[1]
Editor's Note: This ordinance also repealed
former Ch. 422, Art. I, Tax Exemptions for Real Property Improvements,
adopted 10-23-2001 by Ord. No. 01-45.
All previous ordinances adopted by the Borough
of Glassboro related to abatements and exemptions for properties located
in areas in need of rehabilitation are superseded by this article.
The Council hereby determines to utilize the
authority granted under Article VIII, Section 1, Paragraph 6, of the
New Jersey Constitution to establish the eligibility of residential
dwellings, multiple dwellings, condominiums and cooperatives and the
eligibility of commercial and industrial structures for exemptions
and abatements permitted by P.L. 1991, c. 441 (see N.J.S.A. 40A:21-1
et seq.), throughout areas designated, or to be designated, as in
need of rehabilitation.
This article authorizes the Borough of Glassboro to grant exemptions
and abatements to commence and take effect in the 2013 tax year and
thereafter.
A.
There shall be an exemption from taxation of improvements
to residential owner-occupied, single-family dwellings and the owner-occupied
residential portion of mixed-use dwellings more than 20 years old.
In determining the value of real property, the Borough shall regard
the first $25,000 in the Assessor’s full and true value of improvements
for each dwelling unit primarily and directly affected by the improvements
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 through action of the elements sufficient to warrant a reduction.
B.
There may be an exemption of a portion of the assessed valuation of construction of new dwellings and of conversions of other buildings and structures, including unutilized public buildings, to dwelling use. In determining the value of the real property, the Borough shall consider 30% of the Assessor’s full value of the dwelling constructed, or conversion alterations made, as not increasing the value of the property for a total of five years, notwithstanding that the value of the property upon which the construction or conversion occurs is increased thereby. An application for abatement pursuant to this section shall be made to the governing body in the form set forth in § 422-8 of this article.
A.
There shall be an exemption from taxation of improvements to multiple dwellings. In determining the value of the real property, the Borough shall regard first $25,000 in the Assessor’s full and true value of the improvements or conversion alterations as not increasing the value of the property for a total of five years, notwithstanding that the value of the property upon which the construction or conversion alteration occurs 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 an abatement is granted pursuant to Subsection B of this section, or there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction. An exemption pursuant to this section shall be approved by the Assessor upon the filing of an application as required by § 422-15 of this article.
B.
There may be an abatement of a portion of the assessed value of property receiving an exemption pursuant to § 422-5A of this article as it existed immediately prior to the improvement or conversion alteration. An abatement for a multiple dwelling may be granted by the Borough Council with respect to such property for five years. The annual amount of the abatement shall be equal to 20% of the total cost of the improvements or conversion alteration of the property, provided that the annual amount of the abatement shall not exceed 30% of the total cost of the improvements or the conversion alteration. An application for abatement pursuant to this section shall be made to the governing body in the form set forth in § 422-8 of this article.
A.
There shall be an exemption from taxation of improvements
to commercial and industrial structures. In determining the value
of the real property, the Borough shall regard the first $50,000 in
the Assessor’s full and true value of the improvements or conversion
alterations as not increasing the value of the property for a total
of five years, notwithstanding that the value of the property upon
which the construction or conversion occurs 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 structure through
action of the elements sufficient to warrant a reduction.
The governing body of the Borough of Glassboro is hereby authorized to enter into tax agreements for an exemption and abatement from taxation of new construction of commercial structures, industrial structures and multiple dwellings in accordance with the procedures set forth in §§ 422-8 through 422-14 of this article.
Applicants for tax exemption and abatement for a new construction of commercial structures, industrial structures and multiple dwellings pursuant to § 422-7 of this article shall provide the governing body of the Borough of Glassboro with an application setting forth the following information:
A.
A general description of a project for which exemption
and abatement is sought.
B.
A legal description of all real estate necessary for
the project.
C.
Plans, drawings and other documents as may be required
by the governing body to demonstrate the structure and design of the
project.
D.
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.
E.
A statement of the reasons for seeking tax exemption
and abatement on the project and a description of the benefits to
be realized by the applicant if a tax agreement is granted.
F.
Estimates of the cost of completing such project.
G.
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.
H.
