Editor's Note: Amended in entirety by Ord. No. 2021-998. Prior
history includes Ord. Nos. 96-614, 2003-728, 2005-753 and 2018-960.
[Added 4-19-2021 by Ord.
No. 2021-998]
a.
The Preamble hereinabove is hereby incorporated by reference herein.
b.
The Borough of Pine Hill may enter into agreements with applicants
for tax abatement on commercial and industrial projects and detached
single family senior citizen/age restricted housing which satisfy
the chapter requirements hereinafter set forth. The agreement shall
provide for an abatement from real property taxation on these projects
for a period of not more than five years. During such five-year period,
the agreement shall provide for payments to the Borough of Pine Hill
in lieu of full property taxes, which payment shall be calculated
as set forth hereinafter in this chapter. Applications for abatement
from taxation may be filed to take effect for the first full year
commencing after the tax year in which the authorizing ordinance is
adopted, and upon completion of the project for tax years thereafter
as set forth in P.L. 1991, C. 441 (N.J.S.A. 40A:21-1 et seq.), but
no application for tax abatement shall be filed for an abatement to
take initial effect for the 11th full tax year or any tax year occurring
thereafter unless this chapter is readopted by the Governing Body
of the Borough of Pine Hill.
[Added 4-19-2021 by Ord.
No. 2021-998]
To be considered for tax abatement a new commercial or industrial
structure must contain a minimum of 5,000 square feet of floor space
for use. The commercial or industrial structure may be divided into
ownership interests of less than 5,000 square feet as long as the
structure itself is at least 5,000 square feet. In this type structure
the initial applicant must seek tax abatement for the lesser ownership
interests, as may be approved by the Borough Planning Board, and any
future owner of the lesser interest shall meet the conditions which
initially qualified the property for tax abatement to continue to
receive this benefit. An enlargement of an existing commercial or
industrial structure must be more than 30% of the existing volume
of the structure as defined in N.J.S.A. 40A:21-9. An improvement to
an existing commercial or industrial structure must meet the requirements
as defined in N.J.S.A. 40A:21-3n.
To be considered for senior citizen housing, the project must
consist of detached single-family homes and be age restricted by deed
to 55 years or older and has been approved by the Borough Land Use
Board.
[Added 4-19-2021 by Ord.
No. 2021-998]
As used in this chapter, the following definitions shall apply:
The officer of the Borough of Pine Hill charged with the
duty of assessing real property for the purpose of general taxation.
A structure or part thereof used for the manufacturing, processing
or assembling of material or manufactured products, or for research,
office, industrial, commercial, retail, recreational, hotel or motel
facilities, or warehousing purposes, 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. It shall not include any structure or part
thereof used or to be used by any business relocated from another
qualifying municipality unless the total square footage of the floor
area of the structure or part thereof used or to be used by the business
at the new site together with the total square footage of the land
used or to be used by the business at the new site exceeds the total
square footage of that utilized by the business at its current site
of operation by at least 10%; and the property that the business is
relocating to has been the subject of a remedial action plan costing
in excess of $250,000 performed pursuant to an administrative consent
order entered into pursuant to authority vested in the Commissioner
of Environmental Protection.
Substantially ready for the intended use for which a building
or structure is constructed.
The development of a commercial or industrial structure or
the enlargement of the volume of an existing commercial or industrial
structure by more than 30%, but shall not mean the conversion of an
existing building or structure to another use. For a senior citizen
project, the development of detached single-family homes.
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,
and which does not change its permitted use. In the case of commercial
or industrial structures, it shall not include ordinary painting,
repairs and replacement of maintenance items, or an enlargement of
the volume of an existing structure by more than 30%. 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 chapter.
Commercial or industrial construction involving multiple
structures that are built separately.
Detached single family housing which is by Deed age restricted
to 55 years or older and approved as such a project by the Borough
Land Use Board. Any approval is subject to a Developer's Agreement,
a Financial Agreement and any other Agreement to be required in order
to receive tax abatement.
[Added 4-19-2021 by Ord.
No. 2021-998]
a.
A preliminary application is required to be filed with the Borough
of Pine Hill, with a copy to the Borough Governing Body, prior to
the issuance of a construction permit for the project. No construction
permit shall be issued to an applicant seeking tax abatement until
such time as the preliminary application has been filed in accordance
with the Borough ordinance requirements and the Construction Office
advised of same in writing by the Borough Tax Assessor. If a preliminary
application is not filed, said property will not be eligible for tax
abatement. In the event a construction permit is not issued within
one year from the date the preliminary application is filed, the preliminary
application shall be deemed null and void.
b.
Upon the filing of a preliminary application, the Borough Tax Assessor
will review said application to determine if it meets the requirements
of the Borough ordinance for abatement and a tax abatement agreement.
