New Jersey § 34:1b-243

§ 34:1b-243.

As used in P.L.2011, c. 149 ( C.34:1B-242 et seq. ): “ Affiliate ” means an entity that directly or indirectly controls, is under common control with,

or is controlled by the business. Control exists in all cases in which the entity is a member of a controlled group

of corporations as defined pursuant to section 1563 of the Internal Revenue Code of 1986 ( 26 U.S.C. s.1563 ) or the entity is an organization in a group of organizations under common control

as defined pursuant to subsection (b) or (c) of section 414 of the Internal Revenue Code of 1986 ( 26 U.S.C. s.414 ). A taxpayer may establish by clear and convincing evidence, as determined by the Director

of the Division of Taxation in the Department of the Treasury, that control exists

in situations involving lesser percentages of ownership than required by those statutes.

An affiliate of a business may contribute to meeting either the qualified investment

or full-time employee requirements of a business that applies for a credit under section

3 of P.L.2007, c. 346 ( C.34:1B-209 ). “ Authority ” means the New Jersey Economic Development Authority established by section 4 of

P.L.1974, c. 80 ( C.34:1B-4 ). “ Aviation district ” means all areas within the boundaries of the “Atlantic City International Airport,”

established pursuant to section 24 of P.L.1991, c. 252 ( C.27:25A-24 ), and the Federal Aviation Administration William J. Hughes Technical Center and

the area within a one-mile radius of the outermost boundary of the “Atlantic City

International Airport” and the Federal Aviation Administration William J. Hughes Technical

Center. “ Business ” means an applicant proposing to own or lease premises in a qualified business facility

that is: a corporation that is subject to the tax imposed pursuant to section 5 of P.L.1945,

c. 162 ( C.54:10A-5 ); a corporation that is subject to the tax imposed pursuant to sections 2 and 3 of P.L.1945,

c. 132 ( C.54:18A-2 and C.54:18A-3 ), section 1 of P.L.1950, c. 231 ( C.17:32-15 ) or N.J.S.17B:23-5 ; a partnership; an S corporation; a limited liability company; or a non-profit corporation. If the business or tenant is a cooperative or part of a cooperative, then the cooperative

may qualify for credits by counting the full-time employees and capital investments

of its member organizations, and the cooperative may distribute credits to its member

organizations. If the business or tenant is a cooperative that leases to its member organizations,

the lease shall be treated as a lease to an affiliate or affiliates. A business shall include an affiliate of the business if that business applies for

a credit based upon any capital investment made by or full-time employees of an affiliate. “ Capital investment ” in a qualified business facility means expenses by a business or any affiliate of

the business incurred after application for: a. site preparation and construction, repair, renovation, improvement, equipping,

or furnishing on real property or of a building, structure, facility, or improvement

to real property; b. obtaining and installing furnishings and machinery, apparatus, or equipment, including

but not limited to material goods subject to bonus depreciation under sections 168 and 179 of the federal Internal Revenue Code ( 26 U.S.C. s.168 and s.179), for the operation of a business on real property or in a building, structure,

facility, or improvement to real property; c. receiving Highlands Development Credits under the Highlands Transfer Development

Rights Program authorized pursuant to section 13 of P.L.2004, c. 120 ( C.13:20-13 ); or d. any of the foregoing. In addition to the foregoing, in a Garden State Growth Zone, the following qualify

as a capital investment: any development, redevelopment, and relocation costs, including,

but not limited to, site acquisition if made within 24 months of application to the

authority, engineering, legal, accounting, and other professional services required;

and relocation, environmental remediation, and infrastructure improvements for the

project area, including, but not limited to, on- and off-site utility, road, pier,

wharf, bulkhead, or sidewalk construction or repair. In addition to the foregoing, if a business acquires or leases a qualified business

facility, the capital investment made or acquired by the seller or owner, as the case

may be, if pertaining primarily to the premises of the qualified business facility,

shall be considered a capital investment by the business and, if pertaining generally

to the qualified business facility being acquired or leased, shall be allocated to

the premises of the qualified business facility on the basis of the gross leasable

area of the premises in relation to the total gross leasable area in the qualified

business facility. The capital investment described herein may include any capital investment made or

acquired within 24 months prior to the date of application so long as the amount of

