Bill Text: NJ A1708 | 2010-2011 | Regular Session | Amended
Bill Title: Protects property taxpayers by requiring removal of certain property tax deduction and credit information from documents available for public inspection and provides for homestead property tax benefit in form of credit.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Introduced - Dead) 2010-03-15 - Assembly Floor Amendment Passed (Burzichelli) [A1708 Detail]
Download: New_Jersey-2010-A1708-Amended.html
ASSEMBLY, No. 1708
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman JOHN J. BURZICHELLI
District 3 (Salem, Cumberland and Gloucester)
Assemblyman MATTHEW W. MILAM
District 1 (Cape May, Atlantic and Cumberland)
Assemblyman NELSON T. ALBANO
District 1 (Cape May, Atlantic and Cumberland)
Co-Sponsored by:
Assemblymen Gusciora, Conners, Assemblywoman Riley, Assemblymen Ramos, Conaway, Assemblywomen Rodriguez, Greenstein and Assemblyman Diegnan
SYNOPSIS
Protects property taxpayers by requiring removal of certain property tax deduction and credit information from documents available for public inspection and provides for homestead property tax benefit in form of credit.
CURRENT VERSION OF TEXT
As reported by the Assembly Housing and Local Government Committee on March 4, 2010, with amendments.
An Act concerning the confidentiality of certain property tax information, requiring that the homestead rebate be provided as credit, supplementing chapter 1 of Title 47 of the Revised Statutes, and amending various sections of law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. No person, including any public or private entity, shall print or display, in any manner on any document available for public inspection, any information regarding a property taxpayer's credits and deductions against property taxes due and payable that could be used to determine the taxpayer's income, income range, disability, or age.
b. (1) Whenever a document is presented for public inspection or filing and that document displays information regarding a property taxpayer's credits and deductions against property taxes due and payable that could be used to determine the taxpayer's income range, disability, or age, the public entity shall delete, strike, obliterate, or otherwise expunge that information prior to filing the document or making it available for public inspection.
(2) Notwithstanding the provisions of paragraph (1) of this subsection, a public entity shall provide un-redacted property tax information to any property tax professional seeking information in furtherance of a legitimate business purpose.
(3) As used in this subsection:
"Legitimate business purpose" means any activity or any use of data intended to ascertain the payment status or the pro rata share of property taxes owed by the purchaser, seller, or mortgagor in connection with a sale, purchase, exchange, or transfer of real property or any transaction to modify an existing mortgage loan or obtain a new mortgage loan; or, following the closing of a sale, purchase, exchange, or transfer of real property, or any transaction to modify an existing mortgage loan or obtain a new mortgage loan, any activity or any use of data necessary to facilitate the escrow analysis, escrow disbursement, payment verification and risk mitigation services provided to a property tax professional.
"Mortgage loan" means any loan made to an individual or individuals to whom credit is offered or extended primarily for personal, family or household purposes which is secured by a mortgage constituting a lien upon real property located in this State on which there is erected or to be erected a structure containing one, two, three, four, five, or six dwelling units, a portion of which structure may be used for nonresidential purposes, in the making of which the mortgagee relies primarily upon the value of the mortgaged property.
"Mortgagor" means any person liable for the payment of a mortgage loan, and the owner of real property which secures the payment of a mortgage loan.
"Property tax professional" means a private entity that is:
a mortgagee, as defined by section 1 of P.L.1990, c.69 (C.17:16F-15), including its officers, managers, agents, and employees;
a servicing organization, as defined by section 1 of P.L.1990, c.69 (C.17:16F-15), including its officers, managers, agents, and employees;
a property tax processing organization, as defined by section 1 of P.L.1990, c.69 (C.17:16F-15), including its officers, managers, agents, and employees;
an attorney, licensed to practice law in New Jersey, representing the property owner, the prospective purchaser of the property, or the mortgagee, as defined by section 1 of P.L.1990, c.69 (C.17:16F-15);
a title insurance provider or underwriter, licensed by the State of New Jersey, including its officers, managers, agents, and employees representing the property owner, the prospective purchaser of the property, or the mortgagee, as defined by section 1 of P.L.1990, c.69 (C.17:16F-15); or
a tax search organization, including its officers, managers, agents, and employees, that transfers information to any other property tax professional.
c. (1) Any private entity violating this section shall be subject to a civil penalty of $2,500 for an initial violation, $5,000 for a second violation that occurs within 10 years of an initial violation, and $10,000 for a third violation that occurs within 10 years of an initial violation. This penalty shall be collected and enforced in proceedings in accordance with the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), and the rules of court governing actions for the collection of civil penalties. The Superior Court shall have jurisdiction over proceedings for the enforcement and collection of the penalty imposed by this section.
