2023 New Jersey Revised Statutes › Title 52 - State Government, Departments and Officers › Section 52:27D-489s - Authority of development entity.

52:27D-489s Authority of development entity.
24. a. A Garden State Growth Zone Development Entity is authorized to undertake clearance, re-planning, development, or redevelopment of property within a Garden State Growth Zone.
b. (1) Notwithstanding any other law to the contrary, every Garden State Growth Zone Development Entity that owns real property, or leases real property for a period of not less than 30 years, within a Garden State Growth Zone and that undertakes the clearance, re-planning, development, or redevelopment of such property is hereby granted an exemption on improvements to such eligible property for any new construction, improvements, or substantial rehabilitation of structures on real property for a period of 20 years from receiving a final Certificate of Occupancy, provided however, that a municipality located within the Garden State Growth Zone shall, by ordinance, opt-in to such program within 90 calendar days of the enactment of P.L.2013, c.161 (C.52:27D-489p et al.). The exemption allowed by this paragraph shall be dependent upon: (a) the owner, or lessee, of the real property making improvements to the real property after the enactment of P.L.2013, c.161 (C.52:27D-489p et al.); and (b) the Division of Codes and Standards, in consultation with the eligible municipality, issuing a final Certificate of Occupancy within 15 years of the date of enactment of P.L.2013, c.161 (C.52:27D-489p et al.) in the case of real property that is located in a government-restricted municipality, and within 10 years of the date of enactment of P.L.2013, c.161 (C.52:27D-489p et al.) in the case of real property that is not located in a government-restricted municipality.
(2) If a government-restricted municipality located within a Garden State Growth Zone did not opt-in to the program within 90 calendar days of the enactment of P.L.2013, c.161 (C.52:27D-489p et al.) pursuant to paragraph (1) of this subsection, then the government-restricted municipality located within a Garden State Growth Zone may, by ordinance, opt-in to such program within 90 calendar days of the enactment of P.L.2021, c.232. A Garden State Growth Zone Development Entity that owns real property, or leases real property for a period of not less than 30 years, within a government-restricted municipality that adopts an ordinance to opt-in pursuant to this paragraph, and that undertakes the clearance, re-planning, development, or redevelopment of such property is hereby granted an exemption on improvements to such eligible property for any new construction, improvements, or substantial rehabilitation of structures on real property for a period of 30 years from receiving a final Certificate of Occupancy. The exemption allowed by this paragraph shall be dependent upon: (a) the owner, or lessee, of the real property making improvements to the real property after the enactment of P.L.2013, c.161 (C.52:27D-489p et al.); and (b) the Division of Codes and Standards, in consultation with the eligible municipality, issuing a final Certificate of Occupancy within 15 years of the date of enactment of P.L.2013, c.161 (C.52:27D-489p et al.).
(3) Notwithstanding any other law to the contrary, the municipal assessor of a government-restricted municipality may extend the exemption period authorized pursuant to paragraph (1) of this subsection so that such exemption is granted for a period of 30 years from receiving a final Certificate of Occupancy. The extension allowed by this paragraph shall be dependent upon: (a) the government-restricted municipality having adopted an ordinance to opt-in to the program within 90 calendar days of the enactment of P.L.2013, c.161 (C.52:27D-489p et al.) pursuant to paragraph (1) of this subsection; (b) the municipal assessor authorizing an extension of the existing exemption to a period of 30 years as provided for in this paragraph; and (c) the Division of Codes and Standards, in consultation with the eligible municipality, issuing a final Certificate of Occupancy within 15 years of the date of enactment of P.L.2013, c.161 (C.52:27D-489p et al.). Upon authorization of an extension by the municipal assessor pursuant to this paragraph, the exemption schedule set forth in subsection d. of this section shall apply.
(4) For purposes of this section, a lessee of real property shall include a Garden State Growth Zone Development Entity that is a lessee that is subject to a statutory obligation to make a payment in lieu of taxes on the improvements equal to the taxes on real and personal property.
