Borough of Brooklawn, NJ
Camden County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the Borough of Brooklawn 4-13-2000 by Ord. No. 2-00;[1] amended in its entirety 8-21-2017 by Ord. No. 17-17. Subsequent amendments noted where applicable.]
[1]
Editor’s Note: This ordinance also superseded former Ch. 130, Taxation, Art. I, Tax Abatement for Residential Property Improvements, adopted 7-19-1978 by Ord. No. 199.
The following procedures shall govern agreements for tax abatements and exemptions entered into by the Borough Council of Brooklawn Borough and property owners and developers:
A. 
Application process.
(1) 
All improvements, as defined in N.J.S.A. 40A:21-3n, shall be exempt from local real property taxes, if approved by the Tax Assessor as to the completeness, and then approved by Borough Council. Application shall be upon the form approved by the Borough Council and the Borough Tax Assessor.
(2) 
Applicants shall be encouraged to apply for tax exemption on improvements prior to the commencement of construction of the improvement, provided that the applicant must file a proper application with the Tax Assessor within 30 days of the completion of the improvement in order to be eligible for tax exemption thereon.
(3) 
Every properly completed application for exemption on a single-family residential property, having one or more improvements, which is filed within 30 days of the completion of the improvement shall be approved and allowed or disapproved by the Assessor within 60 days of its filing.
B. 
Applications. Applications for tax abatement and/or exemption on projects shall be provided to the Borough Council through the Borough Assessor, setting forth:
(1) 
A general description of the project for which abatement is sought.
(2) 
A legal description of all real estate necessary for the project.
(3) 
Plans, drawings and other documents as may be required by the Borough Council to demonstrate the structure and design of the project.
(4) 
A description of the number, classes and types of employees to be employed at the project site within two years of completion of the project.
(5) 
A statement of the reasons for seeking tax abatement and/or exemption on the project and a description of the benefits to be realized by the applicant if tax abatement is granted.
(6) 
Estimates of the cost of completing such project.
(7) 
A statement showing:
(a) 
The real property taxes currently being assessed at the project site.
(b) 
The estimated tax payments that would be made annually by the applicant on the project during the period of the agreement.
(c) 
The 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.
(8) 
If the project is a commercial or industrial building, a description of any lease agreements between the applicant and proposed users of the project and a history and description of the user's business.
(9) 
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 or resale restrictions to apply to the dwelling units respecting low- or moderate-income housing.
(10) 
Such other pertinent information as the Borough Council may require.
C. 
Exemptions and abatements on residential dwellings.
(1) 
Exemptions. With regard to the exemption from taxation of improvements to dwellings, in determining the value of real property, the Borough shall regard the first $25,000 in Assessor's full and true value of improvements for each dwelling unit primarily and directly affected by the improvement in any dwelling more than 20 years old, 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 an abatement is granted pursuant to Subsection C(2) of this section, or there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
(2) 
Abatements for improvements. The Borough Council may abate some portion of the assessed value of property receiving the abatement as it existed immediately prior to the improvement. An abatement for a dwelling may be granted with respect to that property for a total of up to five years, but the annual amount of the abatement granted to any single property shall not exceed 30% of the annual amount of the abatement granted under this article. The abatement period and the annual percentage of the abatement to be granted shall be set forth in the specific ordinance which may include a schedule providing for a different percentage of abatement up to 30% for each year of the abatement period.
(3) 
Abatement for new construction and/or conversions. The Borough Council may abate some portion of the assessed valuation of construction of new dwellings or of conversions of other buildings and structures, including unutilized public buildings, to dwelling use, or both. In determining the value of real property, the municipality shall regard a percentage, not to exceed 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. The abatement period and the annual percentage of the abatement to be granted shall be set forth in the specific ordinance, which may include a schedule providing for a different percentage of abatement, up to 30%, for each year of the abatement period.
