[HISTORY: Adopted by the Township Committee of the Township of Mantua as indicated in article histories. Amendments noted where applicable.]
[Adopted 9-10-2002 (Ch. 137, Art. I, of the 1978 Code)]
Editor's Note: This ordinance repealed the ordinance adopted 6-25-1996. It further provided that "All previous ordinances adopted by the Township of Mantua relating to abatements and exemptions for properties located in area designated in need of rehabilitation are superseded by the within ordinance."
The Township Committee hereby determines to utilize the authority granted under Article VIII, § I, Paragraph 6 of the New Jersey Constitution to reestablish the eligibility of dwellings, multiple dwellings, commercial and industrial structures for exemptions and abatements to the maximum degree permitted by FEAL throughout the area designated as in need of rehabilitation and affected neighboring properties.
This article authorizes the Township of Mantua to grant exemptions and abatements in the 2002 tax year and thereafter.
The Township Committee hereby determines to provide for the exemption from taxation of improvements to dwellings more than 20 years old.
In determining the value of real property, the Township shall regard the first $15,000 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, only in such instance where the improvement is appended to the dwelling and actually increases the square footage of the interior of the dwelling. Swimming pools and detached structures are not eligible for the exemption.
During the exemption period, the assessment on the property shall not be less than the assessment thereon existing immediately prior to the improvements, except if there is damage to the dwelling through action of the elements sufficient to warrant a reduction.
The aforementioned exemption amount shall be the maximum aggregate exemption per dwelling.
The Township Committee hereby determines to provide for an exemption from taxation of improvements to multiple dwellings or conversions or other buildings and structures, including unutilized public buildings, to multiple dwelling use. The term "improvements" is defined by FEAL and includes only changes which affect common areas or elements of three or more dwelling units within a multiple dwelling and does not include ordinary painting, repairs and replacement of maintenance items or an enlargement of the volume of an existing structure by more than 30%. The municipality shall regard the assessor's full and true value of the improvements or conversion alterations as not increasing the value of the property for a period of five years. This exemption is to be granted 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 existing thereon immediately prior to the improvement or conversion alteration, except if an abatement is granted in accordance with § 359-7 of this article or there is damage to the multiple dwelling through action of the elements sufficient to warrant a reduction.
The Township Committee hereby determines to provide an abatement to a multiple dwelling reducing the assessed value of the property as it existed immediately prior to receiving the exemption granted under § 359-6 of this article. This abatement shall be granted for a five-year period with the annual amount of the abatement to be 30% of the total cost of the improvement or conversion alteration. The total amount of abatements granted to any single property shall not exceed the total cost of the improvement or conversion alteration.
The Township Committee hereby determines to provide an exemption from taxation of improvements to commercial and industrial structures. Such an improvement, as defined under FEAL, shall not include ordinary painting, repairs and replacement items of an enlargement of the volume of the existing structure by more than 30%. The exemption shall be granted for a five-year period and shall not increase the value of the property by the value of the improvement, 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 be less than the assessment thereon existing immediately prior to the improvement, unless there is damage to the structure through action of the elements sufficient to warrant a reduction.
This article authorizes the exemption or abatement for improvements of multiple dwelling, commercial and industrial structures to be granted only by the governing body by ordinance on an individual basis after review, evaluation and approval of each application.
The Township Committee hereby determines to grant exemption and abatement from taxation for the new construction of commercial and industrial structures and multiple dwellings pursuant to the procedures set forth in FEAL and in this article.
Applicants for tax exemption and abatements for new construction of commercial or industrial structures or multiple dwellings shall provide the governing body of the Township of Mantua with an application setting forth the following information:
A general description of a project for which exemption and abatement is sought;
A legal description of all real estate necessary for the project;
Plans, drawings and other documents as may be required by the governing body to demonstrate the structure and design of the project;
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;
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;
Estimates of the cost of completing such project;
A statement showing the real property taxes currently being assessed at the project site; estimated tax payments that would be made annually by the applicant on the project during the period of the agreement; and 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;
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 users' businesses;
If the project is a multiple dwelling, a description of the number and type 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 dwelling units respecting low- or moderate-income housing;
Such other pertinent information as the governing body may require on a case-by-case basis.
Following the adoption of an ordinance authorizing a tax agreement for the particular project, the governing body of the Township of Mantua shall 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 equal to a percentage of taxes otherwise due according to the following schedule:
In the first full tax year after completion, no payment in lieu of taxes otherwise due;
In the second tax year, an amount not less than 20% of taxes otherwise due;
In the third tax year, an amount not less than 40% of taxes otherwise due;
In the fourth tax year, an amount not less than 60% of taxes otherwise due;
In the fifth tax year, an amount not less than 80% of taxes otherwise due.
The Township Clerk of the Township of Mantua is authorized to forward a copy of all executed abatement agreements entered into pursuant to this article to the Director of the Division of Local Government Services in the Department of Community Affairs within 30 days of the date of execution.
