Pursuant to N.J.S.A. 40A:21-7, all improvements as defined in N.J.S.A. 40A:21-3, Subdivision n, to commercial or industrial structures being used as provided in § 346-14B below shall be exempt from real property taxes, on the improved portion only, for a period of five years if, after proper timely application has been made, the Tax Assessor determines that the improvement meets the intent and criteria established by the statute without compromising the equity of the tax structure.
A statement of the reasons for seeking tax abatement
on the project, and a description of the benefits to be realized by
the applicant if tax abatement is granted;
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 tax abatement; 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 abatement agreement.
Tax abatement applications will be considered for
approval for uses such as (This list is not complete or all inclusive,
but is representative of the types of projects the governing body
may encourage and consider.):
Scientific or industrial research engineering laboratory,
testing or experimental laboratory or similar establishments for research
or product development.
Transportation and trucking terminals, terminal
facilities for passengers and/or freight for trucks, railroads and
taxi and bus lines, including maintenance and service facilities.
Metal processing such as cleaning, finishing,
grinding, cutting, heat treating, plating, polishing, rustproofing
and sharpening; metal stamping and extrusion of small products.
All applications shall be filed with the Office of
the Tax Assessor. When the Tax Assessor deems the application complete,
it shall be forwarded to the Tax Abatement Committee which, in turn,
shall forward its recommendations to the governing body within 60
days of the Assessor deeming the application complete.
The agreement for abatement may permit multiuser projects
to be developed in phases. The five-year time period commences with
the occupancy of the first tenant or condominium owner in each phase.
Upon approval of an ordinance authorizing an agreement
for tax abatement for a particular project or projects, the governing
body may enter into written agreements with the applicants for abatement
of real property taxes. The agreement shall provide for the applicants
to pay to the municipality, in lieu of full property tax payments,
an amount to be computed pursuant to N.J.S.A. 40A:21-10, Subdivision
c, Tax phase-in basis. Pursuant to N.J.S.A. 40A:21-21, the township
shall provide timely reports, as required therein, to the Department
of Community Affairs and the Department of Treasury.
Any agreement for tax abatement adopted pursuant to
Township Ordinance No. O-2-91, adopted 2-26-1991, now repealed by
this article and state statute, shall be retroactively adopted and
approved and shall continue in effect as if previously adopted pursuant
to this article.