The recitals set forth above are incorporated herein as if set
forth in length.
All terms utilized in this article not specifically defined
herein shall conform to the meanings set forth in the Exemption Law. For ease of reference, the definitions set forth in the
Exemption Law as of the date of the adoption of this article are attached
hereto as Exhibit B. However, if the definitions set forth in the
Exemption Law shall be subsequently amended, then the Exemption Law,
and not Exhibit B, shall control.
The Town hereby determines to utilize the authority granted
under Article VIII, Section I, Paragraph 6 of the New Jersey Constitution
to establish the eligibility of certain dwellings, commercial structures,
and industrial structures for exemptions, as provided in this article
and as permitted by the Exemption Law, throughout the Downtown Historic
District.
The Town hereby determines to provide for the exemption from
taxation of certain improvements and certain new construction occurring
within the Downtown Historic District. To the extent that a property
owner shall apply to the Town's Tax Assessor (the "Tax Assessor")
within the time period prescribed by the New Jersey Department of
Treasury in accordance with the Exemption Law, which currently requires
submission within 30 calendar days following completion of the improvements
or construction for which the exemption is sought, and shall provide
documentation to the Tax Assessor, in a form and manner acceptable
to the Tax Assessor and consistent with the Exemption Law, of compliance
with this section, such property owner shall be entitled to the relevant
exemption enumerated herein without any need for action by the Town
Council.
A. Residential: improvements. The Town hereby determines to provide
for the exemption from taxation of certain improvements made to dwellings,
on the following terms and conditions:
(1) The term "dwelling," for purposes of this Subsection
A, shall include condominium residential units but not cooperative type residential properties.
(2) The term "dwelling," for purposes of this Subsection
A, shall not include "multiple dwellings," as defined by the Exemption Law.
(3) Only dwellings that are more than 20 years old shall be eligible
for exemption.
(4) The term "improvements," for purposes of this subsection, 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 structure as a place for human habitation, and which does not
change its permitted use.
(5) To the extent that a dwelling shall comply with the requirements set forth at Subsection
A(1) through
(5), above, in determining the value of real property for each dwelling unit, the Town shall regard the first $15,000 in the Tax Assessor's full and true value of improvements for each dwelling unit primarily and directly affected by the improvements as not increasing the value of the property for a period of five years, notwithstanding the value of the property to which the improvements are made is increased thereby. During the exemption period, the assessment on any property pursuant to this subsection shall not be less than the assessment thereon existing immediately prior to the improvements, except if there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
B. Residential: new construction. The Town hereby determines to provide for an exemption of 30% of the Tax Assessor's full and true value for a period of five years following construction of new dwellings. The term "dwelling," for purposes of this Subsection
B, shall include condominium residential units but not cooperative type residential units, and shall not include multiple dwellings. This exemption is to be granted notwithstanding the value of the property upon which the construction occurs is increased thereby.
C. Residential: improvements to multiple dwellings.
(1) The Town hereby determines to provide for an exemption of 100% of
the Tax Assessor's full and true value for a period of five years
following the construction of improvements to multiple dwellings.
The term "multiple dwelling" shall have that meaning ascribed to it
by the Exemption Law. The definition of "multiple dwelling" set forth
in the Exemption Law as of the date of adoption of this article is
set forth at Exhibit B, attached hereto.
(2) This exemption is to be granted notwithstanding the value of the property upon which the construction occurs is increased thereby. During the exemption period, the assessment on any property pursuant to this Subsection
C shall not be less than the assessment thereon existing immediately prior to the improvements, except if there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction.
D. Commercial: improvements. The Town hereby determines to provide for
the exemption from taxation of certain improvements made to commercial
structures, on the following terms and conditions:
(1) For purposes of this article, the term "commercial structure" relates
to office, retail and like uses, but does not include multiple dwellings.
(2) For purposes of this article, the term "commercial structure" shall
include a structure which contains both residential units and some
other commercial use (for example, retail), provided the structure
is not part of a condominium or cooperative regime and further provided
the structure does not qualify as a multiple dwelling under the Exemption
Law.
(3) To the extent that improvements to a commercial structure shall comply with the requirements set forth at Subsection
D(1) and
(2), above, the Town hereby determines to provide for an exemption of 100% of the Tax Assessor's full and true value for a period of five years following the construction of the improvements. This exemption is to be granted notwithstanding that the value of the property upon which the construction of the improvement occurs is increased thereby.
E. Industrial: improvements. The Town hereby determines to provide for
the exemption from taxation of certain improvements made to industrial
structures, on the following terms and conditions:
(1) Improvements must be made to both the interior and exterior of a
structure in order to qualify for exemption under this section.
(2) Only improvements with a cost of less than $1,000,000 shall be eligible
for exemption under this section.
(3) No less than 25% of the improvement cost shall be attributable to
the exterior improvements.
(4) To the extent that improvements to an industrial structure shall comply with the requirements set forth at Subsection
E(1) through
(3), above, the Town hereby determines to provide for an exemption of 100% of the Tax Assessor's full and true value for a period of five years following the construction of the improvements. This exemption is to be granted notwithstanding that the value of the property upon which the construction of the improvement occurs is increased thereby.
(5) To the extent that improvements to a commercial structure do not comply with one or more of Subsection
E(1) through
(3), above, a property owner is not eligible for exemption under this section but may apply to the Town for consideration of the proposed exemption in accordance with §
279-12 hereof.
The Town hereby determines that an additional improvement or
construction completed on a property already granted a previous exemption
pursuant to this article during the period in which the previous exemption
is in effect shall be eligible to qualify for an additional exemption
under the standards identified in this article. The additional improvement
or construction shall be considered as separate for purposes of calculating
the exemption, except the assessed value of any previous improvement
or construction shall be added to the assessed valuation as it was
prior to that improvement or construction for the purpose of determining
the assessed value of the property for which any additional exemption
is to be subtracted.
No exemption 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.
In the event the Town implements a revaluation or reassessment
during the exemption period for any property, any exemptions granted
hereunder shall continue to apply but at a valuation level consistent
with the revaluation or reassessment.
The granting of an exemption for a particular property shall
not prejudice the right of the Town to appropriately examine and revise
the assessment during the five-year exemption period in the event
the base assessment is found to be improperly valued and assessed.
Upon final passage and publication as provided by law, this
article shall take effect on October 1, 2021, and shall authorize
the Town to grant exemptions up to a five-year period. This article
shall lapse, unless readopted, on September 30, 2026, and no exemptions
shall be granted after September 30, 2026, without such readoption.
Any and all previous ordinances adopted by the Town relating
to the Exemption Law are hereby superseded by this article.