City of Bridgeton, NJ
Cumberland County
By using eCode360 you agree to be legally bound by the Terms of Use. If you do not agree to the Terms of Use, please do not use eCode360.
Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Bridgeton as indicated in article histories. Amendments noted where applicable.]
Article I Five-Year Real Estate Tax Exemption
Article II Urban Enterprise Zone Residential Tax Abatement
[Adopted 5-3-1994 by Ord. No. 93-22]
The definition of the terms used in this article shall be the same as they appear in N.J.S.A. 40A:21-3 and therefore are:
ABATEMENT
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.
AREA IN NEED OF REHABILITATION
A portion or all of a municipality 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. 194 (N.J.S.A. 40A:12A-1 et seq.).
[Amended 10-6-2003 by Ord. No. 03-5]
ASSESSOR
The officer of a taxing district charged with the duty of assessing real property for the purpose of general taxation.
COMMERCIAL OR INDUSTRIAL STRUCTURE
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.
COMPLETION
Substantially ready for the intended use for which a building or structure is constructed, improved or converted.
CONDOMINIUM
A property created or recorded as a condominium pursuant to the Condominium Act, P.L. 1969, c 257 (N.J.S.A. 46:8B-1 et seq.).
CONSTRUCTION
The provision of a new dwelling, multiple dwelling, or commercial or industrial structure, or the enlargement of the volume of an existing multiple dwelling or commercial or industrial structure by more than 30%, but shall not mean the conversion of an existing building or structure to another use.
CONVERSION or CONVERSION ALTERATION
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.
COOPERATIVE
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.
COST
When used with respect to abatements for dwelling or multiple dwellings, only the cost or fair market value of direct labor and materials used in improving a multiple dwelling, or of converting another building or structure to a multiple dwelling, or of constructing a dwelling, or of converting another building or structure to a dwelling, including any architectural, engineering, and contractor's fees associated therewith, as the owner of the property shall cause to be certified to the governing body by an independent and qualified architect, following the completion of the project.
DWELLING
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, P.L. 1967, c. 76 (N.J.S.A. 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 (N.J.S.A. 46:8A-1 et seq.), of the Condominium Act, P.L. 1969, c. 257 (N.J.S.A. 46:8B-1 et seq.), or of a cooperative, if the residential units are owned separately.
EXEMPTION
That portion of the Assessor's full and true value of any improvements, conversion alteration, or construction not regarded as increasing the taxable value of a property pursuant to this article.
HORIZONTAL PROPERTY REGIME
A property submitted to a horizontal property regime pursuant to the Horizontal Property Act, P.L. 1963, c. 168 (N.J.S.A. 46:8A-1 et seq.).
IMPROVEMENT
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 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 or commercial or industrial structure, 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 article.
MULTIPLE DWELLING
A building or structure meeting the definition of "multiple dwelling" set forth in the Hotel and Multiple Dwelling Law, P.L. 1967, c. 76 (N.J.S.A. 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 property regime.
[Amended 11-6-2006 by Ord. No. 06-11]
A. 
Exemption from taxation of improvements to dwellings. Exemptions from taxation of improvements to dwellings shall be allowed so that in determining the value of the real property the municipality shall regard the true value of improvements made to each such dwelling unit primarily and directly affected by the improvement as not increasing the value of such property for a period of five years except pursuant to a written agreement between the owner of such property and the City of Bridgeton in accordance with the provisions of § 317-6, and provided further that the payment of taxes with respect to the election of a five-year period of exemption shall be phased in accordance with § 317-6C. After the full fifth tax year, the value of such improvements shall be assessed and taxed at 100% of the taxes otherwise due for the sixth full tax year and each year thereafter. During the exemption period, the assessment of the property shall not be less than the assessment thereon existing immediately prior to the improvements, unless there is damage to the dwelling through the action of the elements sufficient to warrant a reduction.
B. 