capital investment made or acquired by the business, any affiliate of the business,

or any owner after the date of application equals at least 50 percent of the amount

of capital investment, allocated to the premises of the qualified business facility

being acquired or leased on the basis of the gross leasable area of the premises in

relation to the total gross leasable area in the qualified business facility made

or acquired prior to the date of application. “ College or university ” means a county college, an independent institution of higher education, a public

research university, or a State college. “ Commitment period ” means the period of time that is 1.5 times the eligibility period. “ County college ” means an educational institution established by one or more counties, pursuant to

chapter 64A of Title 18A of the New Jersey Statutes. “ Deep poverty pocket ” means a population census tract having a poverty level of 20 percent or more, and

which is located within the qualified incentive area and has been determined by the

authority to be an area appropriate for development and in need of economic development

incentive assistance. “ Disaster recovery project ” means a project located on property that has been wholly or substantially damaged

or destroyed as a result of a federally-declared disaster which, after utilizing all

disaster funds available from federal, State, county, and local funding sources, demonstrates

to the satisfaction of the authority that access to additional funding authorized

pursuant to the “New Jersey Economic Opportunity Act of 2013,” P.L.2013, c. 161 ( C.52:27D-489p et al.), is necessary to complete the redevelopment project, and which is located

within the qualified incentive area and has been determined by the authority to be

in an area appropriate for development and in need of economic development incentive

assistance. “ Distressed municipality ” means a municipality that is qualified to receive assistance under P.L.1978, c.

14 ( C.52:27D-178 et seq. ), a municipality under the supervision of the Local Finance Board pursuant to the

provisions of the “Local Government Supervision Act (1947),” P.L.1947, c. 151 ( C.52:27BB-1 et seq. ), a municipality identified by the Director of the Division of Local Government Services

in the Department of Community Affairs to be facing serious fiscal distress, a SDA

municipality, or a municipality in which a major rail station is located. “ Doctoral university ” means a university located within New Jersey that is classified as a doctoral university

under the Carnegie Classification of Institutions of Higher Education's Basic Classification

methodology on the effective date of P.L.2017, c. 221 . “ Eligibility period ” means the period in which a business may claim a tax credit under the Grow New Jersey

Assistance Program, beginning with the tax period in which the authority accepts certification

of the business that it has met the capital investment and employment requirements

of the Grow New Jersey Assistance Program and extending thereafter for a term of not

more than 10 years, with the term to be determined solely at the discretion of the

applicant. “ Eligible position ” or “ full-time job ” means a full-time position in a business in this State, which position the business

has filled with a full-time employee, who shall have their primary office at the qualified

business facility and spend at least 60 percent of their time at the qualified business

facility. This requirement shall supersede any law, regulation, or incentive agreement that

imposes a requirement that the employee be present at the qualified business facility

for a specified percentage of time greater than 60 percent. This amendment shall not alter or terminate any waiver of the requirement that an

employee spend time at the qualified business facility implemented by the authority

due to COVID-19 public health emergency and state of emergency. “ Full-time employee ” means a person: a. who is employed by a business for consideration for at least 35 hours a week, or

who renders any other standard of service generally accepted by custom or practice

as full-time employment; or b. who is employed by a professional employer organization pursuant to an employee

leasing agreement between the business and the professional employer organization,

in accordance with P.L.2001, c. 260 ( C.34:8-67 et seq. ) for at least 35 hours a week, or who renders any other standard of service generally

accepted by custom or practice as full-time employment, and whose wages are subject

to withholding as provided in the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. ; or c. who is a resident of another State but whose income is not subject to the “New

Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. or who is a partner of a business who works for the partnership for at least 35 hours

a week, or who renders any other standard of service generally accepted by custom

or practice as full-time employment, and whose distributive share of income, gain,

loss, or deduction, or whose guaranteed payments, or any combination thereof, is subject

to the payment of estimated taxes, as provided in the “New Jersey Gross Income Tax

Act,” N.J.S.54A:1-1 et seq. ; and d. who, except for purposes of the Statewide workforce, is provided, by the business,

with employee health benefits under a health benefits plan authorized pursuant to

