[HISTORY: Adopted by the Mayor and Council of the Borough of Bradley Beach as indicated in article histories. Amendments noted where applicable.]
Article I Tax Exemption for Improvements to Structures
[Adopted by Ord. No. 1996-06 (Secs. 2-61 and 2-62 of the 1974 Code)]
Note: This article shall not apply to newly constructed dwellings.
The Legislature has determined that various statutes authorized by the New Jersey Constitution, Art. 8, Sec. 1, par. 6, permitting municipalities to grant, for periods of up to five years, exemptions from taxation in areas in need of rehabilitation, have proven to be effective in prompting construction and rehabilitation of residential and commercial structures. The Legislature adopted Chapter 441 of the Laws of 1991 (N.J.S.A. 40A:21-1 et seq.) so as to consolidate and make more coherent the most useful features of such statutes. Chapter 441 provides that the governing body may utilize these laws in order to reverse and to prevent trends towards deterioration. It is the opinion of the governing body that the entire Borough is an area in need of rehabilitation as set forth in the statute and that the governing body believes that by exempting for a limited period improvements from taxation, owners and investors would be encouraged to rehabilitate properties in the Borough. The governing body does hereby grant tax exemptions set forth herein.
As used in this article, terms shall be defined as in N.J.S.A. 40A:21-3.
Dwellings, multiple dwellings, commercial, or industrial structures. In determining the value of real property, the Borough shall regard the maximum dollar amount allowable under N.J.S.A. 40A:21-5 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, 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 sufficient to warrant a reduction.
The Assessor shall determine, on October 1 of the year following the date of 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, plus any portion of the assessed valuation of the improvement, conversion, or construction not allowed an exemption pursuant to this act. The property shall be treated in the appropriate manner for five tax years.
An additional improvement completed on a property granted a previous exemption during the period in which the previous exemption is in effect shall be qualified for an exemption as if such property had not received a previous exemption. The additional improvement shall be considered as separate for the purposes of calculating the exemption, except that the assessed value of any previous improvement shall be added to the assessed valuation as it was prior to that improvement for the purpose of determining the assessed valuation of the property from which any additional abatement is to be subtracted.
[Amended 5-13-2014 by Ord. No. 2014-12]
No exemption or abatement shall be granted with respect to any property for which property taxes or sewer bills are delinquent or remain unpaid or for which penalties for nonpayment of taxes are due.
In accordance with N.J.S.A. 54:5-54, the Tax Collector shall provide to any party entitled to redeem a certificate pursuant to the section (N.J.S.A. 54:5-54) two calculations of the amount required for redemption within a calendar year at no cost. For each subsequent calculation requested from the Tax Collector, there shall be a fee of $50. A request for a redemption calculation shall be made, in writing, to the Tax Collector.
In accordance with N.J.S.A. 54:5-97.1, the Tax Collector may charge the lienholder of the tax lien a fee of $50 for the calculation of the amount due to redeem the tax lien as required pursuant to N.J.S.A. 54:5-97.1. Any request for a redemption calculation shall specify the date to be used for the calculation, which shall be date of the notice. Neither the Tax Collector nor the municipality shall be liable for an incorrect calculation. The fee paid to the municipality shall not become part of the lien and shall not be passed on to any party entitled to redeem pursuant to N.J.S.A. 54:5-54.
No exemption shall be granted except upon written application on a form prescribed by the Division of Taxation in the Department of Treasury and shall be filed with the Assessor within 30 calendar days following the completion of the improvement. The granting of an exemption must be approved by the Assessor and shall be made a permanent part of the official tax records and shall contain a notice of termination date thereof.
The exemption of real property taxes shall apply to property taxes levied for municipal, school, and county government purposes and for the purposes of funding any other property tax exemptions.
The Tax Assessor shall report, on or before September 1 of each year, to the Mayor and Council as to the total amount of real property taxes exempted and the total amount abated within the Borough in the current tax year under this article.
No exemption or abatement granted by the prior ordinance or law shall be affected or terminated by this article, but shall remain in effect for the time and under the terms granted as if the article had not been superseded or repealed. This article shall take effect immediately upon final adoption and publication according to law. The exemptions of abatement under this article shall not be effective or granted for projects or improvements upon which a building permit has been issued or construction commenced prior to the effective date of this article.