[Adopted 4-28-1997 by Ord. No. 97-8]
Improvements to dwellings and improvements to or new construction of commercial and industrial structures, as defined herein, shall be eligible for exemptions from taxation pursuant to the terms and conditions of Chapter 261 of the Code of the Borough of Clementon.
As used in this article, the following terms shall have the meanings indicated:
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 unless the total square footage of the floor area of the structure or part thereof used or to be used by the business at the new site, together with the total square footage of the land used or to be used by the business at the new site exceeds the total square footage of that utilized by the business at its current site of operations by at least 10%; and the property that the business is relocating to has been the subject of a remedial action plan costing in excess of $250,000 performed pursuant to an administrative consent order entered into pursuant to authority vested in the Commissioner of Environmental Protection under P.L. 1970, c. 33 (N.J.S.A. 13:1D-1 et seq.), the Water Pollution Control Act, P.L. 1977, c. 74 (N.J.S.A. 58:10A-1 et seq.), the Solid Waste Management Act, P.L. 1970, c. 39 (N.J.S.A. 13:1E-11 et seq.), and the Spill Compensation and Control Act, P.L. 1976, c. 141 (N.J.S.A. 58:10-23.11 et seq.).
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.
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.) or the Condominium Act, P.L. 1969, c. 257 (N.J.S.A. 46:8B-1 et seq.), or a cooperative, if the residential units are owned separately.
EXEMPTION
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.
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 commercial 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. 
In determining the value of real property for the purpose of taxation, the first $25,000 in the Assessor's full and true value of improvements for each dwelling unit primarily and directly affected by the improvement in any dwelling more than 20 years old shall not increase 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.
B. 
In determining the value of commercial or industrial structures for purposes of taxation, an amount equal to the Assessor's full and true value of construction or improvements shall not increase 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.
C. 
In determining the value of construction of new dwellings or of conversions of other buildings and structures, including unutilized public buildings, to dwelling use, or both, the Borough of Clementon shall regard a percentage, not to exceed 30%, of the Assessor’s full and true value of the dwelling constructed, or conversion alteration made, as not increasing the value of the property for a total up to five years, notwithstanding that the value of the property upon which the construction or conversion occurs is increased thereby.
[Added 9-25-2007 by Ord. No. 2007-09; amended 5-12-2009 by Ord. No. 2009-11
During the exemption period for either dwellings, commercial or industrial structures, 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.
The Assessor shall determine, on October 1 of the year following the date of the completion of an improvement, the true taxable value thereof. 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. 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.
Additional improvements completed on a property granted a previous exemption during the period in which such previous exemption is in effect shall be qualified for an exemption just as if said property had not received a previous exemption. In such case, the additional improvement shall be considered as separate for the purpose of calculating the exemption; provided, however, that in any tax year the total exemption for any dwelling or commercial structure shall not exceed the amount set forth in § 261-25.
No exemption 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 are due.
The exemption 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.
A. 
Applicants for tax exemption for new construction of commercial or industrial structures or improvements to commercial or industrial structures shall provide the governing body with an application setting forth:
(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 the governing body 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) 
Estimates of the cost of completing such project;
(7) 
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 agreement; and 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;
(8) 
A description of any lease agreements between the applicant and proposed users of the project and a history and description of the users' businesses; and
(9) 
Such other pertinent information as the governing body may require.
B. 
Applications for tax exemptions for dwellings shall be granted pursuant to this article upon written application therefor filed with and approved by the Assessor of the Borough of Clementon. 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 governing body and shall be filed with the Assessor within 30 days, including Saturdays and Sundays, following the completion of the improvement. Every application for exemption 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, provided that the improvement for which the application is made qualifies as an improvement pursuant to the provisions of this article. The granting of an exemption shall be recorded and made a permanent part of the official tax records of the Borough, which record shall contain a notice of the termination date thereof.
C. 
All applications for exemptions are subject to review, evaluation and final approval by the governing body of Clementon Borough.
The governing body of the Borough of Clementon may enter into a written tax agreement for the exemption of local real property taxes. The agreement shall provide for the applicant to pay 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 Borough of Clementon 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 contractors' 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 Borough of Clementon 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 payment 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 Borough of Clementon 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; and
(5) 
In the fifth tax year, an amount not less than 80% of taxes otherwise due.
A. 
All tax agreements entered into by the Borough of Clementon shall be in effect for no more than the five full tax years next following the date of completion of the project.
B. 
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.
C. 
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 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.
D. 
Within 30 days after the execution of a tax agreement, the Borough of Clementon 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 had been granted. The Borough of Clementon 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 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 of any other tax preferences provided by law.