Title
AN ORDINANCE AMENDING TITLE X FINANCE AND TAXATION, CHAPTER 23, FIVE-YEAR TAX EXEMPTION AND ABATEMENT, Section 5A, EXEMPTIONS AND ABATEMENTS FOR NEW MULTIPLE DWELLINGS CONSISTING OF CONDOMINIUM HOUSING UNITS OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, New Jersey, 2000, AS AMENDED AND SUPPLEMENTED, TO REINSTATE EXEMPTIONS AND ABATEMENTS FOR NEW MULTIPLE DWELLINGS CONSISTING OF CONDOMINIUM UNITS FOR AN ADDITIONAL PERIOD OF FIVE-YEARS.
Deferred 6F-c 052015
Body
WHEREAS, the Municipal Council adopted Ordinance 6PSF-j on January 21, 2009 which amended and supplemented Title X, Chapter 23, Five Year Tax Exemption and Abatement; and
WHEREAS Title X, Chapter 23, Section 5A, contained the following "sunset provision":
No exemption or abatement shall be granted under this Section 10:23-5A more than three (3) years following the date of final adoption of the Ordinance authorizing this amendment to Section 10:23-5A
; and
WHEREAS, this provision has expired and has not been renewed; and
WHEREAS, there are currently neighborhoods within the City of Newark which will substantially benefit from a renewal of the exemptions and abatements for new multiple dwellings consisting of condominium housing units and are in need of an extension of this law for an additional five (5) years; and
WHEREAS, the Municipal Council wishes to reinstate the exemptions and abatements since they will serve as an incentive for property owners to properly maintain and keep up their property.
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
(Note: New language is shown underlined and bold; deleted language is shown as strikethough.)
Section 1. Title X, Finance and Taxation, Chapter 23, Five-Year Tax Exemption and Abatement, Section 5A, Exemptions and Abatements for New Multiple Dwellings Consisting of Condominium Housing Units, of the Revised General Ordinances of the City of Newark, New Jersey, 2000, as amended and supplemented, is hereby amended and supplemented as follows:
10:23-5A. EXEMPTIONS AND ABATEMENTS FOR NEW MULTIPLE DWELLINGS CONSISTING OF CONDOMINIUM HOUSING UNITS.
In the case of construction of a multiple dwelling consisting of condominium housing units, or of conversions of other buildings and structures, including unutilized public buildings, to condominium housing use, or both, the owner of such property may apply for an exemption and abatement in respect of such project, stating separately (i) the "common elements" of such condominium as defined pursuant to the "Condominium Act," P.L. 1969, c.257 (C.46:8B-1 et seq.) and (ii) each proposed condominium housing unit which is intended to be subsequently conveyed by the applicant to an individual owner thereof (each, an "Eligible Property"). Such application shall be made in accordance with the provisions of N.J.S.A. 40A:21-9, and upon approval by the Governing Body of an ordinance authorizing a tax agreement for such project, the applicant (or, if an Eligible Property shall have been conveyed to an individual owner thereof and the requirements of the following paragraph have been satisfied, such owner) shall, in lieu of full property tax payments on the Eligible Property, pay to the municipality an amount annually equal to the following percentage of taxes otherwise due:
a. In the first full tax year after completion, no payment in lieu of taxes otherwise due on the Eligible Property;
b. In the second tax year, an amount not less than twenty (20%) percent of taxes otherwise due on the Eligible Property;
c. In the third tax year, an amount not less than forty (40%) percent of taxes, otherwise due on the Eligible Property;
d. In the fourth tax year, an amount not less than sixty (60%) percent of taxes, otherwise due on the Eligible Property; and
e. In the fifth tax year, an amount not less than eighty (80%) percent of taxes otherwise due on the Eligible Property.
If the applicant shall transfer ownership of an Eligible Property during the term of the applicable tax agreement, or if any transferee shall thereafter again transfer such ownership, the Municipal Council hereby determines that, in the absence of information to the contrary, each such subsequent owner shall continue to use the property pursuant to conditions which qualified the property for its abatement and/or exemption, and the tax agreement relating thereto shall be deemed to be assigned to and assumed by each such subsequent owner. Accordingly, the abatement and/or exemption shall continue notwithstanding such transfer, and the tax agreement shall remain in effect during the original term thereof.
No exemption or abatement shall be granted under this Section 10:23-5A more than three (3) years following the date of final adoption of the ordinance authorizing this amendment to Section 10:23-5A. No exemption or abatement shall be granted under this Section 10:23-5A more than five (5) years following the date of final adoption of this amendment to Section 10:23-5A of the Ordinance.
All other provisions of N.J.S.A. 40A:21-8 through N.J.S.A. 40A:21-13 shall be applicable to any exemption and abatement granted pursuant to this Section 10:23-5A. An ordinance authorizing an exemption and/or abatement pursuant to this Section 10:23-5A need not contain a form of tax agreement, but may instead refer to a form of tax agreement which has been approved by separate ordinance. Each such tax agreement shall require that the applicant (and any transferee of more than a single Eligible Property) shall provide written notice to each purchaser of an Eligible Property as to the existence and details of the exemption and/or abatement provided in the applicable tax agreement, together with instructions as to such actions, if any, such purchaser must take in order to remain entitled to the benefits thereof following such transfer.
SECTION 2. Any ordinance or provision of any ordinance that is inconsistent with this amendment is hereby repealed.
SECTION 3. If any part of this ordinance is declared unconstitutional or illegal, the remaining provisions shall continue in full force and effect.
SECTION 4. The ordinance shall take effect upon final passage and publication in accordance with the laws of the State of New Jersey.
STATEMENT
This amendment to Title X, Finance and Taxation, Chapter 23, Five-Year Tax Exemption and Abatement, Section 5A, Exemptions and Abatements for New Multiple Dwellings Consisting of Condominium Housing Units, of the Revised General Ordinances of the City of Newark, New Jersey, 2000, as amended and supplemented, reinstates exemptions and abatements for new multiple dwellings consisting of condominium units for an additional period of five-years.