[Corrected Copy]

SENATE, No. 1759

 

STATE OF NEW JERSEY

 

INTRODUCED DECEMBER 19, 1996

 

 

By Senators BASSANO and Bubba

 

 

An Act concerning property tax refunds and amending P.L.1975, c.361.

 

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

 

    1. Section 2 of P.L.1975, c.361 (C.54:3-27.2) is amended to read as follows:

    2. In the event that a taxpayer is successful in an appeal from an assessment on real property, the respective taxing district shall refund any excess taxes paid, including any penalties collected, together with interest thereon from the date of each such payment at a rate of 5% per annum, less any amount of taxes, interest, or both, which may be applied against delinquencies pursuant to section 2 of P.L.1983, c.137 (C.54:4-134), within 60 days of the date of final judgment.

(cf: P.L.1983, c.137, s.1)

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill authorizes a municipality to refund a late tax payment penalty paid by a taxpayer after a successful property tax appeal by the taxpayer on that same property.

    Under current law when a taxpayer is successful in an appeal from an assessment, the municipality must merely refund excess taxes paid, together with interest thereon from the date of payment at a rate of five percent per annum within 60 days of the date of final judgment.

    A municipality after over assessing a property, charging an end of the year late penalty on taxes owed on that property, then losing the tax appeal on the same property, should not be entitled to retain the late penalty on taxes owed on that property.


                             

 

Authorizes municipality to refund late tax payment penalty paid by taxpayer after successful property tax appeal.