Bill Text: NJ A418 | 2024-2025 | Regular Session | Introduced
Bill Title: Permits municipalities to issue two separate property tax bills to property taxpayers; requires fire districts, school districts, and county governments to share in burden of property assessment appeal refunds.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly State and Local Government Committee [A418 Detail]
Download: New_Jersey-2024-A418-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ROBERT AUTH
District 39 (Bergen and Passaic)
SYNOPSIS
Permits municipalities to issue two separate property tax bills to property taxpayers; requires fire districts, school districts, and county governments to share in burden of property assessment appeal refunds.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act designated the "Transparent Tax Act of 2015," amending various parts of the statutory law, and supplementing chapter 4 of Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.54:4-65 is amended to read as follows:
54:4-65. a. The Director of the Division of Local Government Services in the Department of Community Affairs shall approve the form and content of property tax bills.
b. (1) [Each] Except in those municipalities that send out two separate property tax bills as permitted in subsection f. of this section, each tax bill shall have printed thereon a brief tabulation showing the distribution of the amount raised by taxation in the taxing district, in such form as to disclose the rate per $100.00 of assessed valuation or the number of cents in each dollar paid by the taxpayer which is to be used for the payment of State school taxes, other State taxes, county taxes, local school expenditures, free public library taxes, and other local expenditures. The last named item may be further subdivided so as to show the amount for each of the several departments of the municipal government. In lieu of printing such information on the tax bill, any municipality may furnish the tabulation required hereunder and any other pertinent information in a statement accompanying the mailing or delivery of the tax bill.
(2) When a parcel receives a homestead property tax credit pursuant to the provisions of P.L.2007, c.62 (C.18A:7F-37 et al.), the amount of the credit shall be included with the tax calculation as a reduction in the total tax calculation for the year. One-half of the amount of the credit shall be deducted from taxes otherwise due for the third installment and the remaining one-half shall be deducted from taxes otherwise due for the fourth installment.
(3) There shall be included on or with the tax bill the delinquent interest rate or rates to be charged and any end of year penalty that is authorized and any other such information that the director may require from time to time.
(4) In municipalities wherein a property tax reward program is operational, there shall be included on or with the tax bill the amount of the property tax reward as a credit against property taxes due and payable by a property owner who participates in the program. The property tax reward program shall be identified on the tax bill as the source of the property tax credit.
c. The tax bill shall also include a statement about the availability, on the Internet website of the Department of
Community Affairs, of the amounts of State aid and assistance received by the municipality, school districts, special districts, free public libraries, county governments that offset property taxes that are otherwise due on each parcel, along with a statement about the availability, on the Internet website of the Division of Taxation in the Department of the Treasury, of a listing of, and eligibility requirements for, the various State property tax relief programs. The tax bill shall also include the links to the Internet websites of the Department of Community Affairs and the Division of Taxation containing this information. The director shall cause the amounts of said State aid and assistance that shall serve as the basis for the calculation for each parcel to be displayed on the Internet website of the Department of Community Affairs. The director shall set standards for the display of the statement on the tax bill.
d. The tax bill or form mailed with the tax bill shall include thereon the date upon which each installment is due.
e. If a property tax bill includes in its calculation a homestead property tax credit, the bill shall, in addition to the calculation showing taxes due, either display a notice concerning the credit on the face of the property tax bill or with a separate notice, with the content and wording as the director provides.
f. (1) At the sole discretion of the municipality, the tax bill may also include a statement listing the number and type of shared services entered into by the municipality, the dollar value of the savings to the municipality from each of those shared services, and a total amount of municipal savings resulting from those shared services. The statement shall be in a format promulgated by the Director of the Division of Local Government Services in the Department of Community Affairs pursuant to paragraph (2) of this subsection.
(2) On or before the first day of the third month next following the enactment of P.L.2019, c.393, the Director of the Division of Local Government Services in the Department of Community Affairs shall promulgate the format for the shared services statement permitted to be placed on the tax bill by a municipality pursuant to paragraph (1) of this subsection.
g. (1) In lieu of sending one property tax bill to each taxpayer as otherwise provided in subsection b. of this section, the governing body of a municipality may, by resolution, authorize the tax collector to issue two separate property tax bills to each property taxpayer within the taxing district. One tax bill shall state only the amount of property taxes due and payable for municipal purposes. The second property tax bill shall state the amount of property taxes due and payable, after allowance any property tax deductions that are permitted by law, for county purposes, school purposes, fire district purposes, and for the purposes of any other special district on behalf of which the municipality collects property taxes.
Both tax bills shall include a brief tabulation showing the distribution of the total amount raised by property taxation in the taxing district by purpose of tax in such form as to disclose the rate per $100 of assessed valuation or the number of cents in each dollar paid by the taxpayer to be used for the payment of the taxes shown on each property tax bill.
In the event that other State or local taxes are imposed, and are to be collected, locally after the effective date of .P.L. , c. (pending before the Legislature as this bill), only those additional taxes to be raised for municipal budgets shall appear on the municipal purposes property tax bill. All other such taxes shall appear on the second property tax bill along with county purposes property taxes, school purposes property taxes, fire district purposes property taxes, and property taxes for any other special district on behalf of which the municipality collects property taxes.
