[Adopted 8-8-2001 by Ord.
No. 13-2001]
This article shall be known as the "Five-Year Exemption Law For Residential
Structures."
The purpose of this article is to establish procedures whereby qualified
individuals may avail themselves of the property tax exemptions which the
Borough of Eatontown is permitted by law to grant pursuant to N.J.S.A. 40A:21-1
et seq.
The entire Municipality of the Borough of Eatontown is hereby designated
as an area which residential buildings may avail themselves of this article.
As used in this article, the following terms shall have the meanings
indicated:
All of the municipality for purposes of residential buildings as set forth more fully in § 293-13 which has been determined to be an area in need of rehabilitation or development pursuant to law where a program of rehabilitation, improvement and new construction will prevent further deterioration and promote the overall development of the municipality.
The officer of the Borough of Eatontown charged with the duty of
assessing real property for the purposes of general taxation.
Substantially ready for the intended use for which the building or
structure is constructed, improved or converted.
The alteration or renovation of a nonresidential building or structure
or hotel, motel, motor hotel or guest house, in such manner as to convert
the building or structure from its previous use to use as a residential dwelling.
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 property submitted to a horizontal property pursuant to the Horizontal
Property Act, P.L. 1963, c. 168 (N.J.S.A. 46:8A-1 et seq.)
A modernization or 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 no case shall it include the repair of fire or other
damage to the 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 the application pursuant to this article.
A building or part of a building used, to be used or held for use
as a home or residence (owner occupied), 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 of a cooperative, or the residential units that are owned separately.
A.
This article authorizes an exemption from taxation of
improvements to residential dwellings at least 20 years old for the first
$25,000 of otherwise taxable improvements for a period of five years following
completion of such improvements pursuant to N.J.S.A. 40A:21-5 and the regulations
duly promulgated pursuant thereto.
B.
In regard to residential dwellings, and the exemption
provided pursuant to this section, 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 through
action of the elements sufficient to warrant a reduction.
The Borough 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. 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, minus the amount of reduction caused by damage, if any, pursuant to § 293-15B of this article, plus any portion of the assessed valuation of the improvement, conversion or construction not allowed an exemption pursuant to this article. The property owner shall continue to be treated in the appropriate manner under the terms of this article and the tax agreement, if any, for each of the five full tax years subsequent to the original determination by the Tax Assessor.
Any additional improvements, conversions or construction, completed
on a property granted a previous exemption pursuant to this article during
the period in which such previous exemption is in effect, shall be qualified
for an exemption, just as if such property had not received a previous exemption.
In such case, the additional improvement, conversion or construction shall
be considered as separate for the purpose of calculating exemptions 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.
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.
No exemption shall be granted pursuant to this article except upon written
application filed with and approved by the Borough Tax Assessor. 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 Borough of Eatontown and shall be filed with the Borough Assessor within
30 days, including Saturdays and Sundays, following the completion of the
improvement, conversion or alteration of construction and/or issuance of a
certificate of occupancy, whichever occurs first. Every application for exemption
which is filed within the time specified shall be approved and allowed by
the Assessor and the governing body to the degree that the application is
consistent with the provisions of the adopting ordinance, provided that the
improvement, conversion, alteration or construction for which the application
is made qualified as an improvement, a conversion, alteration or construction
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 records shall contain a notice of termination date thereof.
The exemption of real property taxes 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.
The Borough Tax Collector shall include a notice describing the exemption
program provided for by this article and the application procedure therefore
in the mailing of annual property bills to each owner of residential property
located in the Borough of Eatontown and which may be allowed pursuant to this
article during the first year following adoption of this article.
The Borough Council shall report, on or before October 1 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 Treasury the total amount of real property taxes exempt within
the Borough for current tax year under this article.
No exemption granted by any 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 ordinance had not been superseded or repealed.
This article shall take effect immediately, and exemptions may be granted
for the first full tax year commencing after enactment and for tax years thereafter.
A.
The Borough Tax Collector shall mail out a notice within 60 days of enactment of this section, notifying all property owners that qualify normally under this chapter for an exemption that, if they made an improvement that would normally qualify under the chapter between August 2001 and January 2005, they have a right to make an application for exemption, pursuant to and in accordance with the chapter as amended, by filing an application with the Borough Assessor within 30 days of notice being mailed from the Assessor's office seeking such an exemption. All improvements after January 2005 will be in accordance with the thirty-day requirement set forth in § 293-19, as amended. The Assessor's determination regarding these applications and all future applications must be approved or disapproved by the Borough Council by resolution.
B.
All applications for exemptions filed with the Borough Tax Assessor
must be approved by the Tax Assessor and the Borough Council, by resolution.