The Tax Assessor shall provide this determination to the Borough Governing
Body within 30 days of receipt of a properly completed preliminary
application. In the event the Tax Assessor determines that the application
meets the ordinance requirements, then the Borough Committee shall
adopt an ordinance authorizing a tax abatement agreement with the
applicant, subject to the following conditions:
1.
That the applicant shall file a final application for tax abatement
with the Tax Assessor in the form prescribed, within 30 days, including
Saturdays and Sundays, following completion of construction. A copy
of the final application shall also be filed with the Governing Body.
Failure to file shall automatically void the preliminary application
approval.
2.
The completed construction shall be in accordance with the original
Borough approvals on which the tax abatement agreement was initially
authorized based on the preliminary application.
3.
The applicant has continued to meet the requirements of the Borough
ordinance for tax abatement.
c.
Every properly completed final application for abatement shall be
evaluated for approval by the Borough Tax Assessor within 30 days
of filing. The Tax Assessor shall notify the Governing Body in writing
of the approved determination. Upon receipt of the written approval
from the Borough Tax Assessor a resolution shall be adopted for the
appropriate Borough officials to then proceed to execute the tax abatement
agreement previously authorized by the specific Ordinance adopted
as part of the preliminary application approval process. The applicant
shall be required to sign this tax abatement agreement prior to the
Borough signatories.
d.
For commercial and industrial projects, a separate application must
be filed for each building involved in phased projects. For a senior
citizen project an application must be filed by the developer or the
designated project builder.
e.
Except for a senior citizen project, in the event the use listed on the preliminary application is changed subsequent to the issuance of the construction permit for the project, Borough Council shall adopt an ordinance authorizing a tax abatement with the applicant, provide that the new one is of a type listed in § 26-7 as a qualifying project, that the applicant has submitted a revised preliminary application listing the new use, and that the Borough Tax Assessor determines that the revised preliminary application meets the requirements of this chapter.
[Added 4-19-2021 by Ord.
No. 2021-998]
The preliminary and final application must be on a form prescribed
by the Borough Tax Assessor and by the Director of the Division of
Taxation in the Department of Treasury, and shall provide the following
information:
a.
A general description of this project for which abatement is sought;
b.
A legal description of all real estate necessary for the project;
c.
Plans and drawings including a site layout on the total lot area,
and other documents as may be required by the Governing Body to demonstrate
the structure and design of the project;
d.
For commercial or industrial projects, a description of the number,
classes, types of employees and average estimated wages and salaries
by employee class, to be employed at the project site within two years
of the completion of the project; for a senior citizen project, the
form of end user deed restriction;
e.
A statement of the reasons for seeking tax abatement on the project,
and a description of the benefits to be realized by the applicant,
if tax abatement is granted;
f.
Estimates of the cost of completing such project;
g.
A statement showing:
1.
The real property taxes currently being assessed at the project site;
2.
Estimated tax payments that would be made annually by the applicant
on the project during the period of tax abatement; and
3.
Estimated tax payments that would be made by the applicant on the
project during the first year following the termination of the tax
abatement agreement.
h.
If applicable, 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;
i.
Proof of payment of taxes through the current quarter;
j.
If applicable, other pertinent data regarding the relationship, agreements
and status of other properties owned by the applicant within the Borough
of Pine Hill; and
k.
Such other pertinent information as the Governing Body may require.
[Added 4-19-2021 by Ord.
No. 2021-998]
a.
The applicant shall file a final application for tax abatement with
the Tax Assessor in the form prescribed, within 30 days, including
Saturdays and Sundays, following completion of construction. A copy
of the final application shall also be filed with the Governing Body
of the Borough.
b.
The completed construction shall be in accordance with the original
Borough; approvals on which the tax abatement agreement was initially
authorized based on the preliminary application.
c.
The applicant shall have continued to meet the requirements of the
Borough ordinance for tax abatement.
1.
Every properly completed final application for abatement shall be
evaluated for approval by the Borough Tax Assessor within 30 days
of filing. The Tax Assessor shall notify the Borough Governing Body
in writing of the approval determination. Upon receipt of the written
approval from the Borough Tax Assessor, the appropriate Borough officials
shall then proceed to execute the tax abatement agreement previously
authorized by the specific ordinance adopted as part of the preliminary
application approval process. The applicant shall be required to sign
this tax abatement agreement prior to the Borough signatories.
2.
For commercial and industrial projects, a separate application must
be filed for each building involved in phased projects. For a senior
citizen project, an application filed by the developer or the designated
project builder.
3.
