(A) All tax abatement agreements must be authorized by a separate ordinance for each application.
(B) A tax abatement agreement shall provide for the applicant to pay to the Township in lieu of full property tax payments an amount annually to be computed by the following formula:
Tax phase-in basis — The applicant must pay to the Township in lieu of full property tax payments an amount equal to a percentage of taxes otherwise due, according to the following schedule:
(1) In the first full tax year from date of completion, no payment in lieu of taxes unless otherwise due;
(2) In the second tax year from date of completion, an amount not less than 20% of taxes otherwise due;
(3) In the third tax year from date of completion, an amount not less than 40% of taxes otherwise due;
(4) In the fourth tax year from date of completion, an amount not less than 60% of taxes otherwise due;
(5) In the fifth tax year from date of completion, an amount not less than 80% of taxes otherwise due.
(C) All tax agreements entered into by virtue of this chapter shall be in effect for no more than five full tax years from the date of completion of the project. Within 30 days of the execution of a tax abatement agreement, the Township shall forward a copy of said agreement to the Director of the Division of Local Government Services in the Department of Community Affairs.
(D) No exemption or abatement shall be granted, or tax agreement entered into, with respect to any property for which property taxes are delinquent or remain unpaid, or for which penalties for non-payment of taxes are due.
(E) 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 otherwise been payable for each tax year shall become due and payable from the property owner as if no abatement had been granted. The Township governing body shall notify the property owner and the Tax Collector of the disqualification, and upon such notice, the Tax Collector shall within 15 days thereof notify the owner of the property of the taxes due and payable to the Township. With respect to the disposal of 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 for tax abatement, no tax shall be due, the abatement shall continue and the agreement shall remain in effect.
(F) At termination of the tax abatement agreement, the property shall be subject to all applicable real property taxes as provided by law; 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.
(Ord. 355-19, passed 10-28-19)