New residential dwellings. Exemptions from taxation of a newly constructed residential dwelling shall be allowed so that in determining the value of real property, the municipality shall allow exemptions from taxation in accordance with a written agreement pursuant to § 317-6 of this article. In the event that a phased-in taxation of the assessed value of new residential construction is agreed to in accordance with § 317-6C, then, in such event, taxes shall be due as stated therein. The sixth full tax year following the granting of a tax exemption the property shall be taxed at 100% of the taxes otherwise due. During the exemption period, the assessment on the property shall not be less than the assessment thereon existing immediately prior to the completion of the construction of the new dwelling unless there has been damage to the dwelling due to action of the elements sufficient to warrant a reduction.
An exemption from taxation of improvements to commercial or industrial structures shall be allowed so that in determining the value of real property, the municipality shall regard up to the Assessor's full and true value of 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 structure through action of the elements sufficient to warrant a reduction.
Exemptions and/or abatements from taxation for construction of commercial or industrial structures shall be allowed as set out in N.J.S.A. 40A:21-8 and in accordance with provisions of N.J.S.A. 40A:21-9 through 40A:21-12.
Applicants for tax exemption and abatement for construction of commercial or industrial structures shall provide City Council with an application setting forth:
A. 
A general description of a project for which exemption and abatement is sought;
B. 
A legal description of all real estate necessary for the project;
C. 
Plans, drawings and other documents as may be required by the governing body to demonstrate the structure and design of the project;
D. 
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;
E. 
A statement of the reasons for seeking tax exemption and abatement on the project, and a description of the benefits to be realized by the applicant if a tax agreement 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 the agreement; and
(3) 
Estimated tax payments that would be made by the applicant on the project during the first full year following the termination of the tax agreement;
H. 
If the project is a commercial or industrial structure, a description of any lease agreements between the applicant and proposed users of the project, and a history and description of the users' businesses;
I. 
If the project is a multiple dwelling, a description of the number and types 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 dwellings' units respecting low- or moderate-income housing; and
J. 
Such other pertinent information as the governing body may require.
Upon adoption of an ordinance authorizing a tax agreement for a particular project, the City may enter into a written agreement with the applicant for the exemption and abatement of local real property taxes. The agreement shall provide for the applicant to pay to the municipality in lieu of full property tax payments an amount annually to be computed by one, but in no case a combination, of the following formulas:
A. 
Cost basis. The agreement may provide for the applicant to pay to the municipality in lieu of full property tax payments an amount equal to 20% of the cost of the project. For the purposes of the agreement, "the cost of the project" means only the cost or fair market value of direct labor and all materials used in the construction, expansion, or rehabilitation of all buildings, structures, and facilities at the project site, including the costs, if any, of land acquisition and land preparation, provision of access roads, utilities, drainage facilities, and parking facilities, together with architectural, engineering, legal surveying, testing and contractor's fees associated with the project; which the applicant shall cause to be certified and verified to the governing body by an independent and qualified architect, following the completion of the project.
B. 
Gross revenue basis. The agreement may provide for the applicant to pay to the municipality in lieu of full property tax payments an amount annually equal to 15% of the annual gross revenues from the project. For the purposes of the agreement, "annual gross revenues" means the total annual gross rental and other income payable to the owner of the project from the project. If in any leasing, any real estate taxes or assessments on property included in the project, any premiums for fire or other insurance on or concerning property included in the project, or any operating or maintenance expenses ordinarily paid by the landlord, are to be paid by the tenant, then those payments shall be computed and deemed to be part of the rent and shall be included in the annual gross revenue. The tax agreement shall establish the method of computing the revenues and may establish a method of arbitration by which either the landlord or tenant may dispute the amount of payments so included in the annual gross revenue.
C. 
Tax phase-in basis. The agreement may provide for the applicant to pay to the municipality in lieu of full property tax payments an amount equal to a percentage of taxes otherwise due, according to the following schedule:
(1) 
In the first full tax year after completion, no payment in lieu of taxes otherwise due.
(2) 
In the second tax year, an amount not less than 20% of taxes otherwise due.
(3) 
In the third tax year, an amount not less than 40% of taxes otherwise due.