In the event a property owner subject to a tax agreement 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 had been granted. The Tax Collector of the Township of Mantua shall notify the property owner within 15 days of the date of disqualification of the amount of taxes due. In the event 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 Committee hereby determines that an additional improvement, conversion or construction completed on a property already granted a previous exemption or abatement pursuant to this article during the period in which the previous exemption or abatement is in effect shall qualify for an additional exemption or abatement. The additional improvement, conversion or construction shall be considered as separate for purposes of calculating the exemption and abatement, 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 or construction for the purpose of determining the assessed value of the property for which any additional abatement is to be subtracted.
No exemption or abatement shall be granted or tax agreement entered into pursuant to this article for any property for which property taxes 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.
Every application submitted pursuant to this article shall be on a form prescribed by the Director of the Division of Taxation and shall be filed with the Tax Assessor of the Township of Mantua as a condition to approval, within 30 days, including Saturdays and Sundays, following the completion of the improvement, conversion or construction.
At the termination of an agreement for tax abatement or exemption authorized pursuant to this article, 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 abatement from qualifying for and receiving the full benefits of any other tax preference provided by law.
[Adopted 10-2-2017 by Ord. No. O-15-2017]
It is the purpose of this article to implement the provision 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 3% on charges of rent for every occupancy of a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of § 3 of P.L. 1966, c. 30 (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.
A copy of this article shall be transmitted upon adoption or amendment to the State Treasurer, along with a list of the names and addresses of all hotels and motels located within the municipality. This article or any amendment thereof shall take effect on the first day of the first full month occurring 90 days after the date of transmittal to the State Treasurer. The Township shall provide annually, no later than January 1 of each year, a list of names and addresses of all of the hotels and motels located in the Township, which shall be updated as any new hotel or motel commences operation alter January 1 of any year.
There is hereby established a hotel and motel room occupancy tax in Mantua Township which shall be fixed at a uniform percentage rate of 3% on charges of rent for every occupancy of a room in Mantua Township in a hotel or motel subject to taxation pursuant to Subsection (d) of § 3 of P.L. 1966, c. 30, 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. Any unpaid taxes pursuant to this article shall be subject to interest at the rate of 5% per annum.
The terms used in this article, including but not limited to "hotel," "occupancy" and "room" shall be defined in N.J.S.A. 54:32B-2.
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 § 9 of P.L. 1966, c. 30 (N.J.S.A. 54:32B-9).
The hotel and motel room occupancy tax shall be administered in conformance with the requirements of P.L. 2003, c. 114:
All taxes imposed by this article shall be paid by the purchaser.
A hotel or motel establishment (hereinafter "vendor") shall not assume or absorb any tax imposed by this article.
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.
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 $1,500 for each offense.
The tax imposed by this article shall be collected on behalf of the Township 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 Township shall be joined as a party in any action or proceeding brought to collect the tax.
A person required to collect a tax imposed pursuant to the provisions of this chapter shall, on or before the dates required pursuant to § 17 of P.L. 1966, c. 30 (N.J.S.A. 54:32B-17), forward to the Director of the Division of Taxation in the New Jersey Department of the Treasury (hereinafter the "Director") the tax collected in the preceding month and make and file a return for the preceding month with the Director on any form and containing any information as the Director shall prescribe as necessary to determine liability for the tax in the preceding month during which the person was required to collect the tax.
The Director may permit or require returns to be made covering other periods and upon any dates as the Director may specify. In addition, the Director may require payments of tax liability at any intervals and based upon any classifications as the Director may designate. In prescribing any other periods to be covered by the return or intervals or classifications for payment of tax liability, the Director may take into account the dollar volume of tax involved as well as the need for ensuring the prompt and orderly collection of the tax imposed.
The Director may require amended returns to be filed within 20 days after notice and to contain the information specified in the notice.
The State Treasurer shall annually provide to the municipality written notification of nonpayment by a hotel or motel of taxes required to be paid under this chapter. The written notification required shall also authorize the municipality to act as the collection agent for the outstanding balance of taxes due and owing to it in place of the State Treasurer.
In the event that the tax imposed under this chapter is not paid as and when due by a hotel or motel, the unpaid balance, and any interest accruing thereon, shall be a lien on the parcel of real property comprising the hotel or motel in the same manner as all other unpaid municipal taxes, fees, or other charges. The lien shall be superior and paramount to the interest in such parcel of any owner, lessee, tenant, mortgagee, or other person, except the lien of municipal taxes and shall be on a parity with and deemed equal to the municipal lien on the parcel for unpaid property taxes due and owing in the same year.
The municipality shall file in the office of its tax collector a statement showing the amount and due date of the unpaid balance and identifying the lot and block number of the parcel of real property that comprises the delinquent hotel or motel. The lien shall be enforced as a municipal lien in the same manner as all other municipal liens are enforced.