ASSEMBLY, No. 1234

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman AZZOLINA

An Act eliminating interest charges on certain unpaid taxes and assessments owed by persons in military service and their dependents and amending P.L.1979, c.317.

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

    1. Section 18 of P.L.1979, c.317 (C.38:23C-18) is amended to read as follows:

    18. a. The provisions of this section shall apply when any taxes or assessments, whether general or special, other than taxes on income, whether falling due prior or during the period of military service in respect of personal property, money or credits or real property owned and occupied for dwelling, agricultural, or business purposes by a person in military service, or his dependents, at the commencement of his period of military service and still so occupied by his dependents or employees, are not paid.

    b. No sale of such property shall be made to enforce the collection of such tax or assessment, or any proceeding or action for such purpose commenced, except upon leave of court granted upon application made therefor by the collector of taxes or other officer whose duty it is to enforce the collection of taxes or assessments. The court thereupon, unless in its opinion the ability of the person in military service to pay such taxes or assessments is not materially affected by reason of such service, may stay such proceedings or such sale, as provided in this act, for a period extending not more than 6 months after the termination of the period of military service of such person.

    c. When by law such property may be sold or forfeited to enforce the collection of such tax or assessment, such person in military service shall have the right to redeem or commence an action to redeem such property, at any time not later than 6 months after the termination of such service, but in no case later than 6 months after the date when this act ceases to be in force; but this shall not be taken to shorten any period, now or hereafter provided by the laws of the State, or any political subdivision thereof, for such redemption.

    d. Whenever any tax or assessment shall not be paid when due, no interest shall accrue upon such tax or assessment due and unpaid [shall bear interest until paid at the rate of 6% per annum from the date when such tax first became a lien] until 6 months after the termination of the period of military service, after which time interest shall accrue on the unpaid tax or assessment at the rate of 6% per annum until paid, and no other penalty or interest shall be incurred by reason of such nonpayment, whether such penalty or interest shall have accrued prior or shall accrue subsequent to the commencement of the period of military service of such person. Any lien for such unpaid taxes or assessment shall also not include [such] interest thereon until 6 months after the termination of the period of military service.

(cf: P.L.1979, c.317, s.18)

    2. This act shall take effect immediately.

STATEMENT

    Current law protects persons in military service and their dependents from losing their property due to unpaid taxes and assessments by allowing a court to stay proceedings to enforce payment until six months after the individual leaves military service unless it determines that the person's ability to pay is not materially affected by the military service. The law, however, does provide that delinquent taxes and assessments, other than taxes on income, owed by persons in military service and their dependents shall bear interest at the rate of 6% per annum until paid. This bill amends the existing law to provide that no interest would begin to accrue on these amounts until six months after termination of military service. 

Eliminates interest charges payable by persons in military service and their dependents on certain unpaid taxes and assessments.