(4) 
In the fourth tax year, an amount not less than 60% of taxes otherwise due.
(5) 
In the fifth tax year, an amount not less than 80% of taxes otherwise due.
A. 
All tax agreements entered into by the City pursuant to N.J.S.A. 40A:21-9 through 40A:21-12 shall be in effect for no more than five full tax years next following the date of completion of the project.
B. 
That percentage which the payment in lieu of taxes for a property bears to the property tax which would have been paid had an exemption and 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 tax apportionment and school aid during the term of the tax agreements covering the properties, and at the termination of an agreement for a property the reduced valuation procedure required under this section shall no longer apply.
C. 
Within 30 days after the execution of a tax agreement, a municipality shall forward a copy of the agreement to the Director of the Division of Local Government Services in the Department of Community Affairs.
A. 
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 exemption and abatement had been granted. The City shall notify the property owner and 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 the disposal of the 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, no tax shall be due, the exemption and the abatement shall continue, and the agreement shall remain in effect.
B. 
At the termination of a tax agreement, a project shall be subject to all applicable real property taxes as provided by state law and regulation and local ordinance, but nothing herein shall prohibit a project, at the termination of an agreement, from qualifying for and receiving the full benefits or any other tax preferences provided by law.
The Assessor shall determine, on October 1 of the year following the date of the completion of an improvement, conversion or construction, the true taxable value thereof. Except for projects subject to tax agreement, pursuant to N.J.S.A. 40A:2l-9 through 40A:21-12, 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 for the previous year, plus any portion of the assessed valuation of the improvement, conversion or construction not allowed an exemption pursuant to this article. Subject to the provisions of this article, the property shall continue to be treated in the appropriate manner for each of the five full tax years subsequent to the original determination by the Assessor.
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 article, 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.
No exemption or abatement shall be granted, or tax agreement entered into, pursuant to this article with respect to any property for which property taxes are delinquent or remain unpaid, or for which penalties for nonpayment of taxes are due.
A. 
No exemption or abatement shall be granted pursuant to this article except upon written application therefor filed with and approved by the Assessor of the taxing district wherein the improvement, conversion, alteration or construction is made. Every application shall be on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury, and provided for the use of claimants by the City of Bridgeton, and shall be filed with the Assessor within 30 days, including Saturdays and Sundays, following the completion of the improvement, conversion, alteration or construction.
B. 
Every application for exemption, or exemption and abatement, within the City of Bridgeton 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 or tax agreement, provided that the improvement, conversion, alteration or construction for which the application is made qualifies as an improvement, a conversion, alteration or construction pursuant to the provisions of this article and the tax agreement, if any.
C. 
The granting of an exemption, or exemption and abatement, or 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.
The exemption and abatement of real property taxes provided pursuant to this article shall apply to property taxes levied for municipal purposes, school purposes, county government purposes and for the purposes of funding any other property tax exemptions or abatements.
The City of Bridgeton, pursuant to N.J.S.A. 40A:21-20, shall include the notice 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. 
The City of Bridgeton shall report, on or before October 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 City in the current tax year for each of the following:
(1) 
Improvements of dwellings;
(2) 
Construction of dwellings;
(3) 
Improvements and conversions of multiple dwellings;
(4) 
Improvements of commercial or industrial structures;
(5) 
Construction of multiple dwellings under tax agreements; and
(6) 
Construction of commercial or industrial structures under tax agreements.
B. 
In the case of Subsection A(5) and (6) above, the report shall state instead the total amount of payments made in lieu of taxes according to each formula utilized by the City, 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.
Ordinance Nos. 83-78, 78-35, 78-13 and 81-12, and all amendments thereto, be and the same are hereby repealed. However, no exemption or abatement granted pursuant to the foregoing ordinances shall be affected or terminated by virtue of this repeal, but shall remain in effect for the time and under the terms granted as if the ordinance authorizing the exemption or abatement had not been so repealed.[1]
[1]
Editor's Note: Original Section 17, Effective Date and Filing of Applications, which immediately followed this section, was deleted 10-6-203 by Ord. No. 03-5.
