Sponsored by:
Assemblyman RONALD S. DANCER
District 30 (Burlington, Mercer, Monmouth and Ocean)
SYNOPSIS
Permits property tax bills to contain listing of amount of reserve for uncollected taxes required to be maintained by municipality.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the form and content of property tax bills and amending R.S.54:4-65.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. 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. 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] At the discretion of the governing body of the municipality, the information concerning local expenditures may list separately the amount to be used for the support of the municipal government and the amount of the reserve for uncollected taxes required to be maintained by the municipality. The information concerning local expenditures 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. 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.
c. The appropriate tax bill or form mailed with the tax bill shall also contain a statement reporting amounts of State aid and assistance received by the municipality, school districts, special districts and county governments used to offset local tax levies. The director shall provide each tax collector with a certification of the amounts of said State aid and assistance for inclusion in 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.
(cf: P.L.1997, c.99, s.1)
2. This act shall take effect immediately.
STATEMENT
Under current law, property tax bills must contain several pieces of information listed separately, including an amount for “local expenditures.” This bill permits the governing body of a municipality to list separately on the tax bill the amount to be used for the support of the municipal government, and the amount of the reserve for uncollected taxes required to be maintained by the municipality.
Presently, the local expenditure amount not only includes the amount of taxes needed to support the local government budget, but also includes the amount of taxes needed to guarantee 100% payment of tax levies by all other taxing entities, such as the school district and county.
Therefore, the local expenditure amount presently reported is actually higher than needed to support the local government budget. Taxpayers should know the actual amount of their tax dollars needed to support the local government budget, not a reported higher amount of taxes that also includes the reserve for uncollected taxes for all other taxing entities.