State or federal law. For an eligible business that submitted certifications and annual reports required

in an incentive agreement pursuant to subsection e. of section 4 of P.L.2011, c. 149 ( C.34:1B-245 ) on or after January 1, 2020, the requirement that employee health benefits are to

be provided shall be deemed to be satisfied if the benefits are provided by the business

or pursuant to a collective bargaining agreement, no later than 90 days of employee

start date, under a health benefits plan authorized pursuant to State or federal law. With respect to a logistics, manufacturing, energy, defense, aviation, or maritime

business, excluding primarily warehouse or distribution operations, located in a port

district having a container terminal: the requirement that employee health benefits are to be provided shall be deemed to

be satisfied if the benefits are provided in accordance with industry practice by

a third party obligated to provide such benefits pursuant to a collective bargaining

agreement; full-time employment shall include, but not be limited to, employees that have been

hired by way of a labor union hiring hall or its equivalent; 35 hours of employment per week at a qualified business facility shall constitute

one “full-time employee,” regardless of whether or not the hours of work were performed

by one or more persons. For any project located in a Garden State Growth Zone which qualifies under the “Municipal

Rehabilitation and Economic Recovery Act,” P.L.2002, c. 43 ( C.52:27BBB-1 et al.), or any project located in the Atlantic City Tourism District as established

pursuant to section 5 of P.L.2011, c. 18 ( C.5:12-219 ) and regulated by the Casino Reinvestment Development Authority, and which will include

a retail facility of at least 150,000 square feet, of which at least 50 percent will

be occupied by either a full-service supermarket or grocery store, 30 hours of employment

per week at a qualified business facility shall constitute one “full-time employee,”

regardless of whether the hours of work were performed by one or more persons, and

the requirement that employee health benefits are to be provided shall be deemed to

be satisfied if the employees of the business are covered by a collective bargaining

agreement. “Full-time employee” shall not include any person who works as an independent contractor

or on a consulting basis for the business. Full-time employee shall also not include any person who at the time of project application

works in New Jersey for consideration for at least 35 hours per week, or who renders

any other standard of service generally accepted by custom or practice as full-time

employment but who prior to project application was not provided, by the business,

with employee health benefits under a health benefits plan authorized pursuant to

State or federal law. “ Garden State Create Zone ” means the campus of a doctoral university, and the area within a three-mile radius

of the outermost boundary of the campus of a doctoral university, according to a map

appearing in the doctoral university's official catalog or other official publication

on the effective date of P.L.2017, c. 221 . “ Garden State Growth Zone ” or “ growth zone ” means the four New Jersey cities with the lowest median family income based on the

2009 American Community Survey from the US Census, (Table 708. Household, Family, and Per Capita Income and Individuals, and Families Below Poverty

Level by City: 2009); a municipality which contains a Tourism District as established

pursuant to section 5 of P.L.2011, c. 18 ( C.5:12-219 ) and regulated by the Casino Reinvestment Development Authority; or an aviation district. “ Highlands development credit receiving area or redevelopment area ” means an area located within a qualified incentive area and designated by the Highlands

Water Protection and Planning Council for the receipt of Highlands Development Credits

under the Highlands Transfer Development Rights Program authorized pursuant to section

13 of P.L.2004, c. 120 ( C.13:20-13 ). “ Incentive agreement ” means the contract between the business and the authority, which sets forth the

terms and conditions under which the business shall be eligible to receive the incentives

authorized pursuant to the program. “ Incentive effective date ” means the date a business submits the documentation required pursuant to paragraph

(1) of subsection b. of section 6 of P.L.2011, c. 149 ( C.34:1B-247 ) in a form satisfactory to the authority. “ Independent institution of higher education ” means a college or university incorporated and located in New Jersey, which by virtue

of law or character or license is a nonprofit educational institution authorized to

grant academic degrees and which provides a level of education which is equivalent

to the education provided by the State's public institutions of higher education,

as attested by the receipt of and continuation of regional accreditation by the Middle

