[Adopted 9-7-1967 as § 20-2
of the Revised General Ordinances]
The City hereby authorizes the utilization of tax exemption in accordance with Article VIII, Section I, Paragraph 6, of the New Jersey Constitution and establishes the eligibility of residential and multiple dwellings, commercial and industrial structures for five-year tax exemptions to the maximum degree permitted by N.J.S.A. 40A:21-1 et seq., throughout the entire City.
The words and phrases used in this article shall
have the meanings set forth in N.J.S.A. 40A:21-3.
Improvements to dwellings more than 25 years
old are eligible for tax exemption for a period of five years. If
approved, the City, in determining the value of the real estate, 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 the action of the elements
sufficient to warrant a reduction.
Construction of new dwellings or the conversions
of the buildings and structures to dwelling use, including unutilized
public buildings, are eligible for tax exemption for a period of five
years. If approved, the City, in determining value, shall regard 30%
of the Assessor's full and true value of the dwelling constructed
or conversion alterations made, as not increasing the value of the
property for a total up to five years, notwithstanding that the value
of the property upon which the construction or conversion occurs is
increased thereby.
Improvements to multiple dwellings or conversion
of other buildings and structures to multiple dwelling use, including
unused public buildings, are eligible for tax exemption for a period
of five years. If approved, the City, in determining value, shall
regard up to the Assessor's full and true value of the improvements
or conversion alterations as not increasing the value of the property,
notwithstanding that the value of the property to which the improvements
or conversion alterations 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 dwellings sufficient to warrant a reduction.
Improvements to commercial and industrial structures
are eligible for tax exemption for a period of five years. If approved,
the City, in determining value, shall regard up to the Assessor's
full and true value of the improvements as not increasing the value
of the property, notwithstanding that the value of the property to
which the improvements is 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 dwellings sufficient to warrant a reduction.
New construction of commercial and industrial
structures and multiple dwellings and new dwellings or conversions
to dwelling use in an Urban Enterprise Zone are eligible for tax exemption
for a period of five years. The owner shall enter into a written agreement
with the City to pay a tax on the improvement in an amount equal to
a percentage of taxes otherwise due according to the following schedule:
A.
In the first full tax year after completion, no payment
in lieu of taxes otherwise due.
B.
In the second full tax year, an amount not less than
20% of taxes otherwise due.
C.
In the third full tax year, an amount not less than
40% of taxes otherwise due.
D.
In the fourth tax year, an amount not less than 60%
of taxes otherwise due.
E.
In the fifth full tax year, an amount not less than
80% of taxes otherwise due.
All tax exemption agreements shall provide that
the tax shall be billed and collected in the same manner as any conventional
taxes and any arrearages shall accrue at that rate of interest charged
for delinquent real estate taxes and shall be subject to foreclosure.
Further, if any payments due under a tax exemption agreement shall
be delinquent for a period of 30 days, the tax exemption shall terminate
as of the date such payments first became delinquent.
Applications for tax exemption shall be filed
with the Tax Assessor. Every application shall be on a form prescribed
by the Director of the Division of Taxation in the Department of the
Treasury, and shall be filed with the Assessor within 30 days, including
Saturdays and Sundays, following the completion of the improvement,
conversion alteration or construction, and shall provide the following
information:
A.
A general description of the project for which exemption
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 City Council 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
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.
(3)
Estimated tax payments that would be made the applicant
on the project during the first full year following termination of
the agreement.
H.
If the project is a commercial or industrial structure,
a description of any lease agreements between the applicant and proposed
users of the project, and a history and description of the users'
business.
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 any rental lease or resale restrictions to apply
to the dwellings' units with respect to low- and moderate-income housing.
J.
Such other pertinent information as the City Council
may require.
