[HISTORY: Adopted by the Township Council
of the Township of Medford 6-13-2006 by Ord. No. 2006-8. Amendments noted where
applicable.]
The Council hereby determines to utilize the
authority granted under Article VIII, Section I, paragraph 6 of the
New Jersey Constitution to establish the eligibility of residential
dwellings, multiple dwellings, condominiums and cooperatives, commercial
and industrial structures for exemptions and abatements permitted
by P.L. 1991, c. 441 (See N.J.S.A. 40A:21-1et seq.), throughout areas
designated, or to be designated, as in need of redevelopment.
This article authorizes, but does not require,
the Township of Medford to grant exemptions and abatements to commence
and take effect in the 2007 tax year and thereafter.
[Amended 8-6-2013 by Ord. No. 2013-11]
The Township Council is hereby authorized, at
its discretion, to enter into tax agreements for an exemption and/or
abatement from taxation of new construction and improvements of commercial
structures, industrial structures, dwellings and multiple dwellings
located within areas designated in need of redevelopment or rehabilitation
by the Planning Board in accordance with N.J.S.A. 40A:12A-1 et seq.,
the Local Redevelopment and Housing Law, and other New Jersey Statutes.
[Added 8-6-2013 by Ord. No. 2013-11]
A.
Exemptions for improvements to dwellings. Within a designated area for rehabilitation, the Tax Assessor, upon the timely receipt of the property application (pursuant to § 131-4) for a property more than 20 years old, and verification of the information contained therein, shall, in determining the value of the real property, regard the first $25,000 of true value or the improvement as not increasing the taxable value of the property for a period of five years. Certain housing improvements to accommodate disabled persons shall also qualify for tax exemption under this section, pursuant to N.J.S.A. 40A:21-6.2.
B.
Exemptions
for improvements to multiple dwellings, mixed use, commercial and
industrial structures. Within a designated area for rehabilitation,
improvements to multiple dwellings, mixed use, commercial and industrial
structures are eligible for tax exemption for a period of five years
commencing with the completion of an improvement. The Assessor's full
and true value of the improvements shall be regarded as not increasing
the value of the property notwithstanding that the value of the property
to which the improvement is made is increased thereby. During the
exemption period, the assessment on the property shall not he less
than the assessment existing thereon immediately prior to the improvements,
unless there is damage to the structure through action or the elements
sufficient to warrant a reduction.
Applicants for tax exemption and abatement for a new construction of commercial structures, industrial structures and multiple dwellings pursuant to § 131-3 of this chapter shall provide the Township Council with an application setting forth certain information. A copy of the application is attached hereto as Exhibit A.[1]
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 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 dwellings' units respecting low- or moderate-income housing;
J.
A cost benefit analysis, if requested by the Township
Manager, demonstrating to the satisfaction of the Township Council
that the granting of tax abatement will, on balance, promote commerce
and the generation of future tax ratables for Medford Township.
[Amended 8-6-2013 by Ord. No. 2013-11]
[1]
Editor's Note: Said application is on file
in the Township's offices.
The governing body of the Township of Medford
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 annually to be computed by 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 redevelopment 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 5% 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, the Council
may authorize 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.
The following procedure shall be applied to
applications for exemption and abatement:
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.
B.
All tax agreements entered into pursuant to this chapter
shall be in effect for no more than the five full tax years next following
the date of completion of the project. This chapter 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 or any other statute authorizing a tax exemption and/or abatement
for a period longer than five years.
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 Township Clerk, pursuant to N.J.S.A. 40A:21-11,
shall forward a copy of all tax agreements entered into pursuant to
this chapter 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 Township of Medford 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 Township of Medford hereby determines that
an additional improvement, conversion or construction completed on
a property already granted a previous exemption or abatement pursuant
to this chapter during the period in which the previous exemption
or abatement is in effect may qualify for an additional exemption
or abatement. The additional improvement, conversion or construction
may be considered as separate for purposes of calculating the exemption
and abatement, except that the assessed value of any previous improvement,
conversion or construction may 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. Any additional
exemption or abatement must be reviewed and approved by the Township
Council.
No exemption or abatement shall be granted or
tax agreement entered into pursuant to this chapter 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.
[Amended 8-6-2013 by Ord. No. 2013-11]
No exemption or abatement shall be granted or
tax agreement entered into pursuant to this chapter except upon written
application therefor filed with the Tax Assessor. Every application
shall be on the form on file in the Township's offices and shall be
filed with the Assessor before the commencement of the construction
project for improvements, conversion, alteration or construction.
At the termination of an agreement for tax abatement
or exemption authorized pursuant to this chapter, 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.
Every application for exemption, or exemption and abatement, within a municipality adopting the provisions of this act, which is filed within the time specified, shall be approved and allowed by the Assessor to the degree that the application is consistent with the tax agreement executed by Township Council in accordance with § 131-5 hereof. The granting of an exemption, or exemption and abatement, or tax agreement shall be recorded and made a permanent part of the official tax records of the taxing district, which record shall contain a notice of the termination date thereof.
The exemption and abatement of real property
taxes provided by the Township pursuant to this chapter shall apply
to property taxes levied for municipal purposes, school purposes,
county government purposes and for the purpose of funding any other
property tax exemptions or abatements.
[Added 8-6-2013 by Ord. No. 2013-11]
Except upon application and a showing by the property owner
of convening circumstances to the Township Council, no renewal of
exemption or abatement shall be granted at the conclusion of the five-year
exemption/abatement term.
