[Adopted 8-23-2011 by Ord. No. 5206[1] (Ch. 487, Art. II, of the 2004 Code)]
[1]
Editor's Note: This ordinance also provided that a certified
copy be forwarded to the Department of Community Affairs of the State
of New Jersey.
[Amended 10-25-2016 by Ord. No. 5401]
There is hereby established a program, pursuant to N.J.S.A.
40A:21-1 et seq., commonly known as the "Five-Year Exemption and Abatement
Law," of tax exemptions for construction, conversion and improvement
of properties in the Union Township Special Improvement District and
the Crossroads Garden Apartment Rehabilitation Area in accordance
with the provisions hereof.
The following words shall have the following meanings consistent
with the provisions of N.J.S.A. 40A:21-1 et seq.:
That portion of the assessed value of a property as it existed
prior to construction or improvement of a building or structure thereon,
which is exempted from taxation pursuant to this Act. No tax abatements
are intended to be permitted herein.
A structure or part thereof used for office, commercial,
retail, recreational, hotel or motel facilities, or for any combination
thereof, which the governing body determines will tend to maintain
or provide gainful employment within the municipality, assist in the
economic development of the municipality, maintain or increase the
tax base of the municipality and maintain or diversify and expand
commerce within the municipality.
Substantially ready for the intended use for which a building
or structure is constructed or improved.
A property created or recorded as a condominium pursuant
to the New Jersey Condominium Act, P.L. 1969, c. 257 (N.J.S.A. 46:8B-1
et seq.).
[Added 10-25-2016 by Ord.
No. 5401]
The provision of a new commercial structure, or the enlargement
of the volume of an existing commercial structure by more than 30%,
but shall not mean the conversion of an existing building or structure
to another use.
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 above the first floor.
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.
[Added 10-25-2016 by Ord.
No. 5401]
The property commonly known as "Block 405, Lots 19 and 57"
on the Tax Map of the Township of Union that has been designated as
an area in need of rehabilitation pursuant to the Local Redevelopment
and Housing Law, P.L. 1992, c. 79 (N.J.S.A. 40A:12A-1 et seq.).
[Added 10-25-2016 by Ord.
No. 5401]
That portion of the Assessor's full and true value of any
improvement or construction not regarded as increasing the taxable
value of a property pursuant to this article and the Five-Year Exemption
and Abatement Law, N.J.S.A. 40A:21-1 et seq.
A property submitted to a horizontal property regime pursuant
to the Horizontal Property Act, P.L. 1963, c. 168 (N.J.S.A. 46:8A-1
et seq.).
[Added 10-25-2016 by Ord.
No. 5401]
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,
the cost of which improvement shall exceed $100,000, and which does
not change its permitted use to a use that is not permitted; provided,
however, that in the case of an improvement to a multiple dwelling
in the Crossroads Garden Apartment Rehabilitation Area, there shall
be no minimum investment required in order to be deemed an improvement
under this article. In no case shall it include the repair of fire
or other damage to a 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 article and the Five-Year Exemption and Abatement Law, N.J.S.A.
40A:21-1 et seq.
[Added 10-25-2016 by Ord.
No. 5401]
A structure with two or more different uses such as, but
not limited to, residential and commercial.
A building or structure meeting the definition of "multiple
dwelling" set forth in the Hotel and Multiple Dwelling Law, P.L. 1967,
c. 76 (N.J.S.A. 55:13A-1 et seq.), which means, for the purpose of
improvement or construction, the "general common elements" and "common
elements" of a condominium, a cooperative, or a horizontal property
regime.
[Added 10-25-2016 by Ord.
No. 5401]
[1]
Editor's Note: The abbreviation "ANR" means an "area in need
of rehabilitation," according to the preamble of Ord. No. 5206.
A.
