[HISTORY: Adopted by the Township Committee of the Township of Egg Harbor 9-8-1999 by Ord. No. 37-1999. Amendments noted where applicable.]
[Amended 5-10-2000 by Ord. No. 15-2000]
The Township may enter into agreements with applicants for tax abatement on commercial and industrial construction projects located in the commercial, business and industrial zones designated as NB, CB, HB, RCD, RB, MC, PO-1, PO-2, M-1 and R-I, collectively, or any other zoning district in which the commercial and industrial construction project is deemed to be a permitted use by either the Egg Harbor Township Planning Board or Zoning Board of Adjustment, as appropriate, the "qualified zones," which provide for an abatement from real property taxation on projects for a period of up to five years. During such five-year period, the tax agreements shall provide for payments to the Township of Egg Harbor in lieu of full property taxes, which payments shall be calculated as set forth in § 201-4 of this chapter. Applications for abatement from taxation may be filed to take initial effect for the first full tax year commencing after the tax year in which the ordinance is adopted and for tax years thereafter as set forth in P.L. 1991, c. 441 (N.J.S.A. 40A:21-1 et seq.), but no application for abatement shall be filed for abatements to take initial effect for the 11th full tax year or any tax year occurring thereafter unless an ordinance readopting the ordinance by the governing body of the Township of Egg Harbor is passed.
Editor's Note: This chapter, adopted 9-8-1999 by Ord. No. 37-1999, was readopted in its entirety for an additional 10 years 8-12-2009 by Ord. No. 30-2009.
[Amended 8-12-2009 by Ord. No. 30-2009]
To be considered for tax abatement for new construction or other construction as defined herein of commercial or industrial structures pursuant to N.J.S.A. 40A:21-9, a project must contain a minimum of 5,000 square feet of floor space per use. To be considered for tax abatement for new condominium construction as defined herein of commercial or industrial structures pursuant to N.J.S.A. 40A:21-9, a project must contain a minimum of 10,000 square feet of floor space with each individual unit containing a minimum of 2,500 square feet of floor space per use. To be considered for tax abatement for major rehabilitation as defined herein of existing commercial and industrial structures pursuant to N.J.S.A. 40A:21-9, a project must increase the assessed value of the structure by a minimum of 25% of the existing structure assessed value. All such applications regarding new construction and other construction must be filed with the Tax Assessor with a copy provided to the governing body. Every application must be filed with the Assessor within 30 days, including Saturdays and Sundays, following substantial completion of the improvement, alteration or new construction. The application must be a form prescribed by the Director of the Division of Taxation in the Department of Treasury, and must set forth:
A general description of this project for which abatement is sought.
A legal description of all real estate necessary for the project.
Plans and drawings, including a site layout on the total lot area, and other documents as may be required by the governing body to demonstrate the structure and design of the project.
A description of the number, classes, types of employees and average estimated wages and salaries by employee class, to be employed at the project site within two years of the completion of the project.
A statement of the reasons for seeking tax abatement on the project and a description of the benefits to be realized by the application if tax abatement is granted.
Estimates of the cost of completing such project.
A statement showing the real property taxes currently assessed at the project site; estimated tax payments that would be made annually by the applicant on the project during the period of tax abatement; and estimated tax payments that would be made by the applicant on the project during the first year following the termination of the tax abatement agreement.
A description of any lease agreements between the applicant and proposed users of the project, and a history and description of the user's business.
Proof of payment of taxes through the current quarter.
Other pertinent data regarding the relationship, agreements and status of other properties owned by the applicant within the Township of Egg Harbor.
Such other pertinent information as the governing body may require.
Applications for tax abatement will be considered for uses such as:
Light industrial, light manufacturing and indoor warehousing facilities which are nonpolluting and nonnoxious.
Scientific or industrial research engineering laboratory, testing or experimental laboratory or similar establishment for research or product development.
Experimental, research testing, dental or medical laboratories.
Carpet or rug cleaning, laundry and dry cleaning.
Job printing and newspaper or book publishing.
Baking and food and dairy processing.
Corporate and professional offices.
General service and repair shops, including carpenter, cabinet making, furniture repair, plumbing or similar shop.
Office of a builder, carpenter, caterer, cleaner, contractor, decorator, electrician, furrier, mason, painter, plumber, roofer, upholsterer and similar nonnuisance businesses, excluding open storage of materials and excluding open storage of motor vehicles.
Veterinary hospital, provided that all animals are kept in a permanent enclosed structure and are not within 150 feet of any existing residential use or zone.
