[Adopted 4-27-2021 by Ord. No. 3-2021]
A. 
The intention of this article is to effectuate and accomplish the purposes authorized by N.J.S.A. 40A:21-1 et seq., which permits municipalities to adopt an ordinance setting forth the eligibility or noneligibility to grant for periods of five years exemptions from taxation within the Township-wide area in need of rehabilitation.
B. 
The intended purpose of this article is to:
(1) 
Promote the improvement, and/or rehabilitation single-family residential dwellings within the Township of Mullica.
(2) 
Improve property values.
(3) 
Foster civic beauty.
(4) 
Protect and enhance the Township's attractions to residents, tourists, and visitors and to serve as a support and stimulus to business.
(5) 
Assist and encourage residential property owners and prospective purchasers in to achieve the goals established by the Township Committee and Township Planning Board through adoption of the Township's Master Plan.
A. 
The Township Committee of the Township of Mullica (the "Township Committee") hereby determines to utilize the authority granted under Article VIII, Section I, paragraph 6 of the New Jersey Constitution to establish the eligibility of residential dwellings for exemptions permitted by P.L. 1991, c. 441 (See N.J.S.A. 40A:21-1 et seq.), throughout areas designated, or to be designated, as in need of redevelopment.
B. 
The Township Committee hereby authorizes and establishes a policy whereby it shall accept, review, and consider an application, submitted in accordance herewith, for tax exemptions pursuant to applicable law for improvements within the area designated as an area in need of rehabilitation by the Township Committee.
This article authorizes the Township of Mullica to grant exemptions to commence and take effect in the 2021 tax year and thereafter.
A. 
The definitions contained in N.J.S.A. 40A:21-3 are incorporated herein by reference as if set forth at length. As used in this article, words shall have the meanings as so defined unless a different meaning is expressed.
B. 
Completion means substantially ready for the intended use for which a single-family building or structure is improved.
C. 
Improvement: Improvement means a modernization, rehabilitation, renovation, alteration, or repair of a single-family residential dwelling 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.
(1) 
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.
D. 
Project: Project means the improvement of a single-family residential structure in an area in need of rehabilitation that would qualify for an exemption, pursuant to P.L. 1991, c.441 (N.J.S.A. 40A:21-1 et seq.).
E. 
Annual period: Annual period means a duration of time comprising 365 days, or 366 days when the included month of February has 29 days, that commences on the date that an exemption for a project becomes effective pursuant to section 16 of P.L. 1991, c. 441 (N.J.S.A. 40A:21-16).
F. 
Abatement: Abatement means that portion of the assessed value of a single-family residential property as it existed prior to improvement which is exempted from taxation pursuant to this article.
A. 
Improvements to residential dwellings.
(1) 
There shall be an exemption from taxation of improvements to single-family residential dwellings, more than 20 years old. In determining the value of real property, 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 improvements 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.
(2) 
To be eligible to make application for the exemption under the Assessor's full and true value of improvements must be more than the $25,000 threshold for each dwelling unit.
(3) 
Excluded from the exemption is the repair of fire or other damage to 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. In the event, however, that the Assessor's full and true value of the improvement results in at least a $25,000 increase over the assessed value of the property prior to the fire or other damage to the property, an application may be submitted for an abatement of $25,000 of such added assessment.
B. 
Tax abatement. Subject to the approval of the Assessor, improvements made to dwellings shall be eligible for a tax abatement in accordance with the following:
(1) 
Only improvements made to dwellings more than 20 years old are eligible for tax exemption for a period of five years. For purposes of eligibility under this section a dwelling will be considered less than 20 years old if in the last 20 years the dwelling has been demolished in its entirety or where less than 60% of the original square footage of the dwelling remains.
(2) 
Upon approval, the Assessor, in determining value, shall regard the first $25,000 of the 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.
(3) 
The added assessment tax for the full value of the improvement shall be collected as an added assessment in the year of completion. The five-year exemption period shall not commence until the first full year following the tax year in which the improvement is completed.
(4) 
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.
Applicants for tax exemption pursuant to § 206-14A shall submit an application to the Tax Assessor on Form E/A - 1 within 30 days, including Saturdays and Sundays, following substantial completion of the improvement as defined in N.J.S.A. 40A:21-3.
A. 
No application for tax exemption shall be accepted by the municipality unless accompanied by full payment of the required application fee. The fees shall be received as compensation for the legal review and related work the municipality's departments and agencies.
B. 
The initial fee schedule is as follows and may be amended from time to time by a resolution adopted by Township Committee:
(1) 
For Improvements to single-family residential property: no fee.
The following procedure shall be applied to applications for exemption:
A. 
The Tax Assessor shall determine the date of substantial completion in accordance the Five-Year Tax Exemption and Abatement Law which decision shall be final, and not subject to appeal.
B. 
All tax exemptions granted pursuant to this chapter shall be in effect for no more than the five full tax years next following the date of completion of the project. This article shall not preclude the governing body from entering into a financial agreement for a tax exemption and/or abatement pursuant to the Long-Term Tax Exemption Law or any other statute authorizing a tax exemption and/or abatement for a period longer than five years.
C. 
As a condition to granting an exemption, a property owner shall be required to waive the filing of any tax appeal for the subject property for the life of the exemption term(s).
A. 
If during any tax year prior to the termination of the tax exemption term, the applicant ceases to use the property or disposes of the property or otherwise fails to meet the conditions of eligibility, the tax otherwise due if there had been exemption during any of the years during which the Agreement was in effect, and all such taxes 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.
B. 
With respect to sale or other disposal of the property, however, the exemption shall continue during the exemption period; but shall immediately be terminated if the new owner ceases to use the property for single family residential use.
The Township of Mullica hereby determines that an additional improvement completed on a single-family residential property already granted a previous exemption pursuant to this chapter during the period in which the previous exemption is in effect may qualify for an additional exemption. The additional improvement may be considered as separate for purposes of calculating the exemption if the same criteria set forth in § 206-14A is satisfied, except that the assessed value of any previous improvement may be added to the assessed valuation as it was prior to that improvement or construction for the purpose of determining the assessed value of the property for which any additional exemption is to be subtracted. Any additional exemption must be reviewed and approved by the Tax Assessor.
No exemption shall be granted pursuant to this chapter for any property for which property taxes and/or other municipal charges are delinquent or remain unpaid, or for which penalties for nonpayment of taxes are due. As a condition to granting an exemption, a property owner shall be required to waive the filing of any tax appeal for the subject property for the life of the exemption.
No exemption shall be granted pursuant to this chapter except upon written application therefor filed with the Tax Assessor in compliance with § 206-15. The granting of an exemption shall be recorded and made a permanent part of the official tax records of Mullica Township, which record shall contain a notice of the termination date thereof.
At the termination of the tax abatement term the project shall be subject to all applicable real property taxes, as provided by state laws and regulations and local ordinances, provided that nothing herein shall be deemed to prohibit the project or improvement at the termination of the agreement for tax exemption or abatement from qualifying for and receiving the full benefits of any other tax preference provided by law.
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.
All tax 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 bear to the property taxes which would have been paid had an exemption 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.
This article and the opportunity to apply for Tax exemption shall expire on December 31, 2025 after which no further applications shall be accepted unless this article shall have been re-adopted by Township Committee in accordance with the Exemption Law.
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. In compliance with N.J.S.A. 40A:21-21 on or before October 1 of each year, the Township shall submit 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 improvements of residential dwellings.
Captions contained in this article have been inserted only for the purpose of facilitating reference to the various sections and are not intended and shall not be utilized to construe the intent and meaning of the text of any section.
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.