States Association of Colleges and Schools, and which is eligible to receive State

aid under the provisions of the Constitution of the United States and the Constitution

of the State of New Jersey, but does not include any educational institution dedicated

primarily to the education or training of ministers, priests, rabbis or other professional

persons in the field of religion. “ Major rail station ” means a railroad station located within a qualified incentive area which provides

access to the public to a minimum of six rail passenger service lines operated by

the New Jersey Transit Corporation. “ Mega project ” means: a. a qualified business facility located in a port district housing a business in

the logistics, manufacturing, energy, defense, or maritime industries, either: (1) having a capital investment in excess of $20,000,000, and at which more than 250

full-time employees of the business are created or retained; or (2) at which more than 1,000 full-time employees of the business are created or retained; b. a qualified business facility located in an aviation district housing a business

in the aviation industry, in a Garden State Growth Zone, or in a priority area housing

the United States headquarters and related facilities of an automobile manufacturer,

either: (1) having a capital investment in excess of $20,000,000, and at which more than 250

full-time employees of the business are created or retained, or (2) at which more than 1,000 full-time employees of the business are created or retained; c. a qualified business facility located in an urban transit hub housing a business

of any kind, having a capital investment in excess of $50,000,000, and at which more

than 250 full-time employees of the business are created or retained; d. a project located in an area designated in need of redevelopment, pursuant to P.L.1992, c. 79 ( C.40A:12A-1 et al.) prior to the enactment of P.L.2014, c. 63 ( C.34:1B-251 et al.) within Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean,

or Salem counties having a capital investment in excess of $20,000,000, and at which

more than 150 full-time employees of the business are created or retained; or e. a qualified business facility primarily used by a business principally engaged

in research, development, or manufacture of a drug or device, as defined in R.S.24:1-1 , or primarily used by a business licensed to conduct a clinical laboratory and business

facility pursuant to the “New Jersey Clinical Laboratory Improvement Act,” P.L.1975,

c. 166 ( C.45:9-42.26 et seq. ), either: (1) having a capital investment in excess of $20,000,000, and at which more than 250

full-time employees of the business are created or retained, or (2) at which more than 1,000 full-time employees of the business are created or retained. “ Minimum environmental and sustainability standards ” means standards established by the authority in accordance with the green building

manual prepared by the Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c. 132 ( C.52:27D-130.6 ), regarding the use of renewable energy, energy-efficient technology, and non-renewable

resources in order to reduce environmental degradation and encourage long-term cost

reduction. “ Moderate-income housing ” means housing affordable, according to United States Department of Housing and Urban

Development or other recognized standards for home ownership and rental costs, and

occupied or reserved for occupancy by households with a gross household income equal

to more than 50 percent but less than 80 percent of the median gross household income

for households of the same size within the housing region in which the housing is

located. “ Municipal Revitalization Index ” means the 2007 index by the Office for Planning Advocacy within the Department of

State measuring or ranking municipal distress. “ New full-time job ” means an eligible position created by the business at the qualified business facility

that did not previously exist in this State. For the purposes of determining a number of new full-time jobs, the eligible positions

of an affiliate shall be considered eligible positions of the business. “ Other eligible area ” means the portions of the qualified incentive area that are not located within a

distressed municipality, or the priority area. “ Partnership ” means an entity classified as a partnership for federal income tax purposes. “ Port district ” means the portions of a qualified incentive area that are located within: a. the “Port of New York District” of the Port Authority of New York and New Jersey,

as defined in Article II of the Compact Between the States of New York and New Jersey

of 1921; or b. a 15-mile radius of the outermost boundary of each marine terminal facility established,

acquired, constructed, rehabilitated, or improved by the South Jersey Port District

established pursuant to “The South Jersey Port Corporation Act,” P.L.1968, c. 60 ( C.12:11A-1 et seq. ). “ Priority area ” means the portions of the qualified incentive area that are not located within a

distressed municipality and which: a. are designated pursuant to the “State Planning Act,” P.L.1985, c. 398 ( C.52:18A-196 et seq. ), as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), a designated center

under the State Development and Redevelopment Plan, or a designated growth center

in an endorsed plan until June 30, 2013, or until the State Planning Commission revises

and readopts New Jersey's State Strategic Plan and adopts regulations to revise this

definition; b. intersect with portions of: a deep poverty pocket, a port district, or federally-owned

land approved for closure under a federal Commission on Base Realignment and Closure

action; c. are the proposed site of a disaster recovery project, a qualified incubator facility,

a highlands development credit receiving area or redevelopment area, a tourism destination

project, or transit oriented development; or d. contain: a vacant commercial building having over 400,000 square feet of office,

laboratory, or industrial space available for occupancy for a period of over one year;

or a site that has been negatively impacted by the approval of a “qualified business

facility,” as defined pursuant to section 2 of P.L.2007, c. 346 ( C.34:1B-208 ). “ Professional employer organization ” means an employee leasing company registered with the Department of Labor and Workforce

