A1121

ASSEMBLY, No. 1121

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman MURPHY

An Act concerning certain property assessment valuation appeals, and the sharing of costs for uncollected taxes and property tax refunds by local units, and amending various sections of statutory law and supplementing chapter 4 of Title 40A of the New Jersey Statutes.

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

1. R.S.54:3-21 is amended to read as follows:

54:3-21. A taxpayer feeling aggrieved by the assessed valuation of his property, or feeling that he is discriminated against by the assessed valuation of other property in the county, or a taxing district which may feel discriminated against by the assessed valuation of property in the taxing district, or by the assessed valuation of property in another taxing district in the county, may on or before April 1 appeal to the county board of taxation by filing with it a petition of appeal; provided, however, that any such taxpayer or taxing district may on or before April 1 file a complaint directly with the tax court, if the assessed valuation of the property subject to the appeal exceeds $750,000.00. A taxpayer shall have 45 days to file an appeal upon the issuance of a notification of a change in assessment. All appeals to the tax court hereunder shall be in accordance with the provisions of the State Tax Uniform Procedure Law, R.S.54:48-1 et seq.

If a petition of appeal or a complaint is filed during the 19 days next preceding April 1, a taxpayer or a taxing district shall have 20 days from the date of service of the petition or complaint to file a cross-petition of appeal with a county board of taxation or a counterclaim with the clerk of the tax court, as appropriate.

A taxpayer appealing the assessed valuation of a property for which the assessed valuation exceeds $750,000 shall be required to file, on or before March 1, a notice of appeal along with a professional appraisal of that property performed by a real estate appraiser who has attained licensure or certification by the State Real Estate Appraiser Board in the Division of Consumer Affairs in the Department of Law and Public Safety pursuant to the "Real Estate Appraisers Act," P.L.1991, c.68 (C.45:14F-1 et seq.). If the notice of appeal or the professional appraisal is not submitted by March 1, then the appeal shall not be considered timely filed.

(cf: P.L.1991, c.75, s.28)

2. (New section) a. The total of the amount of property tax appeal refunds paid by a municipality during a tax year along with the reserve for uncollected taxes maintained by the municipality during that tax year shall be apportioned by the municipal tax collector between the municipality, county, school district, fire districts and any other taxing district operating within the boundaries of the municipality.

b. The tax collector shall send a notice to the county, school district and fire districts setting forth their pro rata share of the property tax appeal refunds paid by the municipality during the tax year along with their pro rata share of the municipal reserve for uncollected taxes maintained by the municipality during the tax year, for inclusion into their subsequent annual budgets.

c. In the year following the tax year in which the property tax appeal refunds were paid by a municipality and in which the reserve for uncollected taxes was maintained by the municipality, the municipal tax collector shall deduct the applicable pro rata share from the amounts to be paid to the county and each school district and fire district as required by N.J.S.40A:14-79, R.S.54:4-74 and R.S.54:4-75.

3. N.J.S.40A:14-79 is amended to read as follows:

40A:14-79. Upon proper certification pursuant to section 9 of P.L.1979, c.453 (C.40A:14-78.5), the assessor of the municipality in which the fire district is situate shall assess the amount to be raised by taxation to support the district budget against the taxable property therein, in the same manner as municipal taxes are assessed and the said amount shall be assessed, levied and collected at the same time and in the same manner as other municipal taxes.

For the purposes of this section:

"District tax due" or "tax due" means the amount so assessed less the district's proportionate share of the municipal reserve for uncollected taxes and of the property taxes refunded by the municipality in the preceding tax year pursuant to subsection a. of section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill).

The collector or treasurer of the municipality in which said district is situate shall pay over all [moneys so assessed] district tax due to the treasurer or custodian of funds of said fire district as follows: on or before April 1, an amount equaling 21.25% of all [moneys so assessed] tax due; on or before July 1, an amount equaling 22.5% of all [moneys so assessed] tax due; on or before October 1, an amount equaling 25% of all [moneys so assessed] tax due; and on or before December 31, an amount equaling the difference between the total of all [moneys so assessed] tax due, and the total [amount] of the quarterly amounts of such moneys previously paid over[,]to the fire district. These moneys are to be held and expended for the purpose of providing and maintaining means for extinguishing fires in such district.