[Adopted 3-20-2007 by Ord. No. 06-25]
The following definitions shall be applicable in accordance with the provisions of N.J.S.A. 54:4-3.140:
ABATEMENT
An exemption from real property taxes provided for the purposes of encouraging residential construction conversion, improvement and redevelopment pursuant to this article.
ASSESSOR
The Municipal Tax Assessor appointed pursuant to the provisions of Chapter 9 of Title 40A of the New Jersey statutes.
AVERAGE RATIO
The certified average ratio used for determining the common level range for each taxing district pursuant to P.L. 1973, c. 123 (N.J.S.A. 54:1-35a et seq.) as prepared by the Director of the Division of Taxation for the preceding tax year.
COMPLETED
With respect to a parcel of qualified property or the completion of that property, substantially ready for the use for which it is intended and its occupancy as a principal residence.
CONDOMINIUM
The form of real property ownership provided for under the Condominium Act, P.L. 1969, c. 257 (N.J.S.A. 46:8B-1 et seq.).
COOPERATIVE
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 constructed or erected by the corporation or association.
COST
When used with respect to construction, or to an improvement or conversion alteration, only the cost or fair market value of labor and materials used in constructing or improving qualified residential property, or in converting another building or structure to qualified residential property, including any architectural, engineering, and contractors' fees associated with the construction, improvement or conversion, as the owner of the property shall cause to be certified to the governing body by an independent and qualified architect, following the completion of the project.
EQUALIZED TAXES OTHERWISE DUE
The tax amount derived by levying on a structure for which a five-year tax abatement has been granted, a property tax imposed in the same manner as other property taxes are levied pursuant to Chapter 4 of Title 54 of the Revised Statutes, except that, for all tax years subsequent to the last tax abatement year including and ending in the tax year prior to a municipal-wide revaluation, the total property tax prior to any tax deduction shall be equalized by the Tax Collector by multiplying that amount times the average ratio of the taxing district, but in no event shall the payment for equalized taxes otherwise due be less than the total property tax payment on the structure prior to any tax deduction due and payable during the third tax year following completion of construction, improvements or conversion alterations pursuant to Section 7 of P.L. 1989, c. 207 (N.J.S.A. 54:4-3.145). No appeal shall be taken by the property owner from the determination by the Tax Collector of equalized taxes otherwise due, except for mathematical or typographical errors.
HORIZONTAL PROPERTY REGIME
The form of real property ownership provided for under the Horizontal Property Act, P.L. 1963, c. 168 (N.J.S.A 46:8A-1 et seq.).
QUALIFIED MUNICIPALITY
A municipality in which an urban enterprise zone or part of an urban enterprise zone has been designated pursuant to the New Jersey Urban Enterprise Zones Act, P.L. 1983, c. 303 (N.J.S.A. 52:27H-60 et seq.), and shall include the entire area within the corporate boundaries of that municipality, whether or not that area is included within an urban enterprise zone.
QUALIFIED RESIDENTIAL PROPERTY
Any newly constructed building used or to be used or held for use as a home or residence, including accessory buildings located on the same premises and including condominiums, cooperatives and horizontal property regimes. No building shall be considered a qualified residential property if the certificate of occupancy for the construction, conversion, rehabilitation or renovation was issued on or before the date falling 30 months prior to the effective date of this article.
The governing body of the City of Bridgeton declares that within the City of Bridgeton there is a need for increased new housing and that the facilitation of construction of new residential properties within the City of Bridgeton will be enhanced by the enactment of a tax exemption plan for residential dwelling units. Further, the City Council of the City of Bridgeton finds and determines that a significant percentage of the housing stock in the City of Bridgeton is deteriorated and that the supply of and demand for housing within the City of Bridgeton is disparate and that the entirety of the City of Bridgeton is in need of rehabilitation and improvements with respect to the housing stock for the benefit of the residents of the City of Bridgeton.
Pursuant to the authority of N.J.S.A. 54:4-3.142, abatement of real property taxes shall be allowed as follows:
A. 
