Bill Text: NJ S2673 | 2018-2019 | Regular Session | Introduced


Bill Title: Permits municipality to pay property tax appeal refund in equal installments over period of three years.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-06-11 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2673 Detail]

Download: New_Jersey-2018-S2673-Introduced.html

SENATE, No. 2673

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED JUNE 11, 2018

 


 

Sponsored by:

Senator  PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

 

 

 

 

SYNOPSIS

     Permits municipality to pay property tax appeal refund in equal installments over period of three years.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning local property tax appeals and amending P.L.1975, c.361 and R.S.54:51A-8.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 2 of P.L.1975, c.361 (C.54:3-27.2) is amended to read as follows:

     2.    Except as required in paragraph (2) of subsection a. of section 2 of P.L.1983, c.137 (C.54:4-134), in the event that a taxpayer is successful in an appeal from an assessment on real property, the respective taxing district shall refund any excess taxes paid, together with interest thereon from the date of payment at a rate of 5% per annum or one percentage point above the prime rate assessed for each month or fraction thereof, compounded annually at the end of each year, from the date the tax was originally due until the date of actual payment, whichever is lesser, less any amount of taxes, interest, or both, which may be applied against delinquencies pursuant to section 2 of P.L.1983, c.137 (C.54:4-134), in substantially equal payment periods and substantially equal payment amounts within [60 days] three years of the date of final judgment.

     "Prime rate" means "prime rate" as that term is defined by R.S.54:48-2.

(cf: P.L.2012, c.19, s.1)

 

     2.    R.S.54:51A-8 is amended to read as follows:

     54:51A-8.  a.  Conclusiveness of judgment; changes in value; effect of revaluation program.  Where a judgment not subject to further appeal has been rendered by the Tax Court involving real property, the judgment shall be conclusive and binding upon the municipal assessor and the taxing district, parties to the proceeding, for the assessment year and for the two assessment years succeeding the assessment year covered by the final judgment, except as to changes in the value of the property occurring after the assessment date.  The conclusive and binding effect of the judgment shall terminate with the tax year immediately preceding the year in which a program for a complete revaluation or complete reassessment of all real property within the district has been put into effect.  If as of October 1 of the pretax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pretax year.

     b.    If the assessor increases the assessment or fails to reflect on the tax duplicate a county board of taxation or Tax Court judgment issued prior to the final preparation of the tax duplicate in either of the two years following the year for which the judgment of the Tax Court was rendered and if said judgment is a final judgment not subject to further appeal, the burden of proof is on the taxing district to establish that the assessor acted reasonably in increasing the assessment.  If the Tax Court finds that the assessor did not act reasonably in increasing the assessment or failed to reflect said judgment on the tax duplicate, the Tax Court shall award to the taxpayer reasonable counsel fees, appraisal costs and other costs which shall be paid by the taxing district.

     c.     In the event that a taxpayer is successful in an appeal from an assessment on real property, the respective taxing district shall refund any excess taxes paid, less any amount of taxes, interest, or both, which may be applied against delinquencies pursuant to section 2 of P.L.1983, c.137 (C.54:4-134), in substantially equal payment periods and substantially equal payment amounts within three years of the date of final judgment.

(cf: P.L.1999, c.208, s.16)

 

     3.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires that, in the event a taxpayer is successful in a real property tax appeal, the taxing district in which the real property is located shall pay to the taxpayer any excess taxes paid, plus interest charged at an annual rate of 5% or one percentage point above the prime rate, within three years of the date of the final judgment, whichever is lesser.  Current law requires full payment of any taxes paid, including interest calculated at an annual rate of 5%, within 60 days of the final judgment.

     This legislation is intended to relieve municipalities of paying property tax appeal refunds within a relatively short period of time.  The sponsor notes that many municipal governments are experiencing fiscal pressures due to increases in costs and revenue constraints.  This bill would allow municipalities to better manage the payment of property tax refunds by budgeting for them over a defined period of time.

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