Notwithstanding anything herein to the contrary, the municipal governing body may authorize, in the cash management plan adopted by it pursuant to N.J.S.40A:5-14, a schedule of payments of fire district [moneys] tax due by which an amount greater than required on any of the first three payment dates cited herein may be paid over. The municipal governing body and board of fire commissioners may, by concurrent resolution, adopt a schedule of payments of fire district [moneys] tax due by which an amount less than required on any of the first three payment dates cited herein may be paid over. Such resolution shall be included in the cash management plan adopted by the municipal governing body pursuant to N.J.S.40A:5-14.

The commissioners may also pay back, or cause to be paid back to such municipality, any funds or any part thereof paid to the treasurer or custodian of funds of such fire district by the collector or treasurer of the municipality, representing taxes levied for fire district purposes but not actually collected in cash by said collector or treasurer.

(cf: P.L.1985, c.288, s.4)

4. R.S.54:4-74 is amended to read as follows:

54:4-74. For the purpose of this section:

"County tax due" or "tax due" means the amount so assessed less the county's proportionate share of the municipal reserve for uncollected taxes and of the property taxes refunded by the municipality in the preceding tax year pursuant to subsection a. of section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill).

The governing body of each municipality shall cause to be paid to the treasurer of the county, in four installments, the amount of county tax due, and the other county taxes required to be assessed and raised in such municipality, on the fifteenth day of the month in which each installment of taxes shall become payable. The amount to be payable as each of the first two installments shall be one-quarter of the total [tax] county tax due and one-quarter of the other total county taxes finally levied against the municipality for the preceding year, and the amount to be payable for the third and fourth installments shall be the county tax due, and for the other county taxes the full tax as levied, for the current year less the amount charged as the first and second installments. The total amount thus found to be payable as the last two installments shall be divided equally for and as each installment. The governing body of each municipality shall cause to be paid to the county treasurer on December fifteenth of each year all of the taxes required to be assessed and raised by taxation in such taxing district for state school and other state purposes.

(cf: R.S.54:4-74)

5. R.S.54:4-75 is amended to read as follows:

54:4-75. For the purpose of this section:

"School tax due" or "tax due" means the amount so assessed less the school district's proportionate share of the municipal reserve for uncollected taxes and of the property taxes refunded by the municipality in the preceding tax year pursuant to subsection a. of section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill). The governing body of each municipality shall pay over to the custodian of school moneys, in the case of school districts in which appropriations for school purposes are made by the inhabitants of the school district, within forty days after the beginning of the school year, twenty per centum (20%) of the [appropriation for local school purposes] moneys from school tax due, and thereafter, but prior to the last day of the school year, the balance of the moneys [raised in the municipality] from school tax due for school purposes in such amounts as may be requested from time to time [be requested] by the Board of Education, within thirty days after each request. The Board of Education shall not request any more money at any one time than shall be required for its expenditures for a period of eight weeks in advance; provided, however, that the Board of Education may at any time, but not earlier than fifteen days prior to the beginning of the school year, request sufficient moneys to meet all interest and debt redemption charges maturing during the first forty days of the school year. The governing body may make payments of such moneys in advance of the time and in excess of the amounts required by this section.

