[Adopted 8-14-1996 by Ord. No. 7-1996]
Exemptions from local real property taxes for new construction of commercial
or industrial structures may be granted on a tax phase-in basis pursuant to
N.J.S.A. 40A:21-10c for a five-year period, if authorized on an individual
basis after review, evaluation and approval of each application by the Township
Committee after proper application has been made. Application shall be upon
the form prescribed by the Director of the Division of Taxation in the Department
of the Treasury.
Applicants for tax exemption for construction of new industrial or commercial
structures shall provide the Township Committee with an application upon the
form prescribed by the Director of Taxation in the Department of the Treasury
and shall, in addition to the information requested on such form, set forth
in the application:
A. A general description of the construction for which exemption
is sought.
B. A legal description of all real estate necessary for
the construction.
C. Plans, drawings and other documents as may be required
by the Township Committee to demonstrate the structure and design of the construction.
D. A description of the number, classes and types of employees
to be employed at the construction site within two years of completion
of the construction.
E. A statement of the reasons for seeking tax exemption
on the construction and a description of the benefits to be realized by the
applicant if tax agreement is granted.
F. Estimates of the cost of completing the construction.
G. A statement showing the real property taxes currently
being assessed at the construction site, estimated tax payments that would
be made annually by the applicant on the construction during the period of
the tax agreement and estimated tax payments that would be made by the applicant
on the construction during the first full year following the termination of
the tax agreement.
H. A description of any lease agreement between the applicant
and proposed users of the construction and a history and description of the
users’ businesses.
I. Such other pertinent information as the Township Committee
may require.
Applications for tax agreements must be filed with the Tax Assessor
within 30 days, including Saturdays and Sundays, following the completion
of the construction, in order to be eligible for tax exemption thereon. The
following procedures, which are in accordance with N.J.S.A. 40A:21-10 through
N.J.S.A. 40A:21-13, shall govern tax agreements between the Township of Pittsgrove
and developers for the exemption of real property taxes. All tax agreements
shall be applied for and granted on a project basis.
A. Upon approval of an ordinance authorizing an agreement
for tax exemption for a particular project, the Township Committee shall enter
into a written agreement with the applicant for the exemption of local real
property taxes. The agreement shall provide for the applicant to pay to the
Township of Pittsgrove in lieu of full property tax payments an amount annually
to be computed by using the tax phase-in basis formula pursuant to subsection
c. of N.J.S.A. 40A:21-10. Payments shall be as follows:
(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.
B. All tax agreements hereunder shall be in effect for no
more than five full tax years next following the date of completion of the
construction.
C. All projects subject to tax agreement hereunder shall
be subject to all applicable federal, state and local laws and regulations
on pollution control, worker safety, discrimination in employment, housing
provision, zoning, planning and building code requirements. That percentage which the payment in lieu of taxes for a property
bears to the property tax which would have been paid had an exemption not
been granted for the property under the agreement shall be applied to the
valuation of the property to determine the reduced valuation of the property
to be included in the valuation of the municipality for determining equalization
for county tax apportionment and school aid during the term of the tax agreements
covering the properties, and at the termination of an agreement for a property
the reduced valuation procedure required under this section shall no longer
apply. Within 30 days after the execution of a tax agreement, the Township
of Pittsgrove shall forward a copy of the agreement to the Director of the
Division of Local Government Services in the Department of Community Affairs.
D. 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 exemption had been granted. The Township Committee
shall notify the property owner and Tax Collector forthwith and the Tax Collector
shall within 15 days thereof notify the owner of the property of the amount
of taxes due. However, with respect to the disposal of the 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 exemption shall continue and the agreement shall remain in effect.
At the termination of a tax agreement, a project shall be subject to all applicable
real property taxes as provided by state law and regulation and local ordinance;
but nothing herein shall prohibit a project, at the termination of an agreement,
from qualifying for and receiving the full benefits of any other tax preferences
provided by law.
E. The Assessor shall determine, on October 1 of the year
following the date of the completion of an improvement or construction, the
true taxable value thereof. Except for projects subject to tax agreement,
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, plus any portion of the assessed valuation of the improvement or construction
not allowed an exemption pursuant to this act. Subject to the provisions of
the adopting ordinance, the property shall continue to be treated in the appropriate
manner for each of the five full tax years subsequent to the original determination
by the Assessor.
F. Additional construction, completed on a property granted
a previous exemption pursuant to this act 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 construction shall be considered as separate for the purposes of
calculating exemption pursuant to this act.
G. No exemption shall be granted or tax agreement entered
into pursuant to this act with respect to any property for which property
taxes are delinquent or remain unpaid or for which penalties for nonpayment
of taxes are due.