[Adopted 3-10-2022 by Ord. No. 2022-7]
The Borough of Newfield hereby authorizes the utilization of
tax exemption in accordance with Article VIII, Section I, Paragraph
6, of the New Jersey Constitution and establishes the eligibility
of, inter alia, residential dwellings and multiple dwellings for five-year
tax exemptions and abatements to the maximum degree permitted by N.J.S.A.
40A:21-1 et seq. in any area within the Borough located within an
area designated as an area determined to be in need of rehabilitation.
As used in this article, the following terms shall mean:
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.
The Municipal Administrator of the Borough of Newfield.
A portion of the Borough of Newfield designated as an area
in need of rehabilitation or redevelopment pursuant to the Local Redevelopment
and Housing Law, N.J.S.A. 40A:12A-1 et seq. (P.L. 1992, c. 79).
The Tax Assessor for the Borough of Newfield charged with
the duty of assessing real property for the purpose of general taxation.
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, N.J.S.A. 46:8B-1 et seq. (P.L. 1969, c. 257).
The provision of a new dwelling, multiple dwelling, or the
enlargement of the volume of an existing multiple dwelling structure
by more than 30%, but 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.
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, 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 enjoyment
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, N.J.S.A. 55:13A-1 et seq. (P.L. 1967, c. 76). 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 or a condominium[1], but shall not include general common elements or common
elements of such or condominium.[2]
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 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 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 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.
A.
Improvements to dwellings more than 20 years old are eligible for
tax exemption for a period of five years. This exemption is subject
to the approval of the Administrator and the Tax Assessor.
B.
Upon approval, the Borough 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 improvements as not increasing
the value of the property, notwithstanding that the value of the property
to which the improvements are made is increased thereby.
C.
In addition to the exemption afforded pursuant to this section, the Assessor may grant an abatement of some portion of the assessed value of property receiving the exemption as it existed immediately prior to the improvement for a total of up to five years, but the annual amount of the abatement shall not exceed 30% of the annual amount of the exemption granted under § 266-13B.
D.
During the exemption period, the assessment on the property shall not be less than the assessment existing thereon immediately prior to the improvements, unless an abatement is granted pursuant to § 266-13C or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
A.
Construction of new dwellings or conversions of other buildings and
structures, including unutilized public buildings, to dwelling use
are eligible for tax exemption for a period of five years. This exemption
is subject to the approval of the Administrator and Tax Assessor.
B.
Upon approval, the Borough shall regard up to 30% of the Assessor's
full and true value of the dwelling constructed or conversion alterations
made as not increasing the value of the property for a period of five
years. This exemption is to be granted notwithstanding that the value
of the property upon which the construction or conversion occurs is
increased thereby.
C.
In addition to the exemption afforded pursuant to this section, the
Assessor may grant an abatement of some portion of the assessed value
of property receiving the exemption as it existed immediately prior
to the construction or conversion alteration for a total of up to
five years, but the annual amount of the abatement shall not exceed
30% of the total cost of the construction or conversion alteration,
and the total amount of abatements granted to any single property
shall not exceed the total cost of the construction or conversion
alteration.
D.
During the exemption period, the assessment on the property shall not be less than the assessment existing thereon immediately prior to the improvement or conversion alteration, unless an abatement is granted pursuant to § 266-14C, or there is damage to the property through action of the elements sufficient to warrant a reduction.
Improvements to a residential property resulting from a renovation
housing project, as defined under Subsection (c) of N.J.S.A. 40A:12A-14,
as amended, are eligible for an abatement or exemption from taxation.
In determining the value of real property, the municipality shall
regard up to and including the Assessor's full and true value
of the improvements as not increasing the taxable value of the property
for a period of five years, notwithstanding that the market 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 immediately prior to the improvement
affecting the value of the property, unless there is damage to the
structure through action of the elements sufficient to warrant a reduction.
No exemption or abatement may be granted under this section if the
improvement giving rise thereto directly affects more than three residential
units.
Improvements to a residential property that is a single-family
dwelling, resulting from a renovation housing project, as defined
under Subsection (d) of N.J.S.A. 40A:12A-14, as amended, are eligible
for an abatement or exemption from taxation. In determining the value
of real property, the municipality shall regard up to and including
the Assessor's full and true value of the improvements as not
increasing the taxable 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 immediately prior to the improvements.
A.
