[HISTORY: Adopted by the Mayor and Council of the Borough
of Haddon Heights as indicated in article histories. Amendments noted
where applicable.]
[Adopted 9-20-2022 by Ord. No. 1523]
The definitions contained in N.J.S.A. 40A:21-3 are incorporated
herein by reference as if set forth at length, except as modified
or supplemented herein. As used in this article, words shall have
the meanings as so defined unless a different meaning is expressed.
COMPLETION
The issuance of a temporary certificate of occupancy, continuing
certificate of occupancy, final certificate of occupancy for the improvement
in question or other determination of completion by the Borough.
MIXED-USE STRUCTURE
A structure with two or more different uses such as, but
not limited to, residential, commercial, or industrial.
The Borough hereby authorizes the utilization of tax exemption
and abatement in accordance with Article VIII, Section I, Paragraph
6, of the New Jersey Constitution and establishes the eligibility
of dwellings, multiple, dwellings, mixed-use structures, commercial
and industrial structures for five-year tax exemptions and abatements
as authorized by N.J.S.A. 40A:21-1 et seq., throughout areas of the
municipality that have been declared in need of redevelopment or in
need of rehabilitation as permitted by statute and as set forth herein,
provided that the property is not ineligible pursuant to the provisions
of section of this article.
Improvements to one- or two-unit residential dwellings shall be eligible for tax exemption, pursuant to N.J.S.A. 40a:21-5a, provided the improvements meet the minimum eligibility requirements is §
417-16B. In determining the value of real property, the municipality will regard the first $25,000 in the assessor's full and true value of improvements for each dwelling unit primarily and directly affected in any dwelling more than 20 years old as not increasing the value of the property for a period of five years. The exemption period shall commence upon completion of the improvements. Notwithstanding the foregoing, the assessment on the property shall not be less than the assessment thereon existing immediately prior to the completion of the improvements.
A. Improvements to, or construction of, multiple dwellings are eligible for tax exemption. Multiple dwellings are buildings containing three or more residential units. Upon approval in accordance with the provisions of this article, the Assessor's full and true assessed value of the improvements shall be regarded as not increasing the value of the property for a period of five years commencing with the completion of an improvement, as defined in §
417-1, 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 existing thereon immediately prior to the improvement unless an abatement is granted pursuant to Subsection
B of this section, or there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction. As used in this section, "improvements" shall not be construed to include an increase in the number of dwelling units nor the reduction of the total number of dwelling units to less than three.
B. Improvements to, or construction of, multiple dwellings that have received a tax exemption pursuant to Subsection
A of this section may be eligible for a tax abatement. If approved by the Borough, the annual amount of the abatement shall be set forth in a tax agreement, but the amount of the abatement shall not exceed 30% of the total cost of the improvement construction or conversion alteration, and the total amount of the abatements granted to any single property shall not exceed the total cost of the construction or conversional alteration. The term of the abatement shall not exceed five years.
C. Any such exemption and abatement set forth in §
417-4 shall be subject to individual review, evaluation and approval by the governing body pursuant to N.J.S.A. 40A:21-7 and the owner and Borough entering into a tax agreement as provided by N.J.S.A. 40A:21-10, or otherwise.
A. Improvements to, or construction of, mixed-use, commercial and industrial
structures may be eligible for tax exemption for a period of five
years commencing with the completion of an improvement. Upon approval
in accordance with the provisions of this article, the Assessor's
full and true assessed value of the improvements shall be regarded
as not increasing the value of the property notwithstanding that the
value of the property to which the improvement is 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 improvements, unless there is damage to the structure
through action of the elements sufficient to warrant a reduction.
B. The exemption may only be granted after review, evaluation and approval
of each application by the governing body of the Borough. Any such
exemption shall be subject to individual review, evaluation and approval
by the governing body pursuant to N.J.S.A. 40A:21-7 and the owner
and Borough entering into a tax agreement as provided by N.J.S.A.
40A:21-10, or otherwise.
A. The applicant shall furnish to the municipality all the information required by N.J.S.A. 40A:21-9. In addition, every applicant shall file the application form 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, within 30 days, including Saturdays and Sundays, following the completion of the improvement, as defined in §
417-1. Every application for exemption so filed, for a one- or two-unit dwelling pursuant to §
417-3 hereof, 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 for which the application is made, qualifies as such, pursuant to the provisions of this article. The granting of an exemption or exemption and abatement and tax agreement, if appropriate, shall be recorded and made a permanent part of the official tax records of the taxing district, which record shall contain a notice of termination date thereof.
B. No tax exemption for a multiple-dwelling, mixed-use, commercial or industrial structure shall be granted unless approved by resolution of the Borough Council on an individual basis after review, evaluation and approval of each application and compliance with the terms of this article, the underlying statute, rules and regulations except as set forth in §
417-3 hereof.
C. The tax agreement for a multiple-dwelling, mixed-use, commercial
or industrial structure shall provide for the applicant to pay to
the Borough in lieu of full property tax payments an amount annually
to be computed by one, but in no case a combination, of the three
formulas set forth in N.J.S.A. 40A:21-10, viz., the cost, gross revenue,
or tax phase-in basis.
