2682-22 Tax Exemption and Abatement Ordinance.pdf

6 #12938269.1 Applicants for tax exemption and abatement for new construction of commercial or industrial structures or multiple dwellings shall provide the municipal governing body with a completed application setting forth: a. A general description of a project for which exemption and abatement 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 governing body 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 (2) years of completion of the project; e. 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; 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, and (3) 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; 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' businesses; 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 of any rental lease or resale restrictions to apply to any dwellings’ units to be restricted for occupancy of low or moderate income housing; and j. Such other pertinent information as the governing body may require, or as may be required by the assessor. §22-1.6. Payment In Lieu of Taxes: Duration of Tax Exemption and Abatement Agreements; Application of Other Laws To Projects; Valuation of Tax-Abated Property For County Tax Apportionment; Copy of Agreement Forwarded To Director of Division of Local Government Services. a. During the term of the exemption and abatement granted pursuant to a tax agreement entered under

Tax Apportionment; Copy of Agreement Forwarded To Director of Division of Local Government Services. a. During the term of the exemption and abatement granted pursuant to a tax agreement entered under subsection 1.5 hereof, the applicant shall pay the municipality in lieu of full

7 #12938269.1 property tax payments an amount equal to a percentage of taxes otherwise due, according to the following schedule: 1. In the first full year after completion, no payment in lieu of taxes otherwise due; 2. In the second full year after completion, twenty (20%) percent of taxes otherwise due; 3. In the third full year after completion, forty (40%) percent of taxes otherwise due; 4. In the fourth full year after completion, sixty (60%) percent of taxes otherwise due; 5. In the fifth full year after completion, eighty (80%) percent of taxes otherwise due. b. All tax exemptions and abatements approved by the Township of West Orange shall be in effect for no more than the five (5) full tax years next following the date of completion of the project. No tax exemption or abatement shall be granted to become effective after the tax year 2032, unless this chapter is readopted by the governing body. c. All projects subject to tax exemption and/or abatement 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. d. 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 and/or abatement not been granted for the property 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 Township 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. e. Within thirty (30) days after the execution of a tax agreement, the Township of West Orange shall forward a copy of the agreement to the Director of the Division of Local Government Services in the Department of Community Affairs. §22-1.7. Tax Payments Due Upon Disqualification of Property Owner Prior To Termination of Agreement; Termination of Agreement. a. 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

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 and abatement had been granted. The governing body of the Township of West Orange shall notify the

8 #12938269.1 property owner and Tax Collector forthwith and the Tax Collector shall within fifteen (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 and the abatement 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 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. §22-1.8. Determination of Tax Due Upon Completion of Improvement, Conversion or Construction. The Assessor shall determine, on October 1 of the year following the date of the completion of an improvement, conversion or construction, the true taxable value thereof. Except for projects subject to a tax agreement, pursuant to subsection 1.5, 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, minus the amount of the abatement, if any, allowed pursuant to this chapter, plus any portion of the assessed valuation of the improvement, conversion or construction not allowed as an exemption under this chapter. Subject to the provisions of this chapter, 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. §22-1.9. Additional Improvement, Conversion or Construction; Eligibility for Exemption and Abatement. Any additional improvement, conversion or construction, completed on a property granted a previous exemption or abatement pursuant to this chapter 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 case, the additional improvement, conversion or construction shall be considered as separate for the purposes of calculating exemptions and abatements pursuant to

vious exemption or abatement. In such case, the additional improvement, conversion or construction shall be considered as separate for the purposes of calculating exemptions and abatements pursuant to this chapter, 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. Unless provided by ordinance, no additional exemption or abatement shall be allowed unless a new application is submitted to the governing body and a new agreement has been executed. §22-1.10. Ineligibility of Property for Which Property Taxes or Penalties Are Due.

9 #12938269.1 No exemption or abatement shall be granted, or tax agreement entered into, pursuant to this chapter with respect to any property for which property taxes are delinquent or remain unpaid, or for which penalties for nonpayment of taxes are due. §22-1.11. Application; Approval; Recording As Part of Tax Records. No exemption or abatement shall be granted pursuant to this chapter except upon written application therefor filed with and approved by the Assessor of the Township of West Orange. Every application shall be on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury, and provided for the use of claimants by the governing body of the Township of West Orange, and shall be filed with the Assessor within thirty (30) days, including Saturdays, Sundays and holidays, following the completion of the improvement, conversion alteration or construction. Every application for exemption, or exemption and abatement, within the Township of West Orange which is filed within the time specified, shall be approved and allowed by the Assessor to the degree that the application is consistent with the provision of this chapter or the tax agreement, provided that the improvement, conversion, alteration or construction for which the application is made qualifies as an improvement, a conversion, alteration or construction pursuant to the provisions of this chapter. Such approval of an abatement is subject to the approval of the governing body where required by this chapter, and also subject to approval by them of a tax agreement where required. The granting of an exemption, or exemption and abatement, 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. §22-1.12. Property Taxes Subject To Exemption and Abatement Provisions. The exemption and abatement of real property taxes provided by the Township of West Orange pursuant to this chapter shall apply to property taxes levied for municipal purposes, school purposes, County government purposes and for the purposes of funding any other property tax exemptions or abatements. §22-1.13 Notice To Taxpayers of Adoption of Chapter Establishing Exemptions and Abatements Included With Property Tax Bills. The Tax Collector or other responsible officer designated

ns or abatements. §22-1.13 Notice To Taxpayers of Adoption of Chapter Establishing Exemptions and Abatements Included With Property Tax Bills. The Tax Collector or other responsible officer designated by the governing body shall include a notice in the mailing of annual property tax bills to each owner of a dwelling located within the Township of West Orange of the availability of the exemptions and abatements that are allowed pursuant to the chapter during the first year following adoption of the chapter. §22-1.14. Annual Report; Total Amounts of Tax Exempted and Abated. The governing body 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 and the total amount abated within the municipality in the current tax year for each of the following:

10 #12938269.1 a. Improvements of dwellings; b. Construction of dwellings; c. Improvements and conversions of multiple dwellings; d. Improvements of commercial or industrial structures; e. Construction of multiple dwellings under tax agreements; and f. Construction of commercial or industrial structures under tax agreements. In the case of paragraphs e and f above, the report shall state instead the total amount of payments made in lieu of taxes according to the formula utilized by the municipality, and the difference between that total amount and the total amount of real property taxes which would have been paid on the project had the tax agreement not been in effect, for the current tax year. Section 2. If any provision of this Ordinance or application thereof, under any circumstances, is held invalid, the invalidity shall not affect any other provisions or applications of this Ordinance that can be given effect without the invalid provision(s) or application(s) and to this end the provisions of this Ordinance are severable. Section 3. All other Ordinances or parts of Ordinances inconsistent with this Ordinance are hereby repealed. Section 4. This Ordinance shall take effect upon final passage and publication in accordance with law. ROBERT D. PARISI, MAYOR SUSAN McCARTNEY, COUNCIL PRESIDENT KAREN J. CARNEVALE, R.M.C. MUNICIPAL CLERK INTRODUCED: April 5, 2022 ADOPTED: April 26, 2022