(2) No public entity shall be liable for any claims arising from an unintentional violation of this section.
2. R.S.54:4-26 is amended to read as follows:
54:4-26. In listing the names of owners and properties the assessor shall follow such forms and methods as may be prescribed by the Director of the Division of Taxation including, without limitation of the foregoing, a listing of the use of each parcel assessed, the taxable value of the land and of the buildings and improvements separately on each parcel, and the sum of such separate values as the assessed value of the parcel, and in such case the tax bill shall contain the separate valuations of land and of buildings and improvements.
In addition to the foregoing, the director may by rule require the assessor to certify land and improvements in his tax list according to such characteristics thereof as the director may prescribe and he may require the assessor to append to his tax list a statement showing the total valuation of each category of such property in the taxing district.
In order to protect a taxpayer's confidentiality, the director shall establish guidelines to ensure that no information concerning deductions and credits against property taxes due and payable allowed to the property taxpayer shall appear on any tax list or extended tax duplicate available for public inspection.
(cf: P.L.1960, c.51, s.27)
3. R.S.54:4-35 is amended to read as follows:
54:4-35. The assessor shall determine his taxable valuations of real property as of October 1 in each year and shall complete the preparation of his assessment list by January 10 following, on which date he shall attend before the county board of taxation and file with the board his complete assessment list, and a true copy thereof, to be called the assessor's duplicate. Such list and duplicate shall include the assessments of personal property reported or determined pursuant to this chapter. They shall be properly made up in such manner and form required by the Director of the Division of Taxation pursuant to section 54:4-26 of this chapter, to be examined, revised and corrected by the board as provided by law. No extended tax duplicate made available to the public for inspection shall contain any information concerning a property taxpayer's deductions and credits against property taxes due and payable that would enable the taxpayer's income, income range, disability status, or age to be determined.
(cf: P.L.1966, c.138, s.9)
4. Section 2 of P.L.1963, c.173 (C.54:4-36.1) is amended to read as follows:
2. Each assessor shall prepare, certify and file with his assessment list and duplicates a statement of the estimated total amount of approved tax deductions including the tax deductions allowable against taxes on household personal property and for the purposes of such estimate he shall calculate each approved deduction at the maximum allowed by law. Nothing on the assessor's statement shall identify the individual deductions and credits against property taxes due and payable allowed to any particular property taxpayer.
(cf: P.L.1963, c.173, s.2)
5. Section 32 of P.L.1991, c.75 (C.54:4-38.1) is amended to read as follows:
32. Every assessor, prior to February 1, shall notify by mail each taxpayer of the current assessment and preceding year's taxes. Thereafter, the assessor or county board of taxation shall notify each taxpayer by mail within 30 days of any change to the assessment. This notification of change of assessment shall contain the prior assessment and the current assessment. The director shall establish the form of notice of assessment and change of assessment. The notice of assessment shall not identify the amount paid in any year against property taxes due and payable, nor shall it identify the individual deductions and credits against property taxes due and payable allowed to any particular property taxpayer. Any notice issued by the assessor or county board of taxation shall contain information instructing taxpayers on how to appeal their assessment.
(cf: P.L.1991, c.75, s.32)
6. R.S.54:4-55 is amended to read as follows:
54:4-55. The county board of taxation shall, on or before June 3 in each year, cause the corrected, revised and completed duplicates, certified by it to be a true record of the taxes assessed, to be delivered to the collectors of the various taxing districts in the county, and the tax lists shall remain in the office of the board as a public record, except that information concerning deductions and credits against property taxes due and payable allowed to a property taxpayer shall be deleted, struck, obliterated, or otherwise expunged prior to making the tax lists available for public inspection. Thereafter neither the assessor nor the collector shall make or cause to be made any change or alteration in the tax duplicate except as may be provided by law.