Improvements to multiple dwellings or conversions of other buildings
and structures, including unutilized public buildings, to multiple-dwelling
use are eligible for tax exemption for a period of five years. This
exemption is subject to the approval of the Administrator and the
Tax Assessor.
B.
Upon approval, the Borough shall regard up to 30% of the Assessor's
full and true value of the improvements or conversion alterations
as not increasing the value of the property for a period of five years.
C.
In addition to the exemption afforded pursuant to this section, the
Assessor may grant an abatement of some portion of the assessed value
of property receiving the exemption as it existed immediately prior
to the improvement or conversion alteration for a total of up to five
years, but the annual amount of the abatement shall not exceed 30%
of the total cost of the improvement or conversion alteration, and
the total amount of abatements granted to any single property shall
not exceed the total cost of the improvement or conversion alteration.
D.
This exemption is to be granted notwithstanding that the value of the property to which the improvements or conversion alterations are made is increased thereby. During the exemption period, the assessment on the property shall not be less than the assessment existing thereon immediately prior to the improvement or conversion alteration, unless an abatement is granted pursuant to § 266-17C or there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction.
New constructions of multiple dwellings are eligible for tax exemption for a period of five years. This exemption may only be approved upon the filing of a formal application pursuant to § 266-19, by ordinance of the Borough Council and memorialized through the execution of a tax agreement setting forth the conditions of the abatement and/or exemption in accordance with the requirements of N.J.S.A. 40A:21-1 et seq.
A.
All applicants for tax exemption and abatement pursuant to §§ 266-13 through 266-18 of this article shall provide the Administrator, on behalf of Borough Council, with 10 copies of an application conforming with an application form adopted by the Administrator, setting forth the following information:
(1)
A general description of a 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 Borough
Council to demonstrate the structure and design of the project;
(4)
A description of the number, classes and type 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)
A good-faith estimate of the cost of completing such project, together
with the expected method or plan of financing the improvements;
(7)
A construction schedule;
(8)
A statement showing the real property taxes currently being assessed
at the project site, estimated tax payments that would be made annually
by the applicant on the project during the period of the tax agreement,
and estimated tax payments that would be made by the applicant on
the project during the first full year following the termination or
expiration of the tax agreement;
(9)
If the project is a multiple dwelling, a description of the number
and type of dwelling units to be provided, a description of the common
elements or general common elements and a statement of the proposed
initial rentals or sales prices of the dwelling units according to
type and of any rental lease or resale restrictions to apply to the
dwelling units respecting low- or moderate-income housing;
(10)
A disclosure statement of the interests of all parties, including
subsidiary companies, in the project;
(11)
Such other pertinent information as the Administrator and Borough
Council may require on a case-by-case basis; and
(12)
The owner shall sign the application and certify as to the truth
and accuracy of the contents thereof.
B.
Each application received shall be reviewed and approved by the Administrator and the Tax Assessor, except that, in the case of applications for exemptions pursuant to § 266-18, each such application shall be reviewed, in the first instance, by the Administrator and Tax Assessor and thereafter referred to Borough Council, with a recommendation as to whether the application should be granted, denied, or granted with conditions.
A.
The owner receiving an exemption or abatement under § 266-18 shall enter into a written agreement with the Borough to make payments in lieu of taxes on the project improvements in accordance with the following schedule:
(1)
Tax phase-in basis. The agreement may provide for the applicant to
pay to the Borough in lieu of full property tax payments on real property
improvements constructed in connection with the project in an amount
equal to a percentage of taxes otherwise due, according to the following
schedule:
(a)
In the first full tax year after completion, no payment in lieu
of taxes otherwise due.
(b)
In the second tax year, an amount not less than 20% of taxes
otherwise due.
(c)
In the third tax year, an amount not less than 40% of taxes
otherwise due.
(d)
In the fourth tax year, an amount not less than 60% of taxes
otherwise due.
(e)
In the fifth tax year, an amount not less than 80% of taxes
otherwise due.
B.
The agreement shall provide that the payment in lieu of taxes shall
be billed and collected in the same manner as any conventional taxes,
and any arrearages shall accrue at that rate of interest charged for
delinquent real estate taxes.
C.
The Tax Collector shall be responsible for the administration and
enforcement of the tax agreement. In the event that a property owner
subject to a tax agreement ceases to operate or disposes of the property
or fails to meet the conditions for qualifying for the exemption,
the local property taxes due for all the prior years subject to exemption
and for the current year shall be payable as if no exemption had been
granted. The Tax Collector shall notify the property owner and Borough
Council within 15 days of the date of disqualification of the amount
of taxes due. In the event that the subject property has been transferred
to a new owner and it is determined that the new owner will continue
to use the property pursuant to the qualifying conditions, no additional
tax shall be due, the exemption shall continue, and the agreement
shall remain in effect.