Applicants for tax exemption for construction (as defined in § 550-7, the definition of "construction") of commercial structures, or dwellings or multiple dwellings in mixed-use structures, shall enter into a tax agreement pursuant to § 550-11 and shall provide the Tax Assessor and the Township Committee with an application on a project basis pursuant to N.J.S.A. 40A:21-1 et seq., setting forth:
(1)
A general description of the
project for which exemption is sought;
(2)
A legal description of all
real estate necessary for the project;
(3)
Plans, drawings, and other
documents as may be required by the Township Committee to demonstrate
the structure and design of the project;
(4)
A description of the number,
classes, and types of employees to be employed at the project site
within two years of completion of the project;
(5)
A statement of the reasons
for seeking tax exemption on the project, and a description of the
benefits to be realized by the applicant if a tax agreement is granted.
(6)
Estimates of the cost of completing
such project;
(7)
A statement showing:
(a)
The real property taxes
currently being assessed at the project site;
(b)
Estimated tax payments
that would be made annually by the applicant on the project during
the period of the agreement; and
(c)
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;
(8)
A description of any lease
agreements between the applicant and proposed users of the project,
and a history and description of the user's business; and
(9)
Such other pertinent information
as the Township Committee may require.
(10)
Any other information required
by N.J.S.A. 40A:21-9.
B.
Copies of the application and
accompanying information shall simultaneously be filed with the Tax
Assessor, Township Clerk, Township Administrator, Planning Board and
Department of Economic Development.
A.
All conversions or improvements, as defined in § 550-7, of commercial structures, dwellings or multiple dwellings in mixed-use structures or multiple dwellings in the Crossroads Garden Apartment Rehabilitation Area shall be eligible for exemption (but not abatement) from local real property taxes, in accordance with N.J.S.A. 40A:21-1 et seq., for a period of five years if approved by the Tax Assessor after proper application has been made pursuant to such statutes. Application shall be made upon the forms prescribed by the Director of the Division of Taxation in the Department of the Treasury and shall be in compliance with any and all regulations adopted by the Commissioner of the Department of Community Affairs.
[Amended 10-25-2016 by Ord. No. 5401]
B.
Applicants shall be encouraged
to apply for tax exemption on improvements and conversions prior to
the commencement of construction of the improvement or construction,
provided that the applicant must file a proper application with the
Tax Assessor within 30 days, including Saturdays and Sundays, following
the completion of the improvement in order to be eligible for tax
exemption thereon. The Tax Assessor will simultaneously file copies
of the application with the Township Clerk, Township Administrator,
Planning Board and Department of Economic Development.
C.
Every properly completed application
for exemption of one or more improvements or conversions, which is
filed within 30 days including Saturdays and Sundays of the completion
of the improvement, shall be approved and allowed by the Assessor
to the degree that the application is consistent with the provisions
of this article, provided that the improvement or conversion for which
the application is made qualifies as an improvement or a conversion
pursuant to the provisions of the Five-Year Exemption and Abatement
Law, L. 1991, c. 441 (N.J.S.A. 40A:21-1 et seq.), and this article.
The granting of an exemption shall be recorded and made a permanent
part of the official tax records of the Township, which records shall
contain a notice of determination date thereof.
D.
In determining the value of real property in which there are one or two residential units and for which exemption is granted, the Township shall regard the first $25,000 in the 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 there is damage to the dwelling through action of the elements sufficient to warrant a reduction. The determination of value for all other improvements, conversions or construction for real property in which there are more than two residential units or for commercial structures shall be as provided in § 550-10.
[Amended 10-25-2016 by Ord. No. 5401]
In determining the value of property, the Township shall regard
up to the Assessor's full and true value of the improvements, conversion
or construction, as defined herein, 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 this exemption period, the assessment on the property
shall not be less than the assessment thereon existing immediately
prior to the improvements, unless there is damage to the structure
through action of the elements sufficient to warrant a reduction.
The granting of an exemption 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 is granted, and shall continue
for five annual periods from that date. The grant of the exemption
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.
A.