(4) 
Joint abatement and exemption. A project-specific ordinance providing for exemption may also provide for the abatement of some portion of the assessed value of property receiving the abatement of 30% as it existed immediately prior to the improvement or conversion alteration. The annual amount of the abatement shall not exceed 30% of the total cost of the improvement or conversion alteration, and the total amount of abatement and exemption granted to any single property shall not exceed the total cost of the improvement or conversion alteration. The abatement period and the annual percentage of the abatement to be granted shall be set forth in the specific ordinance which may include a schedule providing for a different percentage or abatement, up to 30%, for each year of the abatement period.
D. 
Exemptions and abatements on commercial and industrial structures.
(1) 
With regard to the exemption from taxation of improvements to commercial or industrial structures in determining the value of real property, the municipality shall regard up to the Assessor's full and true value of 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 structure through action of the elements sufficient to warrant a reduction.
(2) 
With regard to exemptions and/or abatements for any improvements other than single-family residential property, the Borough shall authorize exemption for improvements on an individual basis after review, evaluation and approval of each application by the Borough Council.
An 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 a case, the additional improvement, conversion or construction shall be considered as separate for the purposes of calculating exemptions and abatements pursuant to this article, 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 the property from which any additional abatement is to be subtracted.
Upon approval of a specific ordinance authorizing an agreement for tax exemption for a particular project, the Borough Council shall enter into a written agreement with the applicant for the exemption of full real property taxes. The agreement shall provide for the applicant to pay to the Borough of Brooklawn, in lieu of full property tax payments, an amount annually in accordance with N.J.S.A. 40A:20-1 et seq.
No exemption or abatement shall be granted, or tax agreement entered into, pursuant to this article with respect to any property for which property taxes are delinquent or remain unpaid or for which penalties for nonpayment of taxes are due.
It is the purpose of this article to implement the provisions of P.L. 2003, c. 114, which authorizes the governing body of a municipality to adopt an ordinance imposing a tax at a uniform percentage rate not to exceed 1% on charges of rent for every occupancy on or after July 1, 2003, but before July 1, 2004, and not to exceed 3% on charges of rent for every occupancy on or after July 1, 2004, of a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of section 3 of P.L. 1966, c. 40 (N.J.S.A. 54:32B-3) which shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of a hotel room.
There is hereby established a hotel and motel room occupancy tax in the Borough of Brooklawn which shall be fixed at a uniform percentage rate of 1% on charges of rent for every occupancy of a hotel or motel room in the Borough of Brooklawn on or after July 1, 2003, but before July 1, 2004, and 3% on charges of rent for every occupancy of a hotel or motel room in the Borough of Brooklawn on or after July 1, 2004, of a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of section 3 of P.L. 1966, c. 40, N.J.S.A. 54:32B-3 (sales tax).
The hotel and motel room occupancy tax shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of a hotel room.
The hotel and motel room occupancy tax authorized herein shall not be imposed on the rent for an occupancy if the purchaser, user or consumer is an entity exempt from the tax imposed on an occupancy under the Sales and Use Tax Act pursuant to Subsection (a) of Section 9 of P.L. 1966, c. 30 (N.J.S.A. 54:32B-9).
In accordance with the requirements of P.L. 2003, c. 114:
A. 
All taxes imposed by this article shall be paid by the purchaser.
B. 
A vendor shall not assume or absorb any tax imposed by this article.
C. 
A vendor shall not in any manner advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the tax will be assumed or absorbed by the vendor, that the tax will not be separately charged and stated to the customer, or that the tax will be refunded to the customer.
D. 
Each assumption or absorption by a vendor of the tax shall be deemed a separate offense and each representation or advertisement by a vendor for each day that the representation or advertisement continues shall be deemed a separate offense.
E. 
The penalty for violation of the foregoing provisions shall be up to $500 or 90 days in jail, or both, at the discretion of the Judge of the Municipal Court, for each offense.
The tax imposed by this article shall be collected on behalf of the Borough by the person collecting the rent from the hotel or motel customer. Each person required to collect the tax herein imposed shall be personally liable for the tax imposed, collected or required to be collected hereunder. Any such person shall have the same right in respect to collecting the tax from a customer as if the tax were a part of the rent and payable at the same time, provided that the chief financial officer of the Borough shall be joined as a party in any action or proceeding brought to collect the tax.