[Ord. No. 2015-26]
The intention of this article is to effectuate and accomplish
the purpose authorized by N.J.S.A. 40A:21-1, et seq., which permits
municipalities to grant for periods of five years exemptions and/or
abatements, or both, from taxation in areas of the municipality in
need of rehabilitation. The intended purpose of this article is to
promote the improvement and/or rehabilitation of existing residential
dwellings within the Borough, which will promote long-term growth
and redevelopment that will positively impact the character and quality
of life of the citizens of the Borough. This article has been prepared
in accordance with the "Five-Year Exemption and Abatement Law," N.J.S.A.
40A:21-1, et seq.
[Ord. No. 2015-26]
As used in this article, the following terms shall have the
meanings indicated:
That portion of the assessed value of a property as it existed
prior to construction, improvement, or conversion of a building or
structure thereon, which is exempted from taxation pursuant to this
article.
A portion or all of the Borough which has been determined
to be an area in need of rehabilitation or redevelopment pursuant
to the "Local Redevelopment and Housing Law." P.L. 1992, c. 79 (C.
40A:12A-1, et al.), a "blighted area" as determined pursuant to the
"Blighted Areas Act." P.L. 1949, c. 187 (C. 40:55-21-1, et seq.),
or which has been determined to be in need of rehabilitation pursuant
to P.L. 1975, c. 104 (C. 54:4-3.72, et seq.), P.L. 1977, c. 12 (C.
54:4-3.95, et seq.) or P.L. 1979, c. 233 (C. 54:4-3.121, et seq.).
The Municipal Tax Assessor serving the Borough, who is charged
with the duty of assessing real property for the purposes of general
taxation.
The Borough of Hightstown.
Substantially ready for the intended use for which a building
or structure is constructed, improved, or converted.
A property created or recorded as a condominium pursuant
to the 'Condominium Act," P.L. 1969, c. 257 (C. 46:8B-1, et seq.).
The provision of new improvements to a dwelling located within
the Borough.
The alteration or renovation of nonresidential building or
structure, or hotel, motel, motor hotel, or guest house, in such manner
as to convert the building or structure from its previous use to use
as a dwelling or multiple dwelling.
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.
A building or part of a building used, or to be used or held
for use as a home or residence, including accessory buildings located
on the same premises, together with the land upon which such building
or buildings are erected and which may be necessary for the fair enjoyments
thereof, but shall not mean any building or part of a building defined
as a "multiple dwelling" pursuant to the "Hotel and Multiple Dwelling
Law," P.L. 1967, c. 76 (C. 55:13A-1, et seq.). A dwelling shall include,
as they are separately conveyed to individual owners, individual residences
within a cooperative, if purchased separately by the occupants thereof,
and individual residences within a horizontal property regime or a
condominium, but shall not include "general common elements" or "common
elements" of such horizontal property regime or condominium as defined
pursuant to the "Horizontal Property Act," P.L. 1963, c. 168 (C. 46:8A-1,
et seq.), or the "Condominium Act," P.L. 1969, c. 257 (C. 46:8B-1,
et seq.), or of a cooperative, if the residential units are owned
separately.
That portion of the assessor's full and true value of any
improvement, conversion alteration, or construction not regarded as
increasing the taxable value of a property pursuant to this article.
A property submitted to a horizontal property regime pursuant
to the "Horizontal Property Act," P.L. 1963, c. 168 (C. 46:8A-1, et
seq..
A modernization, rehabilitation, renovation, alteration or
repair, through construction, which produces a physical change in
an existing dwelling that improves the safety, sanitation, decency
or attractiveness of the dwelling as a place for human habitation,
and which does not change its permitted use. In the case of a multiple
dwelling, it includes only improvements which affect common areas
or elements, or three or more dwelling units within the multiple dwelling.
In the case of a multiple dwelling, 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 Act.
A building or structure meeting the definition of "Multiple
Dwelling" set forth in the "Hotel and Multiple Dwelling Law," P.L.
1967 c. 76 (C. 55:13A-1, et seq.), and means for the purpose of improvement
or construction the "General Common Elements" and "Common Elements"
of a condominium, a cooperative, or a horizontal regime.
[Ord. No. 2015-26]
The Borough Council hereby finds and declares that the entire
area within the municipal boundaries of the Borough of Hightstown
is an "area in need of rehabilitation" pursuant to the terms of this
article.
[Ord. No. 2015-26]
There is hereby authorized within the "area in need of rehabilitation"
referenced above the ability of taxpayers to obtain exemption(s) from
taxation as follows:
A.
