A862

An Act concerning real property assessment appeals and amending P.L.1975, c.361 and P.L.1983, c.137.

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, 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), within 60 days of the date of final judgment; except that a municipality may refund the amount owed to the taxpayer as a credit against the balance of property taxes that become due and payable on the parcel of real property immediately following the county board of taxation’s decision, or the Tax Court judgment, as appropriate.

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

2. Section 2 of P.L.1983, c.137 (C.54:4-134) is amended to read as follows:

2. a. (1) Whenever the owner of real property shall be entitled, pursuant to a determination of a county board of taxation or a judgment of the tax court, to a refund of all or any portion of the property taxes paid against the property in any given year, and any property taxes, water or sewer payments, or parking or payroll taxes imposed or to be collected by the municipality against that property or the owner or owners of that property are delinquent at the time of the determination or judgment, the governing body of the municipality constituting the taxing district in which the property is located may apply the refund, or such portion thereof as may be necessary, including any accrued interest, against the delinquency.

(2) In addition to the application of a refund against a delinquency as set forth in paragraph (1) of this subsection, a refund from an appeal on the assessment of a property that was a constituent part of an industrial site or complex that is currently vacant or underutilized, and that is subject to any federal or State court order, or administrative action or order, for environmental remediation, shall be deposited by the taxing district with the Commissioner of Environmental Protection, to be used to ensure required site remediation. Once the industrial site has been remediated, any remaining refund amounts shall be returned by the commissioner to the taxpayer within 30 days after completion of the site remediation. Any monies not returned within 30 days shall be paid, with interest, from the date of completion of the site remediation, at a rate of 5% per annum. The provisions of this paragraph shall not apply to any property for which a remediation trust fund has been established pursuant to the provisions of section 25 of P.L.1993, c.139 (C.58:10B-3).

b. If the total amount of the refund is equal to or exceeds the total amount of the delinquency, the lien against the property for unpaid taxes shall be extinguished, and the balance, if any, remaining after the application of the refund against the delinquency shall be forwarded to the owner not later than 60 days after the date of the determination of the county board of taxation or the tax court judgment, as the case may be; except that a municipality may refund the amount owed to the taxpayer as a credit against the balance of property taxes that become due and payable on the parcel of real property immediately following the county board of taxation’s decision, or the Tax Court judgment, as appropriate. If the total amount of the delinquency exceeds the total amount of the refund, the balance of the delinquency remaining shall remain a lien against the property.

(cf: P.L.2012, c.19, s.2)

3. This act shall take effect immediately.

STATEMENT

This bill would permit municipalities to refund excess property taxes paid by a taxpayer who wins an assessment appeal as a property tax credit against property taxes due and payable on the parcel of real property immediately following the county board of taxation’s decision, or the Tax Court judgment, as appropriate.

This bill is intended to relieve municipalities from the pressure of paying property tax appeal refunds not later than 60 days after the date of determination of the county board of taxation or the tax court judgment, as the case may be, which is a relatively short period of time. Many municipal governments experience 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 providing refunds as a credit against property taxes due and payable in the current tax year, or succeeding tax years.