D. All tax agreements entered into shall be in effect for no more than
the five full years next following the date of completion of the project.
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, may 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
improvement 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 as it was prior to that improvement
or construction for the purpose of determining the assessed valuation
of the property from which any additional abatement is to be subtracted.
Every application for exemption or abatement and every exemption
and abatement 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.
All tax abatement and exemption agreements shall provide that
the applicant is subject to all federal, state and local laws and
regulations.
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 apportionment and school aid during the term
of the tax abatement agreement covering the property.
If during any tax year prior to the termination of the tax abatement
or 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. However, with respect
to sale or other disposal of the property which 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 abatement or exemption
agreement, the exemption or abatement shall continue.
In the event of default by the applicant, including, but not
limited to, the failure to make timely tax or in lieu of tax payments
to the municipality, the municipality shall notify the applicant,
in writing, of said default. The applicant shall have 30 days to cure
any default. Following the thirty-day cure period, the municipality
shall have the right to proceed against the property pursuant to the
In Rem Tax Foreclosure Act, N.J.S.A. 54:4-1 et seq., and/or may cancel the financial
agreement upon 30 days' notice to the applicant.
At the termination of a tax abatement or 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 or abatement shall be accepted
by the municipality unless accompanied by full payment of the required
application fee as set forth herein. Such fees shall be based on total
project cost as set forth in a schedule on file with the office of
the Municipal Clerk. These fees shall be received as compensation
for the Borough's administrative costs, legal review by the Borough
Attorney and related work.
The Municipal Clerk is hereby authorized and directed to forward
a certified copy of this article to the State of New Jersey Department
of Community Affairs.
No exemption or abatements shall be granted in the following
circumstances:
A. No exemptions or abatement shall be granted for any property for
which property taxes or any other municipal charges are delinquent
or remain unpaid or for which penalties for nonpayment are due for
a period of at least one year, or for any property not being used
in conformance with local, state or federal ordinance, regulation
or statute. In addition, one- and two-family structures which contain
home based businesses are ineligible for the tax exemption or abatement
programs described herein.
B. No exemption or abatement shall be granted for any property being
converted from single-family use to a multiple-family use.
C. No exemption or abatement shall be granted for any property the improvements
to which will increase the density, as that term is defined in N.J.S.A.
40:55D-4, beyond that permitted by the applicable zone regulations
notwithstanding that a variance may have been granted for such increase.
D. No exemption or abatement shall be granted for any property that
presently constitutes a valid nonconforming use or structure, as those
terms are defined in N.J.S.A. 40:55D-5, unless the improvement eliminates
the nonconformity.
The grant or denial of application for a tax exemption or abatement
pursuant to this article shall be made in the sole discretion of the
Tax Assessor and Borough Council. With respect to those approvals
requiring tax agreements, in making its determination Council shall
consider the cost and benefits of the improvements to the Borough
as a whole including its location, financial impacts, effect on the
zone plan and Master Plan, consistency with the development goals
of the Borough, fiscal determinations with respect to the Borough
budget and other factors deemed relevant by Council. Appeal of any
determination made by the Tax Assessor or Borough Council under the
terms of this article shall be made to the Camden County Board of
Taxation.
Where consistent with the context in which used in this article,
words importing the singular shall include the plural; words importing
the plural shall include the singular; and, words importing one gender
shall include all other genders.
Should any provision of this article be inconsistent with the
provisions of any prior ordinances, the inconsistent provisions of
such prior ordinances are hereby repealed, but only to the extent
of the inconsistencies.
In the event that any provision of this article or the application
thereof to any person or circumstance is declared invalid by a court
of competent jurisdiction, such declaration of invalidity shall not
affect any other provision or application of this article which may
be given effect, and, to realize this intent, the provisions and applications
of this article are declared to be severable.
The following fees are to be paid at the time that an application
is submitted for tax exemption and/or exemption and abatement. The
fees established herein may be adjusted from time to time by action
of the Borough Council. In the event that the exemption or abatement
is not granted, 50% of the application fee shall be refunded to the
applicant.
Fees are established based on the estimated cost of the improvement:
A. $0 to $50,000 = 1% of the estimated construction cost.
B. $50,001 to $150,000 = 1.1% of the estimated construction cost.
C. $150,001 to $300,000 = 1.2% of the estimated construction cost.
D. $300,001 to $500,000 = 1.3% of the estimated construction cost.
E. $500,001 and above = 1.5% of the estimated construction cost.
No applications for exemptions or abatements shall be filed
for exemptions or abatements to take initial effect in the 11th tax
year following adoption of this article or in any year thereafter
unless this article has been readopted pursuant to the provisions
of N.J.S.A. 40A:21-4.
A. Ord. No.
1535 authorized the renewal of the PILOT agreement with Haddon Heights
Senior Citizen Housing Corp. for Block 25, Lot 11.
[Added 10-3-2023 by Ord. No. 1535]