(2) A mortgage company making property tax payments on behalf of a taxpayer shall not be required to make separate municipal and non-municipal tax payments to a municipality even though the mortgage company receives two separate property tax bills from a municipality.
(3) The Director of the Division of Local Government Services in the Department of Community Affairs shall, pursuant to the "Administrative Procedure Act." P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate such rules and regulations, and design such forms, as are necessary to effectuate the purposes of this subsection.
(cf: P.L.2021, c.99, s.3)
2. (New section) a. The total of the amount of property tax appeal refunds paid by a municipality during a tax year shall be apportioned by the municipal tax collector between the municipality, county, school district, fire districts, and any other taxing district operating within the boundaries of the municipality.
b. The tax collector shall send a notice to the county, school district, fire districts, and any other taxing district, setting forth their pro rata share of the property tax appeal refunds paid by the municipality during the tax year, for inclusion into their subsequent annual budgets.
c. In the year following the tax year in which the property tax appeal refunds were paid, the municipal tax collector shall deduct the applicable pro rata share from the amounts to be paid to the county and each school district, fire district, and any other taxing district, as required by N.J.S.40A:14-79, R.S.54:4-74, and R.S.54:4-75.
3. N.J.S.40A:14-79 is amended to read as follows:
40A:14-79. Upon proper certification pursuant to section 9 of P.L.1979, c.453 (C.40A:14-78.5), the assessor of the municipality in which the fire district is situate shall assess the amount to be raised by taxation to support the district budget against the taxable property therein, in the same manner as municipal taxes are assessed and the said amount shall be assessed, levied and collected at the same time and in the same manner as other municipal taxes.
For the purposes of this section:
"District tax due" or "tax due" means the total sum of the amount so assessed less the district's proportionate share of the property taxes no longer owed by the municipality pursuant to the blue acres property tax exemption established by subsection b. of section 1 of P.L.2013, c.261 (C.54:4-3.3g) [and] , less any applicable credit established by subsection e. of section 1 of P.L.2013, c.261 (C.54:4-3.3g) plus the district's proportionate share of the property taxes refunded by the municipality in the preceding tax year pursuant to subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
The collector or treasurer of the municipality in which said district is situate shall pay over all district tax due to the treasurer or custodian of funds of said fire district as follows: on or before April 1, an amount equaling 21.25% of all tax due; on or before July 1, an amount equaling 22.5% of all tax due; on or before October 1, an amount equaling 25% of all tax due; and on or before December 31, an amount equaling the difference between the total of all tax due, and the total of the quarterly amounts of such moneys previously paid over to the fire district. These moneys are to be held and expended for the purpose of providing and maintaining means for extinguishing fires in such district.
Notwithstanding anything herein to the contrary, the municipal governing body may authorize, in the cash management plan adopted by it pursuant to N.J.S.40A:5-14, a schedule of payments of fire district tax due by which an amount greater than required on any of the first three payment dates cited herein may be paid over. The municipal governing body and board of fire commissioners may, by concurrent resolution, adopt a schedule of payments of fire district tax due by which an amount less than required on any of the first three payment dates cited herein may be paid over. Such resolution shall be included in the cash management plan adopted by the municipal governing body pursuant to N.J.S.40A:5-14.
The commissioners may also pay back, or cause to be paid back to such municipality, any funds or any part thereof paid to the treasurer or custodian of funds of such fire district by the collector or treasurer of the municipality, representing taxes levied for fire district purposes but not actually collected in cash by said collector or treasurer.
(cf: P.L.2013, c.261, s.2)
4. R.S.54:4‑74 is amended to read as follows:
54:4-74. For the purpose of this section:
"County tax due" or "tax due" means the total sum of the amount so assessed less the county's proportionate share of the property taxes no longer owed by the municipality pursuant to the blue acres property tax exemption established by subsection b. of section 1 of P.L.2013, c.261 (C.54:4-3.3g) [and] , less any applicable credit established by subsection e. of section 1 of P.L.2013, c.261 (C.54:4-3.3g) plus the district's proportionate share of the property taxes refunded by the municipality in the preceding tax year pursuant to subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), but shall include all amounts collected by the county under agreements entered into by municipalities pursuant to the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et seq.).
The governing body of each municipality shall cause to be paid to the treasurer of the county, in four installments, the amount of county tax due, and the other county taxes required to be assessed and raised in such municipality, on the fifteenth day of the month in which each installment of taxes shall become payable, except, that in those years when the third installment has been determined by the tax collector to be due after August 10, the installment shall be due no later than five days after the twenty-fifth day from when the tax bill was mailed or otherwise delivered pursuant to subsection a. of R.S.54:4-64, but no later than September 15. The amount to be payable as each of the first two installments shall be one-quarter of the total county tax due and one-quarter of the other total county taxes finally levied against the municipality for the preceding year, and the amount to be payable for the third and fourth installments shall be the county tax due, and for the other county taxes the full tax as levied, for the current year, less the amount charged as the first and second installments. The total amount thus found to be payable as the last two installments shall be divided equally for and as each installment. The governing body of each municipality shall cause to be paid to the county treasurer on December fifteenth of each year all of the taxes required to be assessed and raised by taxation in such taxing district for State