Businesses and instructional school, including trade school.
Nursing homes, homes for the aged and assisted living facilities.
General commercial establishments permitted by zoning for the qualified zones.
Accessory uses on the same lot with and customarily incidental to any of the above permitted uses.
Recreational uses, including, without limitations, golf facilities, family-oriented recreational centers and uses reasonably related thereto.
[Added 5-10-2000 by Ord. No. 15-2000]
Substantial rehabilitation of an existing commercial or industrial structure which increases the structure assessed value by 25% or more of the existing structure assessed value.
[Added 8-12-2009 by Ord. No. 30-2009]
Applications for particular project or projects. Upon adoption of an ordinance authorizing an agreement or agreements for particular project or projects, the governing body may enter into written agreements with the applicants for the abatement of local real property taxes. Before the municipality enters into any such tax agreements, the municipality must adopt an ordinance authorizing the execution of each such agreement. Such tax agreements may only be authorized by ordinance and not by resolution.
Payment in lieu of taxation. An 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 the following formula:
Tax phase-in basis: The applicant must 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 formula:
In the first full tax year after completion, no payment in lieu of taxes otherwise due.
In the second tax year, an amount not less than 20% of taxes otherwise due.
In the third tax year, an amount not less than 40% of taxes otherwise due.
In the fourth tax year, an amount not less than 60% of taxes otherwise due.
In the fifth tax year, an amount not less than 80% of taxes otherwise due.
Duration. All tax agreements entered into by virtue of this chapter shall be in effect for no more than five full tax years next following the date of completion of the project. Within 30 days after the execution of a tax agreement, the Township shall forward a copy of the agreement to the Director of the Division of Local Government Services in the Department of Community Affairs.
Delinquencies. No exemption or abatement shall be granted or tax agreement entered into with respect to any property for which property taxes are delinquent or remain unpaid, or for which penalties for nonpayment of taxes are due.
Disqualification. 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 abatement had been granted. The governing body shall notify the property owner and Tax Collector and the Tax Collector shall within 15 days notify the owner of the property of the amount of taxes due. With respect to the disposal of 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 abatement shall continue and the agreement shall remain in effect. No later than 15 calendar days prior to transfer of ownership, the current owner of the property under abatement must notify the Township Tax Assessor of the transfer. Upon acquisition of the abated property, the new owner must make application to the Tax Assessor for a continuance of the tax abatement within 15 calendar days.
[Amended 8-12-2009 by Ord. No. 30-2009]
Termination. At the termination of the tax agreement, a project shall be subject to all applicable real property taxes.
The owner of a tax-abated property, upon receipt of the executed agreement, must file the agreement with the County Clerk of the County of Atlantic and provide proof of filing to the Township Tax Assessor. No abatement shall take effect until the proof of filing is received.
[Added 8-12-2009 by Ord. No. 30-2009]
As used in this chapter, the following terms shall have the meanings indicated:
- The Officer of the Township of Egg Harbor 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 projects, 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.
- Substantially ready for the intended use for which a building or structure is constructed.
- Under tax abatement, a new commercial or industrial building
of at least 10,000 square feet meeting requirements for tax abatement
which is divided into multiple units of at least 2,500 square feet.[Added 8-12-2009 by Ord. No. 30-2009]
- CONDOMINIUM OWNERSHIP
- The owner of a commercial or industrial building or segment
thereof meeting the definition of condominium.[Added 8-12-2009 by Ord. No. 30-2009]
- CONDOMINIUM UNIT
- Under tax abatement, a unit of at least 2,500 square feet
located in a new commercial or industrial building of a minimum size
of 10,000 square feet. Each unit must be separately deeded under a
condominium form of ownership.[Added 8-12-2009 by Ord. No. 30-2009]
- The development of a commercial or industrial structure or the enlargement of the volume of an existing commercial or industrial structure by more than 30% but shall not mean the conversion of an existing building or structure to another use.
- SUBSTANTIAL REHABILITATION
- The major rehabilitation of a commercial or industrial building
which results in a minimal increase of 25% of the structure assessed
value.[Added 8-12-2009 by Ord. No. 30-2009]
[Added 8-12-2009 by Ord. No. 30-2009]
An application filing fee of $150 shall be paid by the applicant at the time of filing the application. The application fee will provide for the administrative services to be undertaken by the Township Tax Assessor, and any other Township official, in order to render a determination on the applicant’s eligibility for tax abatement. The filing shall over the cost for the application review, determination and publication fees.