SENATE COMMUNITY AFFAIRS COMMITTEE
STATEMENT TO
SENATE, No. 1759
STATE OF NEW JERSEY
DATED: JUNE 5, 1997
The Senate Community Affairs Committee reports favorably Senate Bill No. 1759.
This bill would authorize 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 that over assesses a property and charges an end of the year late penalty on taxes owed on that property, and that subsequently loses the tax appeal on the same property, should not be entitled to retain the late penalty on taxes owed on that property.