[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:
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 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]
The officer of a taxing district charged with the duty of
assessing real property for the purpose of general taxation.
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.
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 (N.J.S.A. 46:8B-1 et seq.).
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.
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.
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.
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.
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.
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.).
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.
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; 12-5-2023 by Ord. No. 23-44]
A.
Exemption and abatement from taxation of improvements
to dwellings. Exemptions from taxation of improvements to dwellings
more than 20 years old shall be allowed so that in determining the
value of the real property the municipality shall regard the first
$25,000 in the Assessor's 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. 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.
Abatements may be granted via application to and approval
by the Tax Assessor for improvements that do not warrant or cause
an increase in value and do not constitute maintenance items but do
modernize and extend the useful life of the property. The improvement
upon which the abatement is granted must be in accordance with N.J.S.A.
40A:21-1 et seq. Such abatement is applicable to residential owner-occupants
and is capped at $25,000 of assessed value for any and all such qualifying
improvements to the property. The term of such abatements is five
years.
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 2% 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.
[Amended 12-5-2023 by Ord. No. 23-44]
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.
