Bill Text: NJ S2734 | 2020-2021 | Regular Session | Amended
Bill Title: Permits DCA to modify required amount for reserve for uncollected taxes in response to COVID-19 pandemic.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2020-11-16 - Received in the Assembly, Referred to Assembly State and Local Government Committee [S2734 Detail]
Download: New_Jersey-2020-S2734-Amended.html
Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
Permits DCA to modify required amount for reserve for uncollected taxes in response to COVID-19 pandemic.
CURRENT VERSION OF TEXT
As amended by the Senate on October 29, 2020.
An Act concerning the calculation of the reserve for uncollected taxes in municipal budgets 1in response to COVID-19 pandemic and amending N.J.S.40A:4-411.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1[1. a. For the purpose of determining the amount of the appropriation for "reserve for uncollected taxes" required to be included in each annual budget where less than 100 percent of current tax collections may be and are anticipated, anticipated cash receipts shall be as set forth in the budget of the current year, and in accordance with the limitations of statute for anticipated revenue from, surplus appropriated, miscellaneous revenues and receipts from delinquent taxes.
b. Receipts from the collection of taxes levied or to be levied in the municipality, or in the case of a county for general county purposes and payable in the fiscal year shall be anticipated:
(1) In an amount which is not in excess of the percentage of taxes levied and payable during the next preceding fiscal year which was received in cash by the last day of the preceding fiscal year; or
(2) In an amount which is not in excess of the percentage of taxes levied and payable during the fiscal year preceding the fiscal year coinciding with any day between March 9, 2020 and June 30, 2020.
c. For any municipality in which tax appeal judgments have been awarded to property owners from action of the county tax board pursuant to R.S.54:3-21 et seq., or the State tax court pursuant to R.S.54:48-1 et seq. in the preceding fiscal year, the governing body of the municipality may elect to determine the reserve for uncollected taxes by using the average of the percentages of taxes levied which were received in cash by the last day of each of the three preceding fiscal years or the three preceding fiscal years prior to the fiscal year coinciding with any day between March 9, 2020 and June 30, 2020. Election of this choice shall be made by resolution, approved by a majority vote of the full membership of the governing body prior to the introduction of the annual budget pursuant to N.J.S.40A:4-5.
d. The director may promulgate rules and
regulations to permit a three-year average or a three-year average prior to the
fiscal year coinciding with any day between March 9, 2020 and June 30, 2020 to
be used to determine the amount required for the reserve for uncollected taxes
for municipalities to which subsection c. of this section is not applicable.]1
11. N.J.S.40A:4-41 is amended to read as follows:
40A:4-41. a. For the purpose of determining the amount of the appropriation for "reserve for uncollected taxes" required to be included in each annual budget where less than 100% of current tax collections may be and are anticipated, anticipated cash receipts shall be as set forth in the budget of the current year, and in accordance with the limitations of statute for anticipated revenue from, surplus appropriated, miscellaneous revenues and receipts from delinquent taxes.
b. Receipts from the collection of taxes levied or to be levied in the municipality, or in the case of a county for general county purposes and payable in the fiscal year shall be anticipated in an amount which is not in excess of the percentage of taxes levied and payable during the next preceding fiscal year which was received in cash by the last day of the preceding fiscal year.
c. (1) For any municipality in which tax appeal judgments have been awarded to property owners from action of the county tax board pursuant to R.S.54:3-21 et seq., or the State tax court pursuant to R.S.54:48-1 et seq. in the preceding fiscal year, the governing body of the municipality may elect to determine the reserve for uncollected taxes by using the average of the percentages of taxes levied which were received in cash by the last day of each of the three preceding fiscal years. Election of this choice shall be made by resolution, approved by a majority vote of the full membership of the governing body prior to the introduction of the annual budget pursuant to N.J.S.40A:4-5.
(2) If tax appeal judgments of the county tax board pursuant to R.S.54:3-21 et seq., or the State tax court pursuant to R.S.54:48-1 et seq., result in tax reductions for the previous fiscal year, the governing body of the municipality may elect to calculate the current year reserve for uncollected taxes by reducing the certified tax levy of the prior year by the amount of the tax levy adjustments resulting from those judgments. Election of this choice shall be made by resolution, approved by a majority vote of the full membership of the governing body prior to the introduction of the annual budget pursuant to N.J.S.40A:4-5.
d. The director may promulgate rules and regulations to permit a three-year average to be used to determine the amount required for the reserve for uncollected taxes for municipalities to which subsection c. of this section is not applicable.
e. (1) Notwithstanding the provisions of subsections a. and b. to the contrary, when a public health emergency pursuant to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.), or both, has been declared by the Governor in response to the COVID-19 pandemic, the Director of the Division of Local Government Services in the Department of Community Affairs may promulgate general guidance modifying the standard for determining the amount of the appropriation for the reserve for uncollected taxes required to be included in each annual budget. This subsection shall only apply to the 2021 and 2022 annual budgets of municipalities on a calendar year budget cycle and shall only apply to the 2022 and 2023 annual budgets of municipalities on a State fiscal year budget cycle.
(2) For the purposes of this subsection, "COVID-19 pandemic" means the outbreak of COVID-19 throughout the world, recognized as a pandemic by the World Health Organization on March 11, 2020.1
(cf: P.L.2010, c.56, s.1)
2. This act shall take effect immediately 1[and shall expire on January 1, 2023]1.