If the project is a commercial or industrial structure,
a description of any lease agreement between the applicant and proposed
users of the project and a history and description of the user's businesses.
I.
If the project is a multiple dwelling, a description
of the number and types of dwelling units to be provided, a description
of the common elements or general common elements and a statement
of the proposed initial rentals or sales prices of the dwelling units
according to type and of any rental lease or resale restrictions to
apply to the dwelling units respecting low- or moderate-income housing;
J.
Such other pertinent information as the governing
body may require on a case-to-case basis.
The governing body of the Borough of Glassboro
may enter into a written agreement with an applicant for the exemption
and abatement of local property taxes. The agreement shall provide
for the applicant to pay the municipality in lieu of full property
taxes an amount equal to a percentage of taxes otherwise due according
to any one, but in no case a combination, of the following formulas
authorized by N.J.S.A. 40A:21-10:
A.
Cost basis. The agreement may provide for the applicant
to pay to the municipality in lieu of full property tax payments an
amount equal to 2% of the cost of the project or improvement. 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 municipality 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 payable
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 municipality 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.
(5)
In the fifth tax year, an amount not less than 80%
of taxes otherwise due.
A.
The 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. Except for projects subject to a tax agreement pursuant to § 422-7 of this article, the amount of the 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 the abatement and/or exemption, if any, allowed pursuant to this article, plus any portion of the assessed valuation of the improvement, conversion or construction not allowed an exemption pursuant to this article.
B.
All tax agreements entered into pursuant to this article
shall be in effect for no more than the five full tax years next following
the date of completion of the project. this article shall not preclude
the governing body from entering into a financial agreement for a
tax exemption and/or abatement pursuant to the Long Term Tax Exemption
Law[1] or any other statute authorizing a tax exemption and/or
abatement for a period longer than five years.
[1]
Editor's Note: See N.J.S.A. 40A:20-1 et seq.
C.
As a condition to granting an exemption or abatement,
a property owner shall be required to waive the filing of any tax
appeal for the subject property for the life of the exemption/abatement.
The Clerk of the Borough of Glassboro, pursuant
to N.J.S.A. 40A:21-11, shall forward a copy of all tax agreements
entered into pursuant to this article to the Director of the Division
of Local Government Services in the Department of Community affairs
within 30 days of the date of execution.
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 for
the abatement, the local property taxes due for all the prior years
subject to abatement and for the current year shall be payable as
if no exemption or abatement has been granted. The Tax Collector of
the Borough of Glassboro shall notify the property owner within 15
days of the date of disqualification of the amount of taxes due. In
the event that the subject property has been transferred to a new
owner, and it is determined that the new owner will continue to use
the property pursuant to the qualifying conditions, no tax shall be
due, the exemption and abatement shall continue and the agreement
shall remain in effect.
The Borough of Glassboro hereby determines that
an additional improvement, conversion or construction completed on
a property already granted a previous exemption or abatement pursuant
to this article during the period in which the previous exemption
or abatement is in effect shall qualify for an additional exemption
or abatement. The additional improvement, conversion or construction
shall be considered as separate for purposes of calculating the exemption
and abatement, 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 or construction for
the purpose of determining the assessed value of the property for
which any additional abatement is to be subtracted.
No exemption or abatement shall be granted or
tax agreement entered into pursuant to this article for any property
for which property taxes and/or other municipal charges are delinquent
or remain unpaid, or for which penalties for nonpayment of taxes are
due. As a condition to granting an exemption or abatement, a property
owner shall be required to waive the filing of any tax appeal for
the subject property for the life of the exemption/abatement.
Every application submitted pursuant to this
article shall be on a form prescribed by the Director of the Division
of Taxation and shall be filed with the Tax Assessor of the Borough
of Glassboro, as a condition to approval, within 30 days, including
Saturdays and Sundays, following the completion of the improvements,
conversion or construction.
At the termination of an agreement for tax abatement
or exemption authorized pursuant to this article, the project shall
be subject to all applicable real property taxes, as provided by state
laws and regulations and local ordinances, provided that nothing herein
shall be deemed to prohibit the project or improvement at the termination
of the agreement for tax exemption or abatement from qualifying for
and receiving the full benefits of any other tax preference provided
by law.