c. The exemption granted by paragraph (1) of subsection b. of this section shall be for a period of 20 years. For the first 10 years immediately subsequent to the issuance of a Certificate of Occupancy, the Garden State Growth Zone Development Entity shall be exempt from the payment of taxes on the improvements to the eligible property. Thereafter, the Garden State Growth Zone Development Entity shall pay to the municipality 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 eleventh year after completion, 10 percent of taxes otherwise due;
(2) In the twelfth year after completion, 20 percent of taxes otherwise due;
(3) In the thirteenth year after completion, 30 percent of taxes otherwise due;
(4) In the fourteenth year after completion, 40 percent of taxes otherwise due;
(5) In the fifteenth year after completion, 50 percent of taxes otherwise due;
(6) In the sixteenth year after completion, 60 percent of taxes otherwise due;
(7) In the seventeenth year after completion, 70 percent of taxes otherwise due;
(8) In the eighteenth year after completion, 80 percent of taxes otherwise due;
(9) In the nineteenth full year after completion, 90 percent of taxes otherwise due;
(10) In the twentieth year after completion, and each year thereafter, 100 percent of taxes.
d. The exemption granted by paragraph (2) of subsection b. of this section and an extended exemption period authorized by the municipal assessor of a government-restricted municipality pursuant to paragraph (3) of subsection b. of this section shall be for a period of 30 years. For the first 10 years immediately subsequent to the issuance of a Certificate of Occupancy, the Garden State Growth Zone Development Entity shall be exempt from the payment of taxes on the improvements to the eligible property. Thereafter, the Garden State Growth Zone Development Entity shall pay to the municipality 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 eleventh year after completion, five percent of taxes otherwise due;
(2) In the twelfth year after completion, 10 percent of taxes otherwise due;
(3) In the thirteenth year after completion, 15 percent of taxes otherwise due;
(4) In the fourteenth year after completion, 20 percent of taxes otherwise due;
(5) In the fifteenth year after completion, 25 percent of taxes otherwise due;
(6) In the sixteenth year after completion, 30 percent of taxes otherwise due;
(7) In the seventeenth year after completion, 35 percent of taxes otherwise due;
(8) In the eighteenth year after completion, 40 percent of taxes otherwise due;
(9) In the nineteenth year after completion, 45 percent of taxes otherwise due;
(10) In the twentieth year after completion, and each year thereafter, 50 percent of taxes;
(11) In the twenty-first year after completion, 55 percent of taxes otherwise due;
(12) In the twenty-second year after completion, 60 percent of taxes otherwise due;
(13) In the twenty-third year after completion, 65 percent of taxes otherwise due;
(14) In the twenty-fourth year after completion, 70 percent of taxes otherwise due;
(15) In the twenty-fifth year after completion, 75 percent of taxes otherwise due;
(16) In the twenty-sixth year after completion, 80 percent of taxes otherwise due;
(17) In the twenty-seventh year after completion, 85 percent of taxes otherwise due;
(18) In the twenty-eighth year after completion, 90 percent of taxes otherwise due;
(19) In the twenty-ninth year after completion, 95 percent of taxes otherwise due;
(20) In the thirtieth year after completion, and each year thereafter, 100 percent of taxes.
e. An amount not less than five percent of all payments pursuant to subsections c. and d. of this section shall be paid to the county in which the municipality is located.
f. Upon the termination of the exemption granted pursuant to subsections c. and d. of this section, the project, all affected parcels, land, and all improvements made thereto shall be assessed and subject to taxation as are other taxable properties in the municipality. After the date of termination, all restrictions and limitations upon the Garden State Growth Zone Development Entity shall terminate and be at an end upon the entity's rendering its final accounting to and with the municipality.
g. Notwithstanding subsection b. of this section, the owner of any property located within a Garden State Growth Zone, that does not qualify as a Garden State Growth Zone Development Entity, that performs any new construction, improvements, or substantial rehabilitation improvements to property, shall be entitled to an exemption from taxation regarding such improvements as provided herein. For purposes of such exemption, the municipality shall consider the assessor's full and true value of the improvements as not increasing the value of the property for a period of five years, notwithstanding that the value of the property to which the improvements are made is increased thereby.
h. Any exemption obtained under this section shall be fully transferable upon the sale of real property, as long as the new owner meets all requirements for exemption set forth pursuant to this section, or, for the sale of a residential unit, as long as the new owner occupies the unit as a primary residence.
i. A Garden State Growth Zone Development Entity shall not be required to purchase pinelands development credits under the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.), the pinelands comprehensive management plan, or any other rule or regulation adopted pursuant to that act, in connection with any approval or relief obtained related to property located in an aviation district on or after the effective date of P.L.2018, c.120, except if seeking to develop in permanently protected open space pursuant to the Pinelands Protection Act. The provisions of this subsection shall not apply to an eligible property that is residential property.
L.2013, c.161, s.24; amended 2014, c.63, s.9; 2018, c.120, s.8; 2021, c.232, s.2.