Tax exemptions shall be granted for improvements to dwellings
only on an individual basis in accordance with N.J.S.A. 40A:21-5 of
the Five-Year Law, after review and evaluation of each application
by the Tax Assessor, who shall then make a recommendation to the City
Council. The City Council may approve by resolution an exemption from
taxation of improvements to the dwelling. Such exemption shall regard
the first $25,000 of the Tax 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 such property for a period of five years, notwithstanding
the value of the dwelling to which the improvements are made is increased
thereby; provided, however, that during the five-year period, the
assessment on such dwelling shall in no case, except that of damage
through action of the elements sufficient to warrant a reduction,
be less than the assessment thereon existing immediately prior to
such improvements.
Tax exemptions shall be granted for improvements to multiple
dwellings only on an individual basis in accordance with N.J.S.A.
40A:21-6 of the Five-Year Law, after review and evaluation of each
application by the Tax Assessor, who shall then make a recommendation
to the City Council. The City Council may approve by resolution an
exemption from taxation of improvements to multiple dwellings. Such
exemption shall regard up to the Tax 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 thereby;
provided, however, that during the five-year period, the assessment
on such multiple dwelling shall in no case, except that of damage
through action of the elements sufficient to warrant a reduction,
be less than the assessment thereon existing immediately prior to
such improvements.
Upon approval of an exemption by the City Council for improvements
to commercial and industrial structures, the Tax Assessor shall, in
determining the value of the existing commercial and industrial structures
that are more than 20 years old, regard the first $100,000 in the
Tax Assessor's full and true value of improvements to such commercial
and industrial structures 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;
provided, however, that during the five-year period, the assessment
on such dwelling shall in no case, except that of damage through action
of the elements sufficient to warrant a reduction, be less than the
assessment thereon existing immediately prior to such improvements.
The Tax Assessor shall determine on October 1 of the year following
the date of the completion of an improvement the true taxable value
of the real property granted an exemption pursuant to this article.
The amount of tax to be paid for the tax year in which the project
is completed shall be based on the assessed valuation of the property
for the current tax year plus the prorated portion of the assessed
valuation of the improvement not allowed an exemption pursuant to
this article. The property shall continue to be treated in the appropriate
manner for each of the four tax years subsequent to the resolution
of the City Council and shall be prorated for the final tax year in
which the exemption expires.
Additional improvements completed during a period in which the
improved property is subject to a previously granted exemption in
an amount less than the maximum deductible permissible may qualify,
subject to the review and approval provisions in this article, for
additional exemptions under terms and conditions herein specified.
In calculating the assessed value in such case, the additional improvement
shall be considered as separate for the purposes of calculating the
exemption, except that the assessed value of any previous improvement
shall be added to the assessed valuation as it was prior to that improvement
for the purpose of determining the assessed valuation of the property
from which any additional abatement is to be subtracted. Unless specifically
provided under this article, no additional exemptions or abatements
shall be permitted.
No exemption or abatement shall be granted for any properties
for which property taxes are delinquent or remain unpaid, or for which
penalties for nonpayment of taxes are due.
On or about October 1 of each year, the City Council shall report
to the Director of the Division of Local Government Services in the
Department of Community Affairs and to the Director of the Division
of Taxation in the Department of the Treasury the total amount of
real property taxes exempted and abated within the City in the current
tax year in accordance with N.J.S.A. 40A:21-21 of the Act.