New Jersey-2016-A2820-Introduced

An Act concerning property tax assessment and collection, amending various parts of the statutory law and repealing R.S.54:5-15.

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

1. Section 3 of P.L.1995, c.325 (C.40A:5-45) is amended to read as follows:

3. Subject to the provisions of sections 5 and 6 of P.L.1995, c.325 (C.40A:5‑47 and C.2B:1‑5), a local unit may establish a card payment system or electronic funds transfer system upon passage of a resolution of the governing body. The resolution shall specify those types of charges, taxes, fees, assessments, fines, or other obligations, including, but not limited to, the payment of delinquent taxes, fees and local unit liens, approved for card based or electronic funds transfer payment [, except that credit card payment shall not be authorized for the payment of delinquent local unit obligations or for the redemption of local unit liens]. The resolution shall further specify the circumstances under which the local unit shall prohibit the acceptance of card payment or electronic funds transfer.

(cf: P.L.1995, c.325, s.3)

2. Section 5 of P.L.1964, c.255 (C.54:4-8.44a) is amended to read as follows:

5. Every person who is allowed a deduction shall, except as hereinafter provided, be required to file with the collector of the taxing district on or before March 1 of the post‑tax year a statement under oath of his income for the tax year and his anticipated income for the ensuing tax year as well as any other information deemed necessary to establish his right to a tax deduction for such ensuing tax year, except that no post year statement shall be required to be filed for the year in which the property was sold. The collector may grant a reasonable extension of time for filing the statement required by this section, which extension shall terminate no later than May 1 of the post‑tax year, in any event where it shall appear to the satisfaction of the collector, verified by a physician's certificate, that the failure to file by March 1 was due to illness or a medical problem which prevented timely filing of the statement. In any case where such an extension is granted by the collector, the required statement shall be filed on or before May 1 of the post‑tax year.

Such statement shall be on a form prescribed by the Director of the Division of Taxation, in the Department of the Treasury and provided for the use of persons required to make such statement by the governing body of the municipality constituting the taxing district in which such statement is required to be filed and shall be mailed by the collector on or before February 1 of the post‑tax year to each person within the taxing district who was allowed a deduction in the preceding year. Each collector may require the submission of such proof as he shall deem necessary to verify any such statement. Upon the failure of any such person to file the statement within time herein provided or to submit such proof as the collector deems necessary to verify a statement that has been filed, or if it is determined that the income of any such person exceeded the applicable income limitation for said tax year, his tax deduction for said tax year shall be disallowed. A notice of disallowance, on a form prescribed by the director, shall be mailed to that person by the collector on or before April 1 of the post‑tax year or, where an extension of time for filing has been granted, no later than June 1, and his taxes to the extent represented by the amount of said deduction shall be payable on or before June 1 of the post‑tax year or, where an extension of time for filing has been granted no later than 30 calendar days after the notice of disallowance was mailed, after which date if unpaid, said taxes shall be delinquent, constitute a lien on the property, and, in addition, the amount of said taxes shall be a personal debt of said person.

The amount of any lien and tax liability shall be prorated by the tax collector upon the transfer of title based on the number of days during the tax year that entitlement to the tax deduction is established. The lien shall be considered satisfied by the tax collector upon payment of the prorated amount for that portion of the tax year for which entitlement to the tax deduction is not established.

(cf: P.L.1997, c.30, s.3)

3. Section 32 of P.L.1991, c.75 (C.54:4-38.1) is amended to read as follows:

32. a. Except as provided in subsection b. of this section, every assessor, prior to February 1, shall notify by mail each taxpayer of the current assessment [and preceding year's taxes]. Thereafter, the assessor or county board of taxation shall notify each taxpayer by mail within 30 days of any change to the assessment. This notification of change of assessment shall contain the prior assessment and the current assessment. The director shall establish the form of notice of assessment and change of assessment. Any notice issued by the assessor or county board of taxation shall contain information instructing taxpayers on how to appeal their assessment.

b. In the case of a municipality located in a county where the county board of taxation is participating in the demonstration program established in section 4 of P.L.2013, c.15 (C.54:1-104), every assessor, on or before November 15 of the pretax year, shall notify by mail each taxpayer of the preliminary assessment [and preceding year's taxes]. Thereafter, the assessor or county board of taxation shall notify each taxpayer by mail within 30 days of any change to the assessment. This notification of change of assessment shall contain the prior assessment and the current assessment. The director shall establish the form of notice of assessment and change of assessment. Any notice issued by the assessor or county board of taxation shall contain information instructing taxpayers on how to appeal their assessment.

c. The county board of taxation of the demonstration county shall make the preliminary data electronically accessible to the public by posting the data in searchable form on the county's website not later than 15 business days after the submission of the preliminary data.

(cf: P.L.2013, c.15, s.15)

4. R.S.54:5-14 is amended to tread as follows:

54:5-14. The official appointed as provided in section 54:5‑11 of this Title shall receive, for each certificate issued by him, a fee of [$10.00] $25.

(cf: P.L.1977, c.78, s.1)

5. R.S.54:5-15 is repealed.

6. This act shall take effect immediately.

STATEMENT

This bill proposes various revisions to the operations of local tax collector's and assessor's offices that are intended to make the operations of those offices more efficient.

The bill would allow a local unit to determine when it will accept debit, credit or electronic transfers for the payment of local unit obligations, including, but not limited to, the payment of delinquent taxes, fees and local unit liens. Under current law, a local unit cannot accept credit, debit or electronic funds transfers for delinquent payments or for the redemption of liens. The provisions of this bill will authorize local units to determine if, and when, it will accept a credit card, debit card or electronic funds transfer as a means of payment of a local unit obligation.

The bill would also provide that low-income senior citizens or disabled persons receiving the annual $250 property tax deduction do not have to file a post-tax year income statement for the year in which the property for which the property tax deduction was received, is sold. Current law requires that all recipients of this property tax deduction must file this post-tax year statement.

This bill would also amend current law, which requires the tax assessor to annually notify taxpayers by mail, prior to February 1, of the taxpayer's current assessment and preceding year's property taxes, to require only the mailed notification of the current assessment.

This bill would also increase to $25 from $10 the current search fee for a certificate issued by a municipality certifying the taxes, assessments and other municipal charges and liens levied against a parcel of real property that represent liens as of the date of the certificate. The increased fee more adequately represents the cost to the municipality of performing the searches required for the issuance of such a certificate.

Finally, the bill would repeal R.S.54:5-15, which currently limits to $2 per calendar year the fee charged to a lien certificate holder who applies for a continuation of the lien certificate within three years of the date of the certificate. The repeal of this section of law would allow a municipality to charge the same $25 fee for a continuation lien certificate as it would for the original lien search, since the same type and amount of search time and effort by a municipal employee are required for both searches.