Property tax abatement shall be allowed for a term of five years.
B. 
The application for an abatement under this article shall require that an application be made on a form prescribed by the Director of the Division of Taxation to be submitted to the Tax Assessor's office of the City of Bridgeton.
C. 
The application for a tax abatement under this article shall be made not later than 30 days following the completion of the structure, improvement, conversion or alteration, including saturdays and sundays. The application shall set forth the identification of the property by lot and block, address, the cost of improvements, construction, conversion, or alteration, description of the same and a certification of whether or not the property for which the abatement is sought shall be occupied by the owner thereof. Further, an applicant shall certify as to property taxes being paid or delinquent with respect to the property.
D. 
The method of computing payments in lieu of real property taxes pursuant to this article shall be as set forth in §§ 317-21 and 317-22.
Upon submission of the application designated in the preceding section, the Tax Assessor of the City of Bridgeton may approve it to the degree that the application is consistent with the provisions of this article, provided that the property for which the application is being made constitutes a qualified residential property pursuant to the provisions of this article. An abatement granted under this article shall take effect upon the issuance of a certificate of occupancy to the owner, and it shall be recorded and made a permanent part of the official tax records of the City of Bridgeton and shall contain a notice of the termination date of the abatement.
Each approved abatement shall be evidenced by an agreement between the City of Bridgeton and the applicant. The agreement shall be prepared by the City on a form prescribed by the City of Bridgeton and shall contain the representations that are required by this article. The agreement shall provide for the applicant to annually pay to the City an amount in lieu of real property taxes, to be computed as hereinafter provided:
A. 
Payments in lieu of taxes may be computed as a portion of the real property taxes otherwise due according to the following schedule:
(1) 
In the first tax year following completion: no payment in lieu of taxes otherwise due;
(2) 
In the second tax year following completion: an amount not less than 20% of taxes otherwise due;
(3) 
In the third tax year following completion: an amount not less than 40% of taxes otherwise due;
(4) 
In the fourth tax year following completion: an amount not less than 60% of taxes otherwise due;
(5) 
In the fifth tax year following completion: an amount not less than 80% of taxes otherwise due;
(6) 
In the sixth and all subsequent tax years following completion: 100% of the equalized taxes otherwise due.
B. 
For the purposes of this section, the amount of "taxes otherwise due" (not to be confused with "equalized taxes otherwise due") shall be determined by including the appropriate percentage of the assessed valuation of the abated structure, improvement or conversion alteration, as the case may be, on the assessment list of the city as taxable property, and levying taxes thereon in the same manner as other taxes are levied pursuant to Chapter 4 of Title 54 of the Revised Statutes; provided, however, that no value for a property subject to the provisions of this article shall be included in the calculation of the "net valuation on which county taxes are apportioned" until the first year for which a city-wide reevaluation is implemented.
In addition to the annual payment required pursuant to the preceding section of this article, the owner of a structure to which an abatement is applicable shall pay to the City of Bridgeton an annual administration fee in the amount of 1% of the payment provided for in the preceding section with respect to dwellings which are not owner occupied.
Payments required pursuant to this article shall be made in quarterly installments according to the same schedule as real property taxes are due and payable. Failure to make these payments shall result in termination of the abatement. In addition, the payments required pursuant to the preceding section of this article shall be enforced in the same manner as is provided for real property taxes pursuant to Title 54 of the Revised Statutes.
In addition to the payments required in lieu of taxes pursuant to § 317-21A of this article, the owner of a parcel of qualified property granted an abatement pursuant to this article shall be liable for all real property taxes assessed and levied against the land on which the qualified residential property is situated.
No abatement shall be granted pursuant to this article with respect to any property for which property taxes are delinquent or remain unpaid or for which penalties for nonpayment of taxes, other liens or assessments are due.
Only one abatement is to be used. An owner of property seeking an abatement under Article II hereof shall be entitled to apply for an abatement only under Article II of this chapter or Article I of this chapter and shall not be entitled to apply for nor receive an abatement under both articles during the allowed five-year abatement or exemption.