Development pursuant to P.L.2001, c. 260 ( C.34:8-67 et seq. ). “ Program ” means the “Grow New Jersey Assistance Program” established pursuant to section 3

of P.L.2011, c. 149 ( C.34:1B-244 ). “ Public research university ” means a public research university as defined in section 3 of P.L.1994, c. 48 ( C.18A:3B-3 ). “ Qualified business facility ” means any building, complex of buildings or structural components of buildings,

and all machinery and equipment located within a qualified incentive area, used in

connection with the operation of a business that is not engaged in final point of

sale retail business at that location unless the building, complex of buildings or

structural components of buildings, and all machinery and equipment located within

a qualified incentive area, are used in connection with the operation of: a. a final point of sale retail business located in a Garden State Growth Zone that

will include a retail facility of at least 150,000 square feet, of which at least

50 percent is occupied by either a full-service supermarket or grocery store; or b. a tourism destination project located in the Atlantic City Tourism District as

established pursuant to section 5 of P.L.2011, c. 18 ( C.5:12-219 ). “ Qualified incentive area ” means: a. an aviation district; b. a port district; c. a distressed municipality or urban transit hub municipality; d. an area (1) designated pursuant to the “State Planning Act,” P.L.1985, c. 398 ( C.52:18A-196 et seq. ), as: (a) Planning Area 1 (Metropolitan); (b) Planning Area 2 (Suburban); or (c) Planning Area 3 (Fringe Planning Area); (2) located within a smart growth area and planning area designated in a master plan

adopted by the New Jersey Meadowlands Commission pursuant to subsection (i) of section

6 of P.L.1968, c. 404 ( C.13:17-6 ) or subject to a redevelopment plan adopted by the New Jersey Meadowlands Commission

pursuant to section 20 of P.L.1968, c. 404 ( C.13:17-21 ); (3) located within any land owned by the New Jersey Sports and Exposition Authority,

established pursuant to P.L.1971, c. 137 ( C.5:10-1 et seq. ), within the boundaries of the Hackensack Meadowlands District as delineated in section

4 of P.L.1968, c. 404 ( C.13:17-4 ); (4) located within a regional growth area, rural development area zoned for industrial

use as of the effective date of P.L.2016, c.75, town, village, or a military and federal installation area designated in the comprehensive

management plan prepared and adopted by the Pinelands Commission pursuant to the “Pinelands

Protection Act,” P.L.1979, c. 111 ( C.13:18A-1 et seq. ); (5) located within the planning area of the Highlands Region as defined in section

3 of P.L.2004, c. 120 ( C.13:20-3 ) or a highlands development credit receiving area or redevelopment area; (6) located within a Garden State Growth Zone; (7) located within land approved for closure under any federal Commission on Base

Realignment and Closure action; or (8) located only within the following portions of the areas designated pursuant to

the “State Planning Act,” P.L.1985, c. 398 ( C.52:18A-196 et seq. ), as Planning Area 4A (Rural Planning Area), Planning Area 4B (Rural/Environmentally

Sensitive) or Planning Area 5 (Environmentally Sensitive) if Planning Area 4A (Rural

Planning Area), Planning Area 4B (Rural/Environmentally Sensitive) or Planning Area

5 (Environmentally Sensitive) is located within: (a) a designated center under the State Development and Redevelopment Plan; (b) a designated growth center in an endorsed plan until the State Planning Commission

revises and readopts New Jersey's State Strategic Plan and adopts regulations to revise

this definition as it pertains to Statewide planning areas; (c) any area determined to be in need of redevelopment pursuant to sections 5 and

