Bill Text: NJ A3052 | 2014-2015 | Regular Session | Amended
Bill Title: Concerns property taxes due and owing on real property damaged or destroyed during, or as the result of, a natural disaster when a state of emergency is declared by the Governor. *
Spectrum: Moderate Partisan Bill (Democrat 18-2)
Status: (Passed) 2016-01-11 - Approved P.L.2015, c.203. [A3052 Detail]
Download: New_Jersey-2014-A3052-Amended.html
Sponsored by:
Assemblyman VINCENT MAZZEO
District 2 (Atlantic)
Assemblywoman NANCY J. PINKIN
District 18 (Middlesex)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
Co-Sponsored by:
Assemblymen Andrzejczak, Coughlin, Wisniewski, Lagana, Eustace, Caputo, Gusciora, Garcia, Assemblywoman Vainieri Huttle, Assemblymen DeAngelo and Johnson
SYNOPSIS
Prohibits municipalities from charging interest on unpaid property taxes for a month after payment is due following a significant weather event or natural disaster when a state of emergency is declared by the Governor.
CURRENT VERSION OF TEXT
As reported by the Assembly Homeland Security and State Preparedness Committee on October 27, 2014, with amendments.
An Act concerning interest charged on unpaid property taxes in certain circumstances and amending R.S.54:4-67.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.54:4-67 is amended to read as follows:
54:4-67. a. The governing body of each municipality may by resolution fix the rate of discount to be allowed for the payment of taxes or assessments previous to the date on which they would become delinquent. The rate so fixed shall not exceed 6% per annum, shall be allowed only in case of payment on or before the thirtieth day previous to the date on which the taxes or assessments would become delinquent. No such discount shall apply to the purchaser of a total property tax levy pursuant to section 16 of P.L.1997, c.99 (C.54:5-113.5). The governing body may also fix the rate of interest to be charged for the nonpayment of taxes, assessments, or other municipal liens or charges, unless otherwise provided by law, on or before the date when they would become delinquent, and may provide that no interest shall be charged if payment of any installment is made within the tenth calendar day following the date upon which the same became payable. The rate so fixed shall not exceed 8% per annum on the first $1,500.00 of the delinquency and 18% per annum on any amount in excess of $1,500.00, to be calculated from the date the tax was payable until the date that actual payment to the tax collector is made. Notwithstanding the provisions of this subsection, in the case of real property situate in a municipality that has experienced a significant weather event or natural disaster, and a state of emergency has been declared as a result thereof by the Governor less than 30 days prior to the date upon which a property tax installment payment is payable pursuant to R.S.54:4-66 or section 2 of P.L.1994, c.72 (C.54:4-66.1), as appropriate, interest shall not be charged if payment of the property tax installment is made on or before the first day of the next calendar month from the date upon which it became payable.
b. In any year when the
governing body changes the rate of interest to be charged for delinquent taxes,
assessments or other municipal charges, or to be charged for the end of the
year penalty, the governing body, after adoption of a resolution changing the
rate of interest, shall provide a notice to all taxpayers, prior to the date
taxes are next due or with the tax bill, stating the new rate or rates to be
charged and the date that the new rate or rates take effect. The notice may be
separate from the tax bill. No change in the rate
of interest or the end of year penalty shall take effect until the required
notice has been provided in accordance with this subsection.
c. In municipalities that have sold their property tax levy pursuant to section 16 of P.L.1997, c.99 (C.54:5-113.5), the rate of interest to be charged for the nonpayment of taxes, assessments or other municipal liens or charges shall be the same interest or delinquency rate or rates otherwise charged by the municipality, to be calculated from the date the tax was payable until the date of actual payment to the tax collector. The purchaser of the total property tax levy shall be paid only those amounts attributable to properties included in the total property tax levy purchase and actually collected by the tax collector and which amounts shall not include any delinquent interest collected by the municipal tax collector prior to the time that the total property tax levy purchaser makes the levy payment to the municipality.
1d. Whenever the time period for a property tax installment payment has been extended pursuant to the provisions of subsection a. of this section, the Director of the Division of Local Government Services in the Department of Community Affairs may, by regulation, extend the dates for payment of taxes by a municipality due to a county pursuant to R.S.54:4-74, any school district pursuant to R.S.54:4-75, and any other taxing district as provided by law.1
"Delinquency" means the sum of all taxes and municipal charges due on a given parcel of property covering any number of quarters or years. The property shall remain delinquent, as defined herein, until such time as all unpaid taxes, including subsequent taxes and liens, together with interest thereon shall have been fully paid and satisfied. The delinquency shall remain notwithstanding the issuance of a certificate of sale pursuant to R.S.54:5-32 and R.S.54:5-46, the payment of delinquent tax by the purchaser of the total property tax levy pursuant to section 16 of P.L.1997, c.99 (C.54:5-113.5) and for the purposes of satisfying the requirements for filing any tax appeal with the county board of taxation or the State tax court. The governing body may also fix a penalty to be charged to a taxpayer with a delinquency in excess of $10,000 who fails to pay that delinquency as billed, prior to the end of the fiscal year. If any fiscal year delinquency in excess of $10,000 is paid by the holder of an outstanding tax sale certificate or a total property tax levy purchaser, the holder or purchaser, as appropriate, shall be entitled to receive the amount of the penalty as part of the amount required to redeem such certificate of sale providing the payment is made by the tax lien holder or tax levy purchaser prior to the end of the fiscal year. If the holder of the outstanding tax sale certificate or the levy purchaser, as appropriate, does not make the payment in full prior to the end of the fiscal year, then the holder or purchaser shall be entitled to a pro rata share of the delinquency penalty upon redemption, and the balance of the penalty shall inure to the benefit of the municipality. The penalty so fixed shall not exceed 6% of the amount of the delinquency with respect to each most recent fiscal year only.
(cf: P.L.1997, c.99, s.4)
2. This act shall take effect immediately.
