N.J. Admin. Code § 5:11-3.9

Current through Register Vol. 56, No. 11, June 3, 2024

Section 5:11-3.9 - Moving expenses; business

(a) A relocation payment for moving expenses of a business shall be limited to the following items, as applicable:

1. The actual reasonable and necessary cost of moving the tangible personal property for a maximum distance of 50 miles, unless the distance is enlarged by the displacing agency, for cause.

2. The actual reasonable and necessary cost incurred for inspection and license fees required by statute or local ordinance to permit the operation of the business at the new location.

3. The actual reasonable and necessary cost of reconnecting utility service to machinery and equipment, including, without limitation, the cost incurred in adapting or converting relocated machinery or equipment to use a different type of power supply, to the extent that these services were required in the former location. Expenses incurred in providing utility service from the right-of-way to the building or improvements are excluded.

4. The actual reasonable and necessary cost incurred for any physical changes in or to an existing building to which a business relocates in order to accommodate the machinery and equipment relocated. Physical changes beyond those necessary to accommodate the machinery and equipment and which enhance the property's value are excluded, as are changes necessary to meet code requirements except when necessary to install specific equipment moved from the former location. The amount incurred shall not exceed the fair market value of the machinery and equipment requiring the physical change. In the event the cost does exceed the fair market value of the machinery and equipment, the displacing agency shall then be responsible to pay only the fair market value.

5. The owner of a displaced business may elect to replace with a comparable item any item of personal property, including, without limitation, outdoor advertising displays or signs, utilized in its operation which is not to be moved. In such a case, the amount of the moving expense payment shall be the lesser of:

i. The actual cost of the substitute equipment delivered and installed at the new location less any proceeds from the disposition of the old equipment or, if a bona fide sale cannot be made, less the market value of the old equipment as determined by an independent appraisal; and

ii. The estimated cost of relocating the old equipment, as determined by the displacing agency.

(b) The business move may be accomplished by either of two methods, as described in this subsection:

1. The displaced business may use licensed moving companies or contractors as required and, if it does provide the displacing agency with moving cost estimates from three licensed moving companies or contractors. The displacing agency shall choose one of the three estimates and authorize payment up to that amount. In the event the displacing agency does not accept any of the three estimates provided, it may obtain one estimate and choose one of the four estimates and authorize payment up to that amount. The business may then use any mover it so chooses and be responsible for any additional cost.

2. The displaced business may choose to move itself upon prior notice to the displacing agency and shall submit the three moving estimates as in (b)1 above. The amount of the moving cost payment shall be the lesser of the bid chosen or the estimate obtained by the displacing agency.

N.J. Admin. Code § 5:11-3.9

As amended, R.1984 d.127, eff. 4/16/1984.
See: 16 N.J.R. 175(a), 16 N.J.R. 870(b).
Recodified from N.J.A.C. 5:11-3.7.
Section substantially amended.
Amended by R.1989 d.188, effective 4/3/1989.
See: 21 N.J.R. 231(b), 21 N.J.R. 891(a).
In (a)3 exclusions added re: utility service and improvements.
In (a)4 exclusions added re: those changes beyond what is necessary to accommodate equipment.
Administrative correction.
See: 36 N.J.R. 4298(a).