6 of P.L.1992, c. 79 ( C.40A:12A-5 and C.40A:12A-6 ) or in need of rehabilitation pursuant to section 14 of P.L.1992, c. 79 ( C.40A:12A-14 ); (d) any area on which a structure exists or previously existed including any desired

expansion of the footprint of the existing or previously existing structure provided

the expansion otherwise complies with all applicable federal, State, county, and local

permits and approvals; (e) the planning area of the Highlands Region as defined in section 3 of P.L.2004, c. 120 ( C.13:20-3 ) or a highlands development credit receiving area or redevelopment area; or (f) any area on which an existing tourism destination project is located. “Qualified incentive area” shall not include any property located within the preservation

area of the Highlands Region as defined in section 3 of P.L.2004, c. 120 ( C.13:20-3 ). “ Qualified incubator facility ” means a commercial building located within a qualified incentive area: which contains

50,000 or more square feet of office, laboratory, or industrial space; which is located

near, and presents opportunities for collaboration with, a research institution, teaching

hospital, college, or university; and within which, at least 50 percent of the gross

leasable area is restricted for use by one or more technology startup companies during

the commitment period. “ Retained full-time job ” means an eligible position that currently exists in New Jersey and is filled by

a full-time employee but which, because of a potential relocation by the business,

is at risk of being lost to another state or country, or eliminated. For the purposes of determining a number of retained full-time jobs, the eligible

positions of an affiliate shall be considered eligible positions of the business.

For the purposes of the certifications and annual reports required in the incentive

agreement pursuant to subsection e. of section 4 of P.L.2011, c. 149 ( C.34:1B-245 ), to the extent an eligible position that was the basis of the award no longer exists,

a business shall include as a retained full-time job a new eligible position that

is filled by a full-time employee provided that the position is included in the order

of date of hire and is not the basis for any other incentive award. For a project located in a Garden State Growth Zone which qualified for the “Municipal

Rehabilitation and Economic Recovery Act,” P.L.2002, c. 43 ( C.52:27BBB-1 et al.), retained full-time job shall include any employee previously employed in

New Jersey and transferred to the new location in the Garden State Growth Zone which

qualified for the “Municipal Rehabilitation and Economic Recovery Act,” P.L.2002, c. 43 ( C.52:27BBB-1 et al.). “ SDA district ” means an SDA district as defined in section 3 of P.L.2000, c. 72 ( C.18A:7G-3 ). “ SDA municipality ” means a municipality in which an SDA district is situate. “ State college ” means a State college or university established pursuant to chapter 64 of Title

18A of the New Jersey Statutes. “ Targeted industry ” means any industry identified from time to time by the authority which shall initially

include advanced transportation and logistics, advanced manufacturing, aviation, autonomous

vehicle and zero-emission vehicle research or development, clean energy, life sciences,

hemp processing, information and high technology, finance and insurance, professional

services, film and digital media, non-retail food and beverage businesses including

food innovation, and other innovative industries that disrupt current technologies

or business models. “ Technology startup company ” means a for profit business that has been in operation fewer than five years and

is developing or possesses a proprietary technology or business method of a high-technology

or life science-related product, process, or service which the business intends to

move to commercialization. “ Tourism destination project ” means a qualified non-gaming business facility that will be among the most visited

privately owned or operated tourism or recreation sites in the State, and which is

located within the qualified incentive area and has been determined by the authority

to be in an area appropriate for development and in need of economic development incentive

assistance, including a non-gaming business within an established Tourism District

with a significant impact on the economic viability of that District. “ Transit oriented development ” means a qualified business facility located within a 1/2-mile radius, or one-mile

radius for projects located in a Garden State Growth Zone, surrounding the mid-point

of a New Jersey Transit Corporation, Port Authority Transit Corporation, or Port Authority

Trans-Hudson Corporation rail, bus, or ferry station platform area, including all

light rail stations. “ Urban transit hub ” means an urban transit hub, as defined in section 2 of P.L.2007, c. 346 ( C.34:1B-208 ), that is located within an eligible municipality, as defined in section 2 of P.L.2007, c. 346 ( C.34:1B-208 ) and also located within a qualified incentive area. “ Urban transit hub municipality ” means a municipality: a. which qualifies for State aid pursuant to P.L.1978, c.

14 ( C.52:27D-178 et seq. ), or which has continued to be a qualified municipality thereunder pursuant to P.L.2007, c. 111 ; and b. in which 30 percent or more of the value of real property was exempt from

local property taxation during tax year 2006. The percentage of exempt property shall be calculated by dividing the total exempt

value by the sum of the net valuation which is taxable and that which is tax exempt.