SENATE, No. 841
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 26, 1996
By Senator CONNORS
An Act concerning property tax delinquencies and amending R.S.54:4-66, P.L.1994, c.72, and R.S.54:4-67.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.54:4-66 is amended to read as follows:
54:4-66. a. Taxes for municipalities operating under the calendar fiscal year shall be payable the first installment as hereinafter provided on February 1, the second installment on May 1, the third installment on August 1 and the fourth installment on November 1, after which dates if unpaid, they shall become delinquent and remain delinquent, including for the purposes of R.S.54:3-27 or R.S.54:51A-1, until such time as all unpaid taxes, including taxes and other liens subsequently due and unpaid, together with interest have been fully paid and satisfied;
b. From and after the respective dates hereinbefore provided for taxes to become delinquent, the taxpayer or property assessed shall be subject to the penalties hereinafter prescribed;
c. The dates hereinbefore provided for payment of the first and second installments of taxes being before the true amount of the tax will have been determined, the amount to be payable as each of the first two installments shall be one-quarter of the total tax finally levied against the same property or taxpayer for the preceding year or, if directed to do so for the tax year by resolution of the municipal governing body, one-half of the tax levied for the second half of the preceding tax year, as appropriate; and the amount to be payable for the third and fourth installments shall be the full tax as levied for the current year, less the amount charged as the first and second installments; the amount thus found to be payable as the last two installments shall be divided equally for and as each installment. An appropriate adjustment by way of discount shall be made, if it shall appear that the total of the first and second installments exceeded one-half of the total tax as levied for the year;
d. (Deleted by amendment, P.L.1994, c.72).
e. Taxes may be received and credited as payments at any time, even prior to the dates hereinbefore fixed for payment.
(cf: P.L.1994, c.72, s.1)
2. Section 2 of P.L.1994, c.72 (C.54:4-66.1) is amended to read as follows:
2. Taxes in municipalities operating under the State fiscal year shall be payable and shall be delinquent pursuant to the following provisions:
a. Taxes shall be payable the first installment as hereinafter provided on February 1, the second installment on May 1, the third installment on August 1 and the fourth installment on November 1, after which dates if unpaid, they shall become delinquent and remain delinquent, including for the purposes of R.S.54:3-27 or R.S.54:51A-1, until such time as all unpaid taxes, including taxes and other liens subsequently due and unpaid, together with interest have been fully paid and satisfied;
b. From and after the respective dates hereinbefore provided for taxes to become delinquent, the taxpayer or property assessed shall be subject to the penalties hereinafter prescribed;
c. The following terms and phrases shall have the meaning defined below when calculating taxes under this section:
"Assessed value" means the net valuation taxable of each parcel of property in a municipality in the current tax year.
"Billing percentage" is used to calculate the amount required to meet municipal and non-municipal fiscal obligations for the first six months of the calendar year.
"Calendar year" means the current calendar year.
"Certification of tax billing levies" is the form and associated procedures promulgated by the director on which the tax collector calculates the appropriate billing amounts for the first and second installments of the calendar year.
"Director" means the director of the Division of Local Government Services.
"Municipal tax levy" means the tax levy set in the municipal budget for the current fiscal year.
"Non-municipal tax levy" means the total of all of the tax levies certified by the county board of taxation for non-municipal purposes for the calendar year.
"Preliminary municipal tax levy" is the amount certified by the governing body for the purposes of third and fourth installment municipal tax levy.
"Prior year" means the calendar year just previous to the quarters being billed.
"Six month required non-municipal tax levy" means the amount necessary to be paid by the municipality to the county and non-municipal taxing districts for the first six months of the calendar year.
"Total adjusted prior year taxes" means the prior year taxes billed after adjustments are made to incorporate changes to tax bills between tax billings.
"Total assessed value" means the total net valuation taxable for the municipality pursuant to the most recent Table of Aggregates promulgated by the County Board of Taxation.
d. The following formulas shall be utilized in calculating the taxes for each parcel or property:
(1) the municipal rate shall be the preliminary municipal tax levy divided by the total assessed value per one hundred dollars of assessed valuation.