Improvements to Existing Dwellings.
(1)
An exemption from taxation is hereby authorized for improvements
undertaken to existing dwellings within the Borough pursuant to the
terms and conditions contained within this article. For the purposes
of this article, the term "existing dwellings" shall not include the
construction of new dwelling(s) on any property where the previous
structure(s) or dwelling(s) on any property were demolished in their
entirety or where less than 60% of the original square footage remains.
(2)
Such exemption shall be permitted for improvements made to any existing
dwelling that is more than 20 years old.
(3)
Such exemption shall be authorized to the extent of the first $25,000
in Assessor's full and true value of improvements for each existing
dwelling unit primarily and directly affected by the improvements.
(4)
The exemption shall last for a period of five years, commencing as
of the date of completion of the improvements.
(5)
Such exemption shall permit the improvements to not increase the
value of the property notwithstanding the fact that the value of the
property to which the improvements are made is increased thereby.
(6)
During the exemption period, the assessment on the property shall
not be less than the assessment existing thereon immediately prior
to the improvements, unless there is damage to the dwelling through
action of the elements sufficient to warrant a reduction.
B.
Criteria for Exemption of Dwellings. In addition to the provisions
set forth above, improvements to existing dwellings shall be eligible
to receive a five-year exemption, as provided in this article, upon
meeting the following qualifications:
(1)
All real estate taxes and other municipal charges must be current.
(2)
The applicant must provide a Certificate of Occupancy or any other
permit or approval required by the Borough.
(3)
The applicant must submit proof of ownership. Proof submitted must
be current and valid at the time of submission.
[Ord. No. 2015-26]
The Assessor shall determine, on October 1st of the year following
the date of the completion of an improvement, the true taxable value
thereof. The amount of tax to be paid for the first full tax year
following completion shall be based on the assessed valuation of the
property not allowed an exemption pursuant to this article. The property
shall continue to be treated in the appropriate manner for a period
of five years measured from the date of completion of the improvements.
[Ord. No. 2015-26]
There is hereby authorized within the Borough the ability of
taxpayers to obtain exemption(s) from taxation relating to any additional
improvement(s) completed on a property granted a previous exemption
pursuant to this article during the period in which such previous
exemption is in effect. As such, additional improvement(s) shall be
entitled to an exemption just as if such property had not received
a previous exemption. In such case, the additional improvement(s)
shall be considered as separate for the purposes of calculating exemptions
pursuant to this article.
[Ord. No. 2015-26]
No exemption shall be granted pursuant to this article except
upon written application therefor filed with and approved by the Borough
Assessor. Every application shall be on a form prescribed by the Director
of the Division of Taxation in the Department of Treasury, and provided
for the use of claimants by the Borough, and shall be filed with the
Assessor within 30 days, including Saturdays and Sundays, following
the completion of the improvement. Every application for exemption
which is filed within the time specified shall be approved and allowed
by the Assessor to the degree that the application is consistent with
the provisions of this article. The granting of an exemption shall
be recorded and made a permanent part of the official tax records
of the Borough, which records shall contain a notice of the termination
date thereof.
[Ord. No. 2015-26]
The exemption of real property taxes provided pursuant to this
article shall apply to property taxes levied for municipal purposes,
school purposes, fire district purposes, County government purposes
and for the purpose of funding any other property tax exemption.
[Ord. No. 2015-26]
During the first year following adoption of this article, an
appropriate notice shall be included in the mailing of annual property
tax bills to each taxpayer of the Borough notifying the public that
tax exemptions may be permitted for the improvement and/or rehabilitation
of existing residential dwellings within the Borough pursuant to the
provisions of this article. The notice shall advise the public that
applications for exemption may be made immediately.
[Ord. No. 2015-26]
The Borough Council shall report, on or before October 1st of
each year, 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 Treasury the total amount
of real property taxes exempted within the Borough in the current
tax year for improvements to existing dwellings.
[Ord. No. 2015-26]
No applications shall be filed with or granted by the Borough
for exemption(s) pursuant to this article to take initial effect for
the 11th full tax year following the initial adoption of this article,
or to take initial effect for any tax year occurring thereafter, unless
this article has been readopted by the Borough Council prior to the
said 11th tax year.
[Ord. No. 2015-26]
The provisions of this article shall only apply to improvements
undertaken pursuant to construction permits issued by the Borough,
applications for which were submitted subsequent to the effective
date of this article.