(cf: P.L.1995, c.94, s.5)
7. Section 2 of P.L.1955, c.87 (C.54:4-55.1) is amended to read as follows:
2. At any time after the tax lists and duplicates shall have been delivered to the county board of taxation as provided in R.S.54:4-35, the county board of taxation may, for such time and upon such terms and conditions as it deems proper, permit the collectors of the various taxing districts in the county to have custody of the duplicates. No collector shall make any change or alteration in assessments in the duplicate while it is in his possession, except that information concerning deductions and credits against property taxes due and payable allowed to any property taxpayer shall be deleted, struck, obliterated, or otherwise expunged prior to making the duplicate available for public inspection. Every collector who shall fail to return the duplicates to the county board of taxation in accordance with the terms and conditions of its delivery or upon its demand shall be subject to a penalty of $10.00, and to an additional penalty of $10.00 for each additional day such failure shall continue. The penalties shall be collected by civil action against the collector at the instance of the county board of taxation, in any court of competent jurisdiction and the amount of the penalties when collected shall be paid into the county treasury.
(cf: P.L.1955, c.87, s.2)
8. R.S.54:4-65 is amended to read as follows:
54:4-65. a. The Director of the Division of Local Government Services in the Department of Community Affairs shall approve the form and content of property tax bills.
b. (1) Each tax bill shall have printed thereon a brief tabulation showing the distribution of the amount raised by taxation in the taxing district, in such form as to disclose the rate per $100.00 of assessed valuation or the number of cents in each dollar paid by the taxpayer which is to be used for the payment of State school taxes, other State taxes, county taxes, local school expenditures and other local expenditures. The last named item may be further subdivided so as to show the amount for each of the several departments of the municipal government. In lieu of printing such information on the tax bill, any municipality may furnish the tabulation required hereunder and any other pertinent information in a statement accompanying the mailing or delivery of the tax bill.
(2) When a parcel receives a homestead property tax credit pursuant to the provisions of P.L.2007, c.62 (C.18A:7F-37 et al.), the amount of the credit shall be included with the tax calculation as a reduction in the total tax calculation for the year. One-half of the amount of the credit shall be deducted from taxes otherwise due for the third installment and the remaining one-half shall be deducted from taxes otherwise due for the fourth installment.
(3) There shall be included on or with the tax bill the delinquent interest rate or rates to be charged and any end of year penalty that is authorized and any other such information that the director may require from time to time.
c. The tax bill shall also include a calculation stating the amounts of State aid and assistance received by the municipality, school districts, special districts and county governments that offset property taxes that are otherwise due on each parcel. The director shall certify to each tax collector the amounts of said State aid and assistance that shall serve as the basis for the calculation for each parcel. The director shall set standards for the calculation and display of the statement on the tax bill.
d. The tax bill or form mailed with the tax bill shall include thereon the date upon which each installment is due.
e. If a property tax bill includes in its calculation a homestead property tax credit, the bill shall, in addition to the calculation showing taxes due, either display a notice concerning the credit on the face of the property tax bill or with a separate notice, with the content and wording as the director provides.
f. Property tax bills prepared and mailed pursuant to this section are not public or government records under P.L.1963, c.73 (C.47:1A-1 et seq.) and P.L.2001, c.404 (C.47:1A-5 et al.).
(cf: P.L.2007, c.62, s.34)
9. Section 7 of P.L.1990, c.61 (C.54:4-8.63) is amended to read as follows:
7. a. The State Treasurer annually on or before October 31, upon certification of the director and upon warrant of the Director of the Division of Budget and Accounting, shall pay and distribute the amount of a homestead rebate payable under this act that is claimed for the prior tax year to each claimant whose rebate is approved by the director.
b. A homestead credit allowed by the Director of the Division of Taxation to a claimant who claimed a homestead credit pursuant to section 3 of P.L.1990, c.61 (C.54:4-8.59), and whose homestead is not a unit in a cooperative, mutual housing corporation or continuing care retirement community, shall be paid by the State Treasurer, through electronic funds transfer made by the director to the local property tax account maintained by the local tax collector for the homestead of the claimant as the claimant shall identify, in equal installments after the application for the credit has been approved, at the dates and in the manner as the director shall determine to best coincide with the next local property tax quarterly due dates of August 1 and November 1. Notice of payments of credit installments shall be provided to the claimant and the appropriate local tax collector.