(2) the non-municipal rate shall be the non-municipal tax levy divided by the total assessed value per one hundred dollars of assessed value.
(3) "Municipal billing percentage" shall be the municipal tax levy less the sum of the adjusted taxes billed for the prior year third and fourth installments, divided by the total adjusted prior year taxes.
(4) "Non-municipal billing percentage" shall be calculated by dividing the six month required non-municipal tax levy by the total adjusted prior year taxes.
e. Taxes for each parcel or property shall be calculated as follows:
(1) The tax collector shall prepare the certification of tax billing levies and calculate the first and second installments by computing the municipal portion, which shall be the municipal billing percentage multiplied by the total adjusted prior year taxes; and then the non-municipal portion, which shall be the non-municipal billing percentage multiplied by the total adjusted prior year taxes. The sum of the two shall be divided in half for each installment. A copy of the certification shall be filed with the director and the county board of taxation.
(2) The third and fourth installments shall be calculated by computing the municipal portion, which shall be the product of the municipal rate times the total assessed value per one hundred dollars of assessed value, and subtracting the taxes billed for the previous first and second installments; and then the non-municipal portion which shall be the product of the non-municipal rate times the total assessed value per one hundred dollars of assessed value, and subtracting the taxes billed for the previous first and second installments. The sum of the two shall be divided in half for each installment.
f. Taxes may be received and credited as payments at any time, even prior to the dates hereinabove fixed for payment.
(cf: P.L.1994, c.72, s.2)
3. R.S.54:4-67 is amended to read as follows:
54:4-67. The governing body of each municipality may by resolution fix the rate of discount to be allowed for the payment of taxes or assessments previous to the date on which they would become delinquent. The rate so fixed shall not exceed 6% per annum, shall be allowed only in case of payment on or before the thirtieth day previous to the date on which the taxes or assessments would become delinquent. The governing body may also fix the rate of interest to be charged for the nonpayment of taxes or assessments on or before the date when they would become delinquent, and may provide that no interest shall be charged if payment of any installment is made within the tenth calendar day following the date upon which the same became payable. The rate so fixed shall not exceed 8% per annum on the first $1,500.00 of the delinquency and 18% per annum on any amount in excess of $1,500.00, to be calculated from the date the tax was payable until the date that actual payment to the lienholder will be next authorized.
"Delinquency" means the sum of all taxes and municipal charges due on a given parcel of property covering any number of quarters or years. The property shall remain delinquent, as defined herein and including for the purposes of R.S.54:3-27 or R.S.54:51A-1, until such time as all unpaid taxes, including subsequent taxes and liens, together with interest thereon shall have been fully paid and satisfied. The delinquency shall remain notwithstanding the issuance of a certificate of sale pursuant to R.S.54:5-32 and R.S.54:5-46. The governing body may also fix a penalty to be charged to a taxpayer with a delinquency in excess of $10,000 who fails to pay that delinquency prior to the end of the fiscal year. If such taxes are fully paid and satisfied by the holder of an outstanding tax sale certificate, the holder shall be entitled to receive the amount of the penalty as part of the amount required to redeem such certificate of sale. The penalty so fixed shall not exceed 6% of the amount of the delinquency.
(cf: P.L.1994, c.32, s.4)
4. This act shall take effect immediately and shall be retroactive to the effective date of P.L.1994, c.32, May 12, 1994.
STATEMENT
This bill clarifies the intent of the Legislature in enacting P.L.1994, c.32 to require that tax delinquencies be satisfied, including unpaid taxes and tax sale certificates, prior to appealing an assessment in accordance with R.S.54:3-27 or R.S.54:51A-1. This legislation is remedial in nature and a particular response to the tax court opinion in Caven Point Realty Assoc. c/o J. Burstyn v. City of Jersey City, issued January 30, 1995, 14 N.J.Tax 496.
Requires tax delinquencies, including unpaid property taxes and tax sale certificates, be satisfied prior to appealing assessment in accordance with R.S.54:3-27 or R.S.54:51A-1.