Bill Text: NJ AJR83 | 2012-2013 | Regular Session | Introduced
Bill Title: Establishes "Municipal Tax Appeals Task Force."
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-10-18 - Introduced, Referred to Assembly Housing and Local Government Committee [AJR83 Detail]
Download: New_Jersey-2012-AJR83-Introduced.html
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Establishes "Municipal Tax Appeals Task Force."
CURRENT VERSION OF TEXT
As introduced.
A Joint Resolution establishing a task force to study the recent surge in property tax appeals.
Whereas, Within the last several years, the number of property tax appeals has increased dramatically, reaching near record levels in 2011, when more than 87,000 homeowners and businesses filed tax appeals, nearly four times the number filed in 2007; and
Whereas, Most of the tax appeals filed in 2011 have been successful or settled, resulting in reduced property assessments, which have lowered the property tax burdens of the appellants and thereby reduced the aggregate municipal tax base by nearly four billion dollars for the tax year; and
Whereas, Absorbing this tremendous cost, through reduced tax bills or tax refunds, has forced many municipalities to deplete surplus funds or to borrow funds through tax appeal refunding bonds in order to avoid year-end cash deficits; and
Whereas, The issuance of refunding bonds in order to weather the budget shortfalls created by the surge in tax appeals will add future interest costs that property taxpayers must eventually bear; and
Whereas, The recent surge in tax appeals is substantially straining the finances of many municipalities, which will be burdened by the negative impacts of these tax appeals for years to come; and
Whereas, The Legislature has recently passed and is also considering legislation establishing tax assessment and appeals pilot programs in certain counties that should be closely studied to determine if one or the other should be implemented Statewide; and
Whereas, It is altogether fitting and proper, and in the public interest, for the Legislature to establish a task force to study the fiscal problems municipalities are facing as a result of the recent surge in tax appeals and to develop recommendations on how to minimize or avoid these negative impacts going forward; now, therefore,
Be It Resolved by the Senate and General Assembly of the State of New Jersey:
1. There is established the "Municipal Tax Appeals Task Force." The task force shall consist of nine members as follows: a member of the Senate designated by the President of the Senate; a member of the Senate designated by the Minority Leader of the Senate; a member of the General Assembly designated by the Speaker of the Assembly; a member of the General Assembly designated by the Minority Leader of the General Assembly; a designee of the Director of the Division of Taxation in the Department of the Treasury; a designee of the Director of the Division of Local Government Services in the Department of Community Affairs; a representative, to be appointed by the Governor, of the New Jersey State League of Municipalities; a representative, to be appointed by the Governor, of the Tax Collectors and Treasurers Association of New Jersey; and a representative, to be appointed by the Governor, of the Association of Municipal Assessors of New Jersey. Vacancies in the membership of the task force shall be filled in the same manner as the original appointments.
2. The task force shall organize as soon as practicable after the appointment of a majority of its members. The members of the task force shall elect one member to serve as chair. All members of the task force shall serve without compensation.
3. The duty of the task force shall be to study the recent surge in tax appeals and to make recommendations on how to minimize or avoid the resulting deleterious impacts on municipal finances going forward. To this end, the task force shall examine and evaluate how property taxes are currently assessed and appealed, and identify any areas that could be improved to help protect municipalities from these negative fiscal impacts. The recommendations of the task force shall include any appropriate legislative changes.
4. The task force may meet and hold hearings in furtherance of its general purpose at any place as it shall designate, during the sessions or recesses of the Legislature.
5. The task force shall be entitled to call to its assistance and avail itself of the services of employees of any State, county, or municipal department, board, bureau, commission, agency, or other entity, as it may require and as may available to it for its purposes. The task force shall also be entitled to employ such technical, stenographic, and secretarial assistance as it may require, within the limits of funds made available to the task force for its purposes.
6. The task force shall submit a report with its findings and recommendations to the Governor and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), no later than the first day of the seventh month after the date of its first organizational meeting. The task force shall expire upon the submission of its report to the Governor and the Legislature.
7. This joint resolution shall take effect immediately.
STATEMENT
This bill would establish the "Municipal Tax Appeals Task Force" to review the recent surge in tax appeals and to develop recommendations as to how the resulting negative impacts on municipal finances may be minimized or avoided going forward. The dramatic rise in tax appeals has substantially strained municipal budgets, forcing many municipalities to deplete surplus funds or issue refunding bonds in order to avoid year-end cash deficits. The problems created by the recent surge in tax appeals warrant careful examination that also explores potential solutions.
The task force would consist of nine members as follows: a member of the Senate designated by the President of the Senate; a member of the Senate designated by the Senate Minority Leader; a member of the General Assembly designated by the Speaker of the Assembly; a member of the General Assembly designated by the Assembly Minority Leader; a designee of the Director of the Division of Taxation in the Department of the Treasury ; a designee of the Director of the Division of Local Government Services in the Department of Community Affairs; and a representative, to be appointed by the Governor, each from the New Jersey State League of Municipalities, the Tax Collectors and Treasurers Association of New Jersey, and the Association of Municipal Assessors of New Jersey. The members of the task force would serve without compensation.
The overall goal of the task force would be to study the negative impacts created by the recent surge in tax appeals and to develop recommendations on how to improve the current tax assessment and appeals system in order to protect municipal finances from these negative impacts going forward.
The task force would be required to submit a report with its findings and recommendations to the Governor and the Legislature no later than the first day of the seventh month after the date of its first organizational meeting. The task force would expire upon the submission of its report to the Governor and the Legislature.
