The City of Paterson makes known its intention
to utilize the tax abatement and exemption provisions authorized by
Article VIII, Section 1, paragraph 6 of the New Jersey State Constitution,
as enacted through the provisions of N.J.S.A. 40A:21-1 et seq., to
permit and authorize tax exemption and abatement for the improvement
of one- or two-unit residential structures; the improvement, expansion
or construction of new commercial and industrial projects; the conversion
to, or improvement of, existing multiple dwellings; or a combination
of the above projects as defined herein. The intent of said property
tax exemptions and abatements is to induce construction and rehabilitation
of residential, industrial and commercial facilities and to stabilize
the economic base of Paterson.
As used in this article, the following terms
shall have the meanings indicated:
ABATEMENT
That portion of the assessed value of a property as it existed
prior to construction, improvement, or conversion of a building or
structure thereof which is exempted from taxation pursuant to this
article.
ASSESSOR
The office or official 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 products, or for research,
office, industrial, commercial, retail, recreational, hotel or motel
facilities, or warehousing purposes, or for any combination thereof
which the City Council of the City of Paterson 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.
COMPLETION
Substantially ready for the intended use for which a building
structure is constructed, improved or converted. The issuance of a
certificate of occupancy or the time at which a certificate of occupancy
could be issued, if requested, shall constitute completion.
CONSTRUCTION
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.
CONVERSION ALTERATION
The alteration or renovation of a nonresidential building
or structure, or hotel, motor hotel or guest house, in such manner
as to convert the building or structure from its previous use to use
as a dwelling or multiple dwelling.
DWELLING
A building or part of a building 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, (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 (N.J.S.A. 46:8A-1 et seq.)
or the Condominium Act (N.J.S.A. 46:8B-1 et seq.), or of a cooperative,
if the residential units are owned separately.
EXEMPTION
That portion of the assessor's full and true value of any
improvement, conversion alteration, or construction not regarded as
increasing the taxable value pursuant to this act.
IMPROVEMENT
A modernization, rehabilitation, renovation, or alteration
or repair which produces 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 multiple
dwelling, it includes only improvements which affect common areas
or elements, or three or more dwelling units within the multiple dwelling.
In the case of a multiple dwelling or commercial or industrial 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 act.
MULTIPLE DWELLING
A building or structure meeting the definition of "multiple
dwelling" set forth in the Hotel and Multiple Dwelling Law (N.J.S.A.
55:13A-1 et seq.), and means for the purpose of improvements or construction
the "general common element" and "common element" of a condominium,
a cooperative, or a horizontal property regime.
For the exemption from taxation of improvements
to dwellings, in determining the value of real property, the first
$25,000 in assessor's full and true value of improvements for each
dwelling primarily and directly affected by the improvement in any
dwelling more than 20 years old shall be regarded 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, 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.
With respect to the exemption from taxation
of improvements to multiple dwellings or of conversions of other buildings
and structures including unutilized public buildings to multiple dwelling
use, the assessor's full and true value of the improvements or conversion
alterations shall not be regarded as increasing the value of the property
for a period of five years, notwithstanding that the value of the
property to which the improvements or conversion alterations are made
is increased thereby. During the exemption, the assessment on the
property shall not be less than the assessment thereon existing immediately
prior to the improvements or conversion alterations, unless there
is damage to the multiple dwelling through action of the elements
sufficient to warrant a reduction.
In determining the value of real property for
purposes of granting exemption from taxation of improvements to commercial
or industrial structures, the assessor's full and true value of improvements
shall not be regarded as 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 structure through action of the elements
sufficient to warrant a reduction.
Applicants for tax exemption and abatement shall
provide the municipal governing body with an application setting forth:
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:
(1) The real property taxes currently being assessed at
the project site;
(2) Estimated tax payments that would be made annually
by the applicant on the project during the period of the agreement;
and
(3) 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 agreements between the applicants and proposed
users of the project, and a history and description of the users'
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 restriction to
apply to the dwelling units respecting low- or moderate-income housing;
J. Such other pertinent information as the governing
body may require.
The Assessor shall determine on October 1 of the year following the date of the completion of an improvement the true taxable value thereof. Except for projects subject to agreement pursuant to §
445-7, the amount of tax to be paid for the first full tax year following completion shall be based on the assessed valuation of a 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 article.
Any additional improvement, conversion or construction
completed on a property granted a previous exemption or abatement
pursuant to this article, during the period in which such previous
exemption or abatement is in effect, shall be qualified for an exemption,
or exemption and abatement, just as if such property had not received
a previous exemption or abatement. In such case, the additional improvement,
conversion or construction shall be considered as separate for the
purposes of calculating exemptions and abatements, 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 a property from which any additional abatement
is to be subtracted.
No exemption or abatement shall be granted 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 and abatement of real property
taxes provided by the City of Paterson 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.
All advertising costs for publishing the ordinance
to grant tax abatement to a particular project shall be paid by the
applicant.
Application for exemptions and abatements from
taxation may be filed to take initial effect for the first full tax
year commencing after the tax year in which this article is adopted
and for the tax years thereafter as set forth herein. No application
for exemptions or abatements shall be filed to take initial effect
for the 11th full tax year or thereafter, unless this article is readopted
by the governing body.