Notwithstanding any provision in P.L. 1995, c.413 (N.J.S.A 54:4-3.150
et al.), if at any time the Governing Body of the municipality finds
that the memorandum of agreement for remediation of the environmental
opportunity zone has been terminated at the option of the applicant,
unless if an administrative consent order is issued in its place,
or that any of the conditions in the ordinance as required by subsection
(e) of Section 5 of P.L. 1995, c.413 (N.J.S.A. 54:4-3.154) are not
met, the period of the property tax exemption shall end.
[Ord. 6 S+FF, 7-2-1997 § 10:16-8]
A requirement that the environmental opportunity zone will be
remediated in compliance with the remediation standards adopted by
the Department of Environmental Protection pursuant to P.L. 1993,
c.139 (N.J.S.A. 58:10B-1 et al.) That the owner of the property will
enter into a memorandum of agreement or administrative consent order
with the Department to perform the remediation and will complete the
remediation pursuant to the agreement or order, and that, once remediated,
the environmental opportunity zone will be used for a commercial or
industrial purpose during the time period for which the real property
tax exemption is given.
[Ord. 6 S+FF, 7-2-1997 § 10:16-9]
No abatement 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 nonpayment of taxes are due.
[Ord. 6 S+FF, 7-2-1997 § 10:16-10]
The in-lieu payment shall be made in quarterly installments according to the same schedule as real property taxes 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 10:28-6 of this chapter shall be enforced in the same manner as is provided for in real property taxes.
[Ord. 6 S+FF, 7-2-1997 § 10:16-11]
The Division of Tax Abatement and Special Taxes shall be responsible
to administer the terms of the agreement throughout the period of
abatement.
[Ord. 6 S+FO, 12-16-1998]
Any tax exemption authorized and granted under the provisions
of N.J.S.A. 54:4-3.150 to 158 as amended and supplemented, shall not
be granted or applied in conjunction with any other exemption or abatement
authorized under other State law or Statute.
