[HISTORY: Adopted by the Township Committee of the Township
of Harding as indicated in article histories. Amendments noted where
applicable.]
[Adopted 5-11-2020 by Ord. No. 07-2020]
This article shall be known and may be cited as the "Five-Year
Exemption and Abatement Ordinance."
The Governing Body finds that N.J.S.A. 40A:12A-21 et seq., authorized
by Article 8, § 1, Paragraph 6, of the New Jersey Constitution,
permitting municipalities to grant five-year periods of exemptions
or abatements, or both, from taxation in areas in need of rehabilitation
have proven to be effective in promoting the construction and rehabilitation
of residential, commercial and industrial structures in such areas.
It is the purpose of this article to permit the Township of Harding
the greatest flexibility possible within the constitutional and statutory
limitations to address problems of deterioration and decay through
the employment of such exemptions and abatements within areas in need
of rehabilitation.
The Township, pursuant to N.J.S.A. 40A:21-1 et seq., makes known
its intention to utilize the tax exemption and abatement provision
enacted by the New Jersey Legislature to authorize five-year exemptions
and abatements for multiple dwellings and commercial projects, or
projects combining both uses.
A tax agreement entered into between a developer and the
Township under the Five-Year Exemption and Abatement Law, including
all amendments and supplements thereto.
The information required to be submitted by a developer seeking an exemption and/or abatement and conforming to the requirements of § 355-6 hereof.
The Tax Assessor of the Township.
The person or entity who or which is seeking or receiving
an exemption, including an assignee in any case where the Township
Committee has approved the assignment thereof.
The Five-Year Exemption and Abatement Law (N.J.S.A. 40A:21-1
et seq.), as amended and supplemented.
The real property and the improvements thereon which are
the subject of an agreement and are located within an area in need
of rehabilitation or redevelopment, as defined in the law.
The real property and the improvements subject to an Agreement.
The Township of Harding, in the County of Morris, New Jersey.
The Business Administrator of the Township.
The Clerk of the Township.
The Township Committee of the Township.
A developer of property located in an area in need of rehabilitation
or redevelopment in the Township may avail himself of the opportunity
to receive a five-year tax exemption and/or abatement as provided
in this article as follows:
No exemption or abatement shall be granted nor any agreement
considered unless the developer shall first have submitted an original
and three copies of an application with the Assessor in accordance
with the requirements set forth in N.J.S.A. 40A-21-1 et seq. Every
application shall be filed with the Assessor within 30 days, including
Saturdays and Sundays, following the completion of the improvement,
conversion, alteration or construction. Every application for exemption,
or exemption and abatement, shall be approved and allowed by the Assessor
for review to the degree that the application is consistent with the
provisions of the adopting ordinance or the tax agreement, 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 N.J.S.A.
40A:21-1 et seq., and the tax agreement, if required. The granting
of an exemption, or exemption and abatement, shall relate back to,
and take effect as of, the date of completion of the project, or portion
or stage of the project for which the exemption, or exemption and
abatement, is granted, and shall continue for five annual periods
from that date. The grant of the exemption, or exemption and abatement,
or tax agreement 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 thereof.
All exemptions and abatements shall be approved by resolution
of the Township Committee authorizing an agreement for tax exemption
and/or tax abatement for a particular property for a period of five
years.
Each project which has been approved by the Township Committee
for an exemption or abatement shall be evidenced by a tax agreement
between the Township and the developer. The agreement shall be in
a form approved by the Township Committee and shall contain representations
that are required by this article and as required under N.J.S.A. 40A:21-1
et seq. The agreement shall provide for the developer to make payments
to the Township in lieu of full property tax payments on improvements
of an annual amount to be computed pursuant to the formula set forth
in N.J.S.A. 40A:21-10(c).
A.Â
Form of agreement. All agreements for an exemption and/or abatement
shall be in the form appropriate to the nature of the exemption and/or
abatement. Such agreements shall at a minimum set forth the identification
of the property, the nature and magnitude of the improvements to be
constructed thereon, the consideration to be paid to the Township
and the conditions thereon, the duration of the agreement and the
grounds for its termination. The agreement shall in all cases further
provide that any changes made in the ownership of the project or which
would materially change the terms of the agreement shall under the
agreement be void unless approved by the Township by ordinance.
B.Â
Formula for payments under tax agreements. The agreement shall provide
for the applicant to pay to the Town in lieu of full property tax
payments an amount annually to be computed by one, but in no case
a combination, of the formulas set forth in N.J.S.A. 40A:21-10.
C.Â
Execution of agreement. No agreement shall be considered to be in
force and effect unless and until it has been signed by the developer
and the Mayor, after which it shall be dated and certified by the
Township Clerk by his/her signature and the affixing of the Township
Seal.
After completion of construction and the issuance of a final
certificate of occupancy, the project shall be maintained and operated
consistent with the terms of the agreement and in accordance with
the provisions of N.J.S.A. 40A-21-1 et seq. until the termination
of the agreement.
In addition to the payments required in lieu of property taxes
pursuant to the tax agreement, the developer or owner of the property
which has qualified for an exemption and/or abatement shall be liable
for all real estate taxes assessed and levied against the land on
which the exempt and/or abated improvements are located.
No exemption and/or abatement shall be granted pursuant to this
article 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.
The payment in lieu of 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 and/or abatement.
The exemption and abatement of real property taxes provided
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 or abatements.
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.
The added assessment provisions of Section 3 of P.L. 1941, c.
397 (N.J.S.A. 54:4-63.3), and the omitted assessment provisions of
Section 9 of P.L. 1947, c. 413 (N.J.S.A. 54:4-63.20), and Section
1 of P.L. 1968, c. 184 (N.J.S.A. 54:4-63.31), shall not be applicable
to any improvements that are exempt from taxation under this article.
The property which is granted an exemption and/or abatement
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 ordinances, regulations, and safety codes of the Township.
Property which is determined to be in violation of any ordinance,
regulation, and/or safety code of the Township shall be subject to
any penalties and fines, or any other remedial action permitted by
state law.
Any amendment to this article shall not affect any exemption,
abatement, or tax agreement previously granted and in force prior
to the amendment.
In the event that any provision of this article or the application
thereof to any person or circumstance is declared invalid by a court
of competent jurisdiction, such declaration of invalidity shall not
affect any other provision or application of this article which may
be given effect, and, to realize this intent, the provisions and applications
of this article are declared to be severable.