Except for a senior citizen project, in the event the use listed on the preliminary application is changed subsequent to the issuance of the construction permit for the project, the Borough Governing Body shall adopt an ordinance authorizing a tax abatement with the applicant provided that the use is of a type listed in § 26-3 as a qualifying project, that the applicant has submitted a revised preliminary application listing the new use, and that the Borough Tax Assessor determines that the revised preliminary application meets the requirements of this chapter.
[Added 4-19-2021 by Ord.
No. 2021-998]
The following type projects/uses will be considered for Tax
Abatement by the Borough of Pine Hill:
a.
Light industrial, light manufacturing and indoor warehousing facilities
which are nonpolluting and nonnoxious;
b.
Scientific or industrial research engineering laboratory, testing
or experimental laboratory or similar establishment for research or
product development;
c.
Administrative offices;
d.
Wholesale distributorships;
e.
Experimental, research testing, dental or medical laboratories;
f.
Carpet or rug cleaning, laundry and dry cleaning;
g.
Job printing and newspaper or book publishing;
h.
Baking and food and dairy processing;
i.
Corporate and professional offices;
j.
General service and repair shops, including carpenter, cabinet making,
furniture repair, plumbing or similar shop;
k.
Office of a builder, carpenter, caterer, cleaner, decorator, electrician,
furrier, mason, painter, plumber, roofer, upholsterer and similar
businesses, excluding open storage of materials and excluding open
storage of motor vehicles;
l.
Veterinary hospital, provided that all animals are kept in a permanent
enclosed structure and are not within 150 feet of any existing residential
use or zone;
m.
Businesses and instructional school, including trade school;
n.
Nursing homes, philanthropic clinics, residential health care facilities
and convalescent centers;
o.
General commercial establishments permitted by zoning;
p.
Accessory uses on the same lot with and customarily incidental to
any of the above-permitted uses as approved by the Borough Land Use
Board;
q.
Charter schools; and
r.
Detached single family housing, age restricted by deed to 55 years
or older as approved by the Borough Land Use Board.
[Added 4-19-2021 by Ord.
No. 2021-998]
a.
All tax abatement agreements must be authorized by a separate ordinance
for each application.
b.
A tax abatement agreement shall provide for the applicant to pay
to the Borough in lieu of full property tax payments an amount annually
to be computed by the following formula:
1.
Tax Phase-In Basis. The applicant must pay to the Borough in lieu
of full property tax payments an amount equal to a percentage of taxes
otherwise due, according to the following schedule:
(a)
In the first full calendar year after completion, no payment in lieu
of taxes otherwise due;
(b)
In the second full calendar year, an amount not less than 20% of
taxes otherwise due;
(c)
In the third calendar year, an amount not less than 40% of taxes
otherwise due;
(d)
In the fourth calendar year, an amount not less than 60% of taxes
otherwise due;
(e)
In the fifth calendar year, an amount not less than 80% of taxes
otherwise due.
c.
All tax agreements entered into by virtue of this chapter shall be
in effect for no more than five full tax years next following the
date of completion of the project. Within 30 days of the execution
of a tax abatement agreement, the Borough shall forward a copy of
said agreement to the Director of the Division of Local Government
Services in the Department of Community Affairs.
d.
No exemption or abatement shall be granted, or tax agreement entered
into, with respect to any property for which property taxes are delinquent
or remain unpaid, or for which penalties for nonpayment of taxes are
due.
e.
If during any tax year prior to the termination of the tax agreement,
the property owner ceases to operate or disposes of the property,
or fails to meet the conditions for qualifying, then the tax which
would have otherwise been payable for each tax year shall become due
and payable from the property owner as if no abatement had been granted.
The property owner shall advise the Borough of any change in use or
ownership prior to same occurring. Failure to so advise shall be cause
to declare the property owner in breach of the tax abatement agreement.
The Borough Governing Body shall notify the property owner and the
Tax Collector of the disqualification, and upon such notice, the Tax
Collector shall within 15 days thereof notify the owner of the property
of the taxes due and payable to the Borough. With respect to the disposal
of property, where it is determined that the new owner of the property
will continue to use the property pursuant to the conditions which
qualified the property for tax abatement, no tax shall be due and
the agreement shall remain in effect. The new owner shall be required
to submit necessary information to the Tax Assessor to verify continuing
eligibility for the tax abatement benefit.
f.
At termination of the tax abatement agreement, the property shall
be subject to all applicable real property taxes as provided by law;
but nothing herein shall prohibit a project, at the termination of
an agreement, from qualifying for and receiving the full benefits
of any other tax preferences provided by law.
[Added 4-19-2021 by Ord.
No. 2021-998]
a.
All tax abatement agreements must be authorized by a separate ordinance
for the developer or designated project builder.
b.