(cf: P.L.1952, c.274, s.1)

6. R.S.54:4-76 is amended to read as follows:

54:4-76. The governing body of the municipality or the county shall cause the county tax due, as calculated pursuant to R.S.54:4-74, and other county taxes levied, [local] school tax due, as calculated pursuant to R.S.54:4-75, and State taxes to be paid as and when due for payment. If there shall not be sufficient funds in the treasury available for such payments, the governing body shall immediately borrow sufficient money and pay such taxes due. The board of chosen freeholders of each county may by resolution fix the rate of discount to be allowed for the payment to the county treasurer of county taxes previous to the date on which they will become due for payment. The rate so fixed shall not exceed six per centum per annum, and shall be allowed only in case of payment on or before the thirtieth day previous to the date on which said taxes will become due for payment to the county treasurer. On any part of the taxes payable to the county treasurer and on any part of the taxes payable to the State by the county treasurer, which shall remain unpaid after the time within which they are required to be paid by this chapter, the taxing district or county in arrears shall pay to the county or State, as the case may be, interest at the rate of six per centum per annum upon the delayed payment.

(cf: P.L.1940, c.21, s.1)

7. Section 10 of P.L.1941, c.397 (C.54:4-63.10) is amended to read as follows:

10. The municipality on February fifteenth of each year shall, in addition to the regular installment of county, school and fire district taxes to be paid on said date, pay to the county [an amount] , school and fire districts amounts determined by multiplying the total amount of assessments in the added assessment list for the previous year by the county, school, fire district and State rate, as applicable, for the preceding year, and such [amount] amounts shall be for the use of the county, school district and fire districts.

(cf: P.L.1941, c.397, s.10)

8. Section 11 of P.L.1947, c.413 (C.54:4-63.22) is amended to read as follows:

11. The municipality, on February fifteenth of each year, shall, in addition to the regular installment of county, school and fire district taxes to be paid on said date, pay to the county [an amount] , school and fire districts amounts determined by multiplying the total amount of assessments, if any, in the omitted property assessment list for the previous year by the county, school, fire district and State rate, as applicable, for the particular year of the assessment, and such [amount] amounts shall be for the use of the county, school district and fire districts.

(cf: P.L.1947, c.413, s.11)

9. Section 8 of P.L.1968, c.184 (C.54:4-63.38) is amended to read as follows:

8. The municipality on February 15 of each year shall, in addition to the regular installment of county, school and fire district taxes to be paid on said date, pay to the county [an amount] , school and fire districts amounts determined by multiplying the total amount of assessments in the omitted assessment list for the previous year by the county, school, fire district and State rate, as applicable, for the preceding year, and such [amount] amounts shall be for the use of the county, school district and fire districts.

(cf: P.L.1968, c.184, s.8)

10. This act shall take effect immediately.

STATEMENT

This bill would require persons appealing the valuation of a property assessed over $750,000 to submit a professional appraisal prior to filing the tax appeal. Currently, the threshold amount for appealing directly to tax court is $750,000. Many property tax appeals are withdrawn by taxpayers once an appraisal has been performed in anticipation of the tax appeal hearing. The bill requires the appraisal to be filed on or before March 1 of the tax year or the tax appeal will not be considered timely filed. The bill also requires county governments, school districts and fire districts to share in the burden of paying for the municipal reserve for uncollected taxes and for property tax refunds. Under current law only the county shares in the cost of property tax refunds. The bill requires the municipal tax collector to send a notice of the pro rata share of the municipal reserve for uncollected taxes and for property tax appeal refunds paid by the municipality during the tax year to the county, school districts and fire districts for inclusion into their subsequent annual budgets. In the year following the tax year in which the reserve for uncollected taxes was maintained and the property tax refunds were paid, the municipal tax collector is then required to deduct the applicable pro rata share of the reserve for uncollected taxes and of the property tax refunds from the amounts to be paid to the county and each school district and fire district as required by N.J.S.40A:14-79, R.S.54:4-74 and R.S.54:4-75.

Finally, the bill permits school districts and fire districts to share in the added and omitted taxes collected by a municipality during the tax year. Under current law only the county shares in the tax collections for added and omitted assessments.

Requires appraisal prior to appeal on certain property; requires counties and taxing districts to share cost of uncollected taxes and tax refunds; includes school and fire districts in distribution of added and omitted assessments.