Highlands Tax Abatement
2-8.5 Exemption and Abatement From Taxation Pursuant to N.J.S.A. 40A:21-1.
a. Purpose. The Borough of Highlands seeks to encourage property owners to improve their property by offering certain tax incentives for limited periods of time upon completion of improvements or conversion or construction of structures as defined by law.
b. Definition of Terms. Unless otherwise specifically provided in this section the definition of all words and terms used in this section shall be those provided in N.J.S.A. 40A:21-1 entitled "The Five-Year Exemption and Abatement Law."
c. Area In Need of Rehabilitation. The entire Borough of Highlands shall be designated an area in need of rehabilitation.
d. Eligibility. All nonresidential structures including commercial and industrial structures shall be eligible for exemptions from taxation as provided in this section for improvements, conversions, construction or all of these.
e. Exemptions For Improvements to Dwellings or Multiple Dwellings, Conversions of Other Buildings to Multiple Dwelling Use. There shall be an exemption from taxation of improvements to dwellings, and/or multiple dwellings of the first fifteen thousand ($15,000.00) dollars of the assessor's full and true value of improvements for each dwelling unit primarily and directly affected by the improvement in any dwelling more than 20 years old, as not increasing the value of the property for a period of five years.
f. Exemptions For Improvements to Commercial or Individual Structures. After a review and evaluation of an application for exemption on an individual basis, the governing body is authorized to approve, by resolution, an exemption from taxation of up to the assessor's full and true value of the improvements to commercial or industrial structures.
g. Tax Agreements for Exemption for Construction of Commercial or Industrial Structures. Applicants for exemption from taxation for construction of commercial structures, industrial structures or multiple dwellings shall comply with the following procedures:
1. Complete an application that provides the governing body with all information required by N.J.S.A. 40A:21-9 and its amendments or supplements.
2. After the governing body adopts an ordinance authorizing a tax agreement for the particular project for which the application has been made, enter into an agreement with the governing body for tax exemption which shall provide the applicant to pay the Borough of Highlands in lieu of full property tax payments an amount annually to be computed by one, but in no case a combination, of the formulas set forth in N.J.S.A. 40A:21-10,
(a) Cost basis, or
(b) Gross revenue basis, or
(c) Tax phase in basis
The governing body shall not be required to enter into any agreement if the applicant does not agree to the same formula that the borough determines is in the best interest of the borough.