The tax abatement agreement shall provide for the end user, upon
issuance of a Certificate of Occupancy, to pay to the Borough in lieu
of full property tax payments an amount annually to be computed by
the following formula:
1.
Tax Phase-In Basis. The end user must pay to the Borough in lieu
of full property tax payments an amount equal to a percentage of taxes
otherwise due, according to the following schedule:
(a)
In the first full calendar year after completion, no payment in lieu
of taxes otherwise due;
(b)
In the second full calendar year, an amount not less than 20% of
taxes otherwise due;
(c)
In the third calendar year, an amount not less than 40% of taxes
otherwise due;
(d)
In the fourth calendar year, an amount not less than 60% of taxes
otherwise due;
(e)
In the fifth calendar year, an amount not less than 80% of taxes
otherwise due.
c.
All tax agreements entered into by virtue of this chapter shall be
in effect for no more than five full tax years next following the
issuance of a Certificate of Occupancy. Within 30 days of the execution
of a tax abatement agreement with the developer or designated project
builder, the Borough shall forward a copy of said agreement to the
Director of the Division of Local Government Services in the Department
of Community Affairs.
d.
No exemption or abatement shall be granted, or tax agreement entered
into, with respect to any property for which property taxes are delinquent
or remain unpaid, or for which penalties for nonpayment of taxes are
due.
e.
The deed to the end user shall include a deed restriction identifying
the five-year tax abatement provided to the end user, said form of
deed to be approved by the Borough with the application for tax abatement
filed by the developer or designated project builder.
f.
At termination of the five year tax abatement provided to the end
user, the property shall be subject to all applicable real property
taxes as provided by law.
[Added 4-19-2021 by Ord.
No. 2021-998]
An additional improvement or construction completed on a property
granted a previous exemption or abatement during the period in which
such previous exemption or abatement is in effect shall be qualified
for an exemption and/or abatement just as if such property had not
received a previous exemption or abatement. In such case, the additional
improvements or construction shall be considered as separate for the
purposes of calculating exemptions and abatements, except that the
assessed value of any previous improvement or construction shall be
added to the assessed valuation of the property from which any additional
abatement is to be subtracted.
[Added 4-19-2021 by Ord.
No. 2021-998]
Every application for exemption or abatement and every exemption
and abatement granted shall be subject to all of the provisions of
N.J.S.A. 40A:21-1 et seq. and all rules and regulations issued thereunder.
[Added 4-19-2021 by Ord.
No. 2021-998]
All tax abatement and exemption agreements shall provide that
the applicant is subject to all federal, state and local laws and
regulations.
[Added 4-19-2021 by Ord.
No. 2021-998]
The percentage which the payment in lieu of taxes bears to the
property taxes which would have been paid had an abatement not been
granted for the property under the agreement shall be applied to the
valuation of the property to determine the reduced valuation of the
property to be included in the valuation of the municipality for determining
equalization for county appointment and school aid during the term
of the tax abatement agreement covering the property.
[Added 4-19-2021 by Ord.
No. 2021-998]
An application filing fee of $300 shall be paid by the applicant
at the time of filing the preliminary application. The application
fee will provide for the administrative services to be undertaken
by the Borough Tax Assessor, and any other Borough official, in order
to render a determination on the applicant's eligibility for
a tax abatement. The filing fee shall cover the cost for both the
preliminary application and final application review and determination
process.
[Added 4-19-2021 by Ord.
No. 2021-998]
a.
Every tax abatement agreement required by this chapter shall be subject to payment of a nonrefundable escrow in the amount of $500 to be paid by the applicant at the time the applicant submits a preliminary application to the Tax Assessor in accordance with § 26-5 of this chapter. The required escrow shall be used to pay the cost of professional review by the Borough Solicitor, Engineer, or the professionals employed by the Borough to review and make recommendations regarding the tax abatement agreement.
b.
At the time of submission of an application to the Borough Tax Assessor,
the applicant shall be required to execute an escrow agreement with
the Borough to cover all necessary and reasonable costs incurred for
the technical and professional review of the tax abatement agreement.
The amounts specified for escrow are estimates which shall be paid
prior to the Borough's review of the tax abatement application.
In the event an additional amount is required for more than the amount
specified in the escrow agreement, the applicant shall pay all additional
sums required prior to the Borough's execution of the tax abatement
agreement.
c.
To the extent not otherwise inconsistent with this section, the escrow fee required by this chapter shall be administered by the Chief Financial Officer of the Borough in the manner and as set forth generally in Chapter 23 of the Code of the Borough of Pine Hill, captioned "Land Use."
d.
The Borough Clerk or his/her designee shall maintain an itemized
account of the escrow on deposit for each application and shall, upon
the request of the applicant, supply a copy of said account.
