[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:
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 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.).
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.
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.
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.
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.