A.
An additional improvement, conversion, or construction, completed
on a property granted a previous exemption or abatement pursuant to
this article during the period in which such previous exemption or
abatement is in effect, shall be qualified for an exemption, or exemption
and abatement, just as if such property had not received a previous
exemption or abatement. In such case, the additional improvement,
conversion or construction shall be considered as separate for the
purposes of calculating exemptions and abatements pursuant to this
act, except that the assessed value of any previous improvement, conversion
or construction shall be added to the assessed valuation as it was
prior to that improvement, conversion alteration or construction for
the purpose of determining the assessed valuation of the property
from which any additional abatement is to be subtracted, except that
the Borough shall not consider any application for any additional
abatement or exemption for a property within six months of the approval
of the grant of any previous abatement or exemption for the same property
or within six months of the completion of any improvement, conversion,
or new construction as to which such previous grant of an abatement
or exemption relates.
The Municipal Clerk shall forward a copy of all tax exemption
agreements to the Director of the Division of Local Government Services
in the Department of Community Affairs within 30 days of the date
of execution.
A.
Every applicant for tax exemption, including a tax exemption subject to a tax agreement, shall file, in addition to the separate application described in § 266-19 above, that form of application prescribed by the Director of the New Jersey Division of Taxation in the Department of Treasury with the Tax Assessor. As a condition to approval, the application must be filed within 30 days, including Saturdays and Sundays, following the completion of the improvement, conversion, or construction. Every application for exemption, including those projects which must also receive the approval of Borough Council, so filed shall be approved and allowed by the Assessor to the degree that the application is consistent with the provisions of this article; that is, the improvement, conversion, alteration or construction for which the application is made must qualify pursuant to the provisions of the law and this article. The applicant shall submit data in support of the application as the Assessor or Borough shall require.
B.
The granting of an exemption and, if appropriate, 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.
D.
No exemptions shall be granted for any property for which property
taxes or any other municipal charges, including interest, are delinquent
or remain unpaid or for which penalties for nonpayment are due.
E.
All taxes and other municipal charges must be paid timely and in
full during the term of the exemption. The failure to timely pay any
tax or other municipal charge, including land tax, shall permit the
Tax Collector to terminate the tax exemption and subject the property
to full taxation.
F.
Any tax appeal filed for the exempt property during the term of the
exemption or abatement shall subject the exemption or abatement to
immediate termination by the Borough.
G.
All agreements entered into by the Borough pursuant to this article
shall commence on January 1 next following the date of completion
of the project and shall remain in effect for no more than five full
calendar years thereafter.
H.
The applicant/owner shall fully cooperate with the Borough as to
any audit of the value of the new construction and provide all information
requested by the Borough sought in furtherance of any such audit.
I.
All projects subject to tax agreement 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.
J.
Nothing herein shall be construed as to confer or permit an abatement
or exemption as to the land underlying a project for which an exemption
or abatement has been granted pursuant to this article.
K.
No abatement or exemption may be granted for improvements, conversion
or new construction except where the cost of same exceeds $15,000
for residential dwellings exceeds $25,000 in regard to multiple dwellings.
The Borough shall include the appropriate notice of this article
in the mailing of annual property tax bills to each owner of a dwelling
located in an area in which exemptions, or exemptions and abatements,
may be allowed pursuant to this article during the first year following
adoption of this article.
A.
Borough Council shall report, on or before October 1 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 the Treasury the total amount of
real property taxes exempted, and the total amount abated within the
municipality in the current tax year for each of the following:
B.
In the case of Subsection § 266-25A(5) and (6) above,[1] the report shall state instead the total amount of payments
made in lieu of taxes according to each formula utilized by the municipality
and the difference between that total amount and the total amount
of real property taxes which would have been paid on the project had
the tax agreement not been in effect, for the current tax year.
[1]
Editor's Note: So in original.
This article is hereby adopted in accordance with N.J.S.A. 40A:21-4.
No application for tax exemption or abatement shall be filed for an
exemption or abatement to take initial effect for the tax year commencing
2028 or any tax year thereafter, unless this article is readopted
by Borough Council in accordance with N.J.S.A. 40A:21-4.