Every application for exemption which is filed
within the time specified shall be approved and allowed by the Assessor
to the degree that the applications consistent with the provisions
of this article and the tax agreement, provided that the improvement,
conversion alteration or construction for which the applications made
qualifies as an improvement, a conversion alteration or construction
pursuant to the provisions of N.J.S.A. 40A:21-1 et seq., and the tax
agreement, if any. The granting of an exemption 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 of real property taxes provided
by the City pursuant to this article shall apply to property taxes
levied for municipal, school and county government purposes, and for
the purpose of funding any other property tax exemptions and abatements.
A.
The Tax Assessor is authorized to grant exemptions
and enter into tax agreements for newly constructed and improved dwellings
without review and approval by the City Council.
B.
The Tax Assessor is authorized to grant exemptions
and enter into tax agreements for multiple dwellings, commercial and
industrial structures without review and approval by the City Council
if the value of the improvements is determined to be less than $25,000.
If the value of the improvements equals or exceeds $25,000, then tax
exemptions and tax agreements shall be granted by resolution of the
City Council.
All tax agreements entered into pursuant to
this article shall be in effect for no more than five full tax years
next following the date of completion of the project.
All projects subject to tax agreement as provided
herein 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.
Within 30 days after the execution of a tax
agreement, the Tax Assessor shall forward a copy of the agreement
to the Director of the Division of Local Government Services in the
Department of Community Affairs.
The Tax Collector shall administer the terms
of the agreement during the period of the exemption.
The added assessment provisions of N.J.S.A.
54:4-63.3 and the omitted assessment provisions of N.J.S.A. 54:4-63.20
and 54:63-33 shall not be applicable to any property for which the
owner has been granted a tax exemption under this article.
A.
If during any tax year prior to the termination of
the tax agreement, the property owner ceases to operate, disposes
of the property or fails to meet the conditions for qualifying, then
the tax which would otherwise have been payable for each tax year
shall become due and payable from the property owner as if no exemption
had been granted. The Tax Assessor, on behalf of the City Council,
shall notify the property owner and the Tax Collector forthwith, and
the Tax Collector shall notify the property owner within 15 days of
the date of disqualification of the amount of taxes due. However,
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 qualifying conditions, no tax shall be due, the exemption shall
continue and the agreement shall remain in effect.
B.
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 ordinances, but nothing herein shall
prohibit a project, at the termination of an agreement, from qualifying
for and receiving the benefits of any other tax preference provided
by law.
An additional improvement, conversion alteration
or construction completed to a property already granted an exemption
during the period in which the exemption is in effect shall be eligible
for an additional exemption just as if such property had not received
a previous exemption. The additional improvement, conversion alteration
or construction shall be considered as separate for purposes of calculating
the exemption, except that the assessed value of any previous improvement,
conversion alteration or construction shall be added to the assessed
valuation as it was prior to that improvement, conversion alteration
or construction, for the purpose determining the assessed value of
the property from which any additional exemption is to be subtracted.
No exemption shall be granted for any property
for which property taxes or other municipal charges are delinquent
or remain unpaid, or for which penalties for nonpayment are due.
The Tax Collector shall include an appropriate
notice in the mailing of the annual property tax bills to each owner
of a dwelling located in an area in which exemption may be allowed
under this article.
A.
The Tax Assessor, on behalf of the City, shall report
on or before October 1 of each year to the Director of the Division
of Local Government Services in the Department of Community Affairs
and to the Director of the Division of Taxation in the Department
of the Treasury the total amount of real property taxes exempted within
the City in the current tax year for each of the following:
(1)
Improvement of dwellings.
(2)
Construction of dwellings.
(3)
Improvements and conversions of multiple dwellings.
(4)
Improvements of commercial or industrial structures.
(5)
Construction of multiple dwellings under tax agreements.
(6)
Construction of commercial or industrial structures
under tax agreements.
B.
In the case of Subsection A(5) and (6) above, the report shall state instead the total amount of payments made in lieu of taxes according to each formula utilized by the City, and the difference between that total amount and the total amount or real property taxes which would have been paid on the project had the tax agreement not been in effect for the current year.