c. Notwithstanding subsection b. of this section, the director shall provide a homestead benefit under this act as a credit only if the director can ensure that the benefit will be applied to the appropriate taxpayer. Otherwise, the director may remit a homestead benefit to an eligible taxpayer as a rebate.
d. Notwithstanding subsection b. of this section, a resident homeowner of this State who is 65 years of age or older at the close of the tax year or who is allowed to claim a personal deduction as a blind or disabled taxpayer pursuant to subsection (b) of N.J.S.54A:3-1, shall receive the credit in the form of a rebate payment in calendar year 2007, but will receive credits in future years starting in calendar year [2008] 2012, unless the claimant elects in the claimant's homestead credit application to receive a rebate.
e. Notwithstanding subsection b. of this section, if the director determines that homestead benefits for a particular tax year, prior to State fiscal year 2012, cannot be administered and delivered as credits efficiently, the director may remit homestead benefits for that year as rebates. Beginning on July 1, 2012, the State Treasurer shall make credit payments directly to the local tax collectors as provided for in subsection b. of this section, however, if the eligible taxpayer is 65 years of age or older at the close of the tax year, the taxpayer may elect to receive the credit as a reimbursement.
(cf: P.L.2007, c.62, s.25)
10. Section 3 of P.L.1997, c.348 (C.54:4-8.70) is amended to read as follows:
3. a. An application for a homestead property tax reimbursement hereunder shall be filed with the director annually on or before June 1 of the year following the year for which the claim is being made and shall reflect the prerequisites for a homestead property tax reimbursement on December 31 of the tax year for which the claim is being made; provided, however, that the director may, by rule, designate a later date as the date by which the application shall be filed or waive the requirement for filing an annual application for any year or years subject to any limitations and conditions the director may deem appropriate. The application shall be on a form prescribed by the director and provided for the use of applicants hereunder. Each applicant making a claim for a homestead property tax reimbursement under this act shall provide, if required by the director, to the director a copy of his or her current year property tax bill or current year site fee bill on the homestead constituting that person's principal residence and a copy of his or her property tax bill for the base year or site fee bill for the base year on the same homestead, or other equivalent proof as permitted by the director.
It shall be the duty of every eligible claimant to inform the director of any change in his or her status or homestead which may affect his or her right to continuance of the homestead property tax reimbursement. Beginning on January 1, 2012, an eligible claimant seeking a homestead property tax reimbursement for the prior tax year may elect to receive the reimbursement as a credit against the property taxes due and owing for the current tax year.
If an eligible claimant receives an additional homestead property tax reimbursement to which the claimant was not entitled or greater than the reimbursement to which the claimant was entitled, the director may, in addition to all other available legal remedies, offset such amount against a gross income tax refund or amount due pursuant to P.L.1990, c.61.
b. Beginning on January 1, 2012 an eligible claimant seeking a homestead property tax reimbursement for the prior tax year shall file the application, required by subsection a. of this section, no later than April 1 of the year following the year for which the claim is being made.
(cf: P.L.2003, c.30, s.1)
11. Section 4 of P.L.1997, c.348 (C.54:4-8.71) is amended to read as follows:
4. a. The director shall administer the homestead property tax reimbursement program. A payment for the homestead property tax reimbursement amount, as calculated by the director, shall be mailed to each person determined by the director to be an eligible claimant under this act on or before July 15, 1999 and July 15 annually thereafter, except that the payment of any homestead property tax reimbursement amount for an eligible claimant whose application is filed during the period May 1 through June 1 shall be mailed on or before September 1 annually. Provided further, however, that the payment of any homestead property tax reimbursement amount for an eligible claimant whose application is filed during a period after June 1 pursuant to an extended application deadline as may be designated by the director shall be mailed on or before such latter mailing date as the director may determine. All payments made pursuant to this section shall be appropriated from receipts in the Casino Revenue Fund.
b. Beginning on January 1, 2012, and in each year thereafter, the director shall provide the municipal tax collector with a list of the taxpayers, excluding any eligible taxpayer over the age of 65 who elects to receive the credit as a reimbursement, located within the municipality who are eligible to receive a homestead property tax reimbursement for the prior tax year for which a claim is being made, including the amount of the reimbursement. The municipal tax collector will reflect the amount of the reimbursement as a credit against taxes due and payable in the current tax year by the eligible claimant.
c. The State Treasurer shall make payments to the municipality, equal to the total amount of the credits provided to eligible residents of the municipality, no later than July 15 of each year.
