ASSEMBLY LOCAL GOVERNMENT COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 2468

 

STATE OF NEW JERSEY

 

DATED: JANUARY 9, 1997

 

      The Assembly Local Government Committee reports favorably Assembly Bill No. 2468.

      Assembly Bill No. 2468 would permit a municipality to take into account county tax board or State tax court judgments in the calculation of the reserve for uncollected taxes. In any municipality in which tax appeal judgments have been awarded to property owners in the prior year, the municipality would be permitted 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. If the amount of the tax reductions ordered by the county tax board or the State tax court exceeds 1% of the preceding year's tax levy, then the municipality could elect to reduce the current year's 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. The elections to reduce the reserve for uncollected taxes would be made by resolution of the governing body adopted prior to introduction of the annual budget.       Assembly Bill No. 2468 is identical to Senate Bill No. 1331, which also was reported by this committee on January 9, 1997.