SENATE COMMUNITY AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 1331

STATE OF NEW JERSEY

DATED: SEPTEMBER 19, 1996

      The Senate Community Affairs Committee reports favorably Senate Bill No. 1331.

      This bill 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.