(cf: P.L.2003, c.30, s.2)
12. Section 8 of P.L.1990, c.61 (C.54:4-8.64) is amended to read as follows:
8. a. The tax collector of each municipality shall, on or before April 1 of each year, furnish the director with a list of property taxpayers in the district delinquent for taxes due and payable for the year immediately preceding and the amounts of such delinquencies. The collector shall report on such list the name, lot and block number on the property tax duplicate as may be applicable, and the address of each owner to whom a delinquency is attributable together with the amount of such delinquency so identified. No homestead rebate payment under this act shall be made to a property owner, and no homestead credit shall be applied as provided in subsection b. of section 7 of P.L.1990, c.61 (C.54:4-8.63), while that property owner's delinquency remains; provided however that for the purposes of this act, for an assessment on a property which is on appeal and for which the statutory percentage of the tax as provided in R.S.54:3-27 has been paid, the taxes assessed on that property shall not be regarded as delinquent.
b. If the director receives the list as provided for in subsection a. of this section, and the director determines that a property tax delinquency remains for the preceding tax year on April 1, the director shall ascertain the amount of the homestead rebate or credit required to be withheld because of such delinquency in each municipality in the State, and shall certify such amounts to the State Treasurer as soon thereafter as may be practicable.
c. On or before November 15, the director shall notify each homestead rebate or credit claimant whose rebate or credit has been withheld because of delinquency that the amount of the rebate or credit to which the claimant otherwise would have been entitled has been sent to the tax collector in the municipality to be credited against the claimant's delinquency.
d. Upon certification by the director as to the amount of homestead rebates or credits required to be withheld because of delinquency in the several municipalities, the State Treasurer upon the warrant of the Director of the Division of Budget and Accounting, shall pay such amount on or before October 30 to the tax collector in each municipality.
e. The tax collector in each municipality shall credit the tax delinquency of each property taxpayer who appears on the delinquency list set forth in subsection a. of this section in the amount that otherwise would have been returned to the property taxpayer as a homestead rebate or credit. In the event that the amount so credited by the tax collector exceeds the amount of delinquency, the tax collector may return the difference to the taxpayer or credit such amount to the subsequent property tax bill.
f. In the case of delinquency in the payment of property taxes by a cooperative, mutual housing corporation or continuing care retirement community, a homestead rebate that may be due an individual resident shall be paid by the State Treasurer to the tax collector of the municipality. The tax collector shall credit the cooperative, mutual housing corporation or continuing care retirement community with such payment and the cooperative, mutual housing corporation or continuing care retirement community shall, in turn, credit the individual unit owner to the extent of the rebate and notify the applicant of the amount to be credited.
g. If a tax collector fails to comply with the provisions of subsection a. of this section requiring the tax collector to furnish the director with a list, on or before April 1 of each year, of property taxpayers in the district delinquent for taxes due and payable for the year immediately preceding and the amounts of such delinquencies, the director shall either pay the homestead rebate directly to the delinquent applicant rather than to the tax collector of the municipality as set forth in subsection d. of this section or provide a credit for the applicant under this act.
h. All provisions of this section shall apply to NJ SAVER rebate applications filed for and paid as homestead rebates for tax year 2003.
i. In the event a taxpayer receives a homestead credit on a property tax bill issued in tax year 2013, or thereafter, and fails to pay the taxes owned on the property, the total amount of the credit shall be included in any tax lien placed on the property. The total amount of the credit, plus any interest accrued on the amount of the credit, shall be reimbursed to the State by the municipal tax collector upon satisfaction or sale of the tax lien.
(cf: P.L.2007, c.62, s.26)
13. This act shall take effect 1[immediately] January 1, 20121.