The Township Committee may, for a particular project, enter into a written agreement with the applicant for the exemption of increases in local real property taxes which would be attributable to new construction as defined in § 550-7, the definition of "construction." The agreement shall provide for the applicant to pay to the municipality in lieu of full property tax payments an amount annually to be computed by the following formula:
(1)
Tax phase-in basis: The agreement
shall provide for the applicant to pay to the municipality in addition
to the property taxes which would be otherwise due based on the property
tax assessment prior to construction an amount in lieu of full property
tax payments equal to a percentage of increased taxes otherwise due
based on the construction, according to the following schedule:
(a)
In the first full year
after completion; no payment in lieu of taxes otherwise due;
(b)
In the second tax year,
20% of taxes otherwise due;
(c)
In the third tax year,
40% of taxes otherwise due;
(d)
In the fourth tax year,
60% of taxes otherwise due; and
(e)
In the fifth tax year,
80% of taxes otherwise due.
B.
The exemption and payment in
lieu of taxes shall not apply to that portion of the assessed value
of a property as it existed prior to construction or improvement of
a building or structure thereon. The assessment on such portion shall
remain unaffected and taxes on such portion shall remain unaffected.
The property shall be so treated for the year beginning as of the
date of completion of the construction and for each of the four tax
years subsequent to the original determination by the Assessor and
shall be prorated for the final tax year in which the exemption expires.
C.
Within 30 days after the execution
of any tax agreement, the Municipal Clerk shall forward a copy of
same to the Director of the Division of Local Government Services
in the Department of Community Affairs.
An additional improvement or construction, completed on a property
granted a previous exemption during the period in which such previous
exemption is in effect, shall be qualified for an exemption, just
as if such property had not received a previous exemption. In such
case, the additional improvement or construction shall be considered
as separate for the purposes of calculating exemptions, except that
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 valuation
of the property from which any additional exemption is to be subtracted.
The Assessor shall determine, on October 1 of the year following
the date of the completion of an improvement, conversion or construction,
the true taxable value thereof. Except for projects subject to tax
agreement, pursuant to N.J.S.A. 40A:21-9 to 40A:21-12 and 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, prorated, plus any portion of the assessed
valuation of the improvement, conversion or construction not allowed
an exemption pursuant to this article and N.J.S.A. 40A:21-1 et seq.,
also prorated. The property shall continue to be treated in the appropriate
manner for each of the four tax years subsequent to the original determination
by the Assessor and shall be prorated for the final tax year in which
the exemption expires.
At the termination of a tax exemption agreement, a project shall
be subject to all applicable real property taxes as provided by state
law and local ordinance.
No application for tax exemption shall be accepted by the municipality
unless accompanied by full payment of the required application fee.
Such fees shall be 1% of the estimated total project cost. These fees
shall be received as compensation for the legal review and related
work of the municipality's departments and agencies.
If during any tax year prior to the termination of the tax exemption
agreement, the applicant ceases to operate or disposes of the property
or otherwise fails to meet the conditions of eligibility, the tax
otherwise due if there had been no abatement or exemption shall become
due and payable by the property owner. The Tax Assessor shall notify
the property owner and the Tax Collector forthwith and the Tax Collector
shall within 15 days thereof notify the owner of the property of the
amount of taxes due. Where, however, with respect to sale or other
disposal of the property it is determined that the new owner of the
property will continue to use the property pursuant to the conditions
which were set forth in the tax exemption agreement, the exemption
shall continue pursuant to N.J.S.A. 40A:21-12.
No exemption shall be granted, or tax agreement entered into,
pursuant to this article or the statute authorizing this article,
with respect to any property for which property taxes are delinquent
or remain unpaid, or for which penalties for nonpayment of taxes are
due.
All tax agreements entered into by the Township of Union pursuant
to this article shall be in effect for no more than five full tax
years next following the date of completion of the project.
Nothing contained in this article shall be construed to alter
or amend any land use or development regulation of the Township of
Union or to exempt any applicant from any provision of federal, state
or local laws not expressly set forth herein.
Every application for exemption and every exemption granted
shall be subject to all the provisions of N.J.S.A. 40A:21-1 et seq.,
and all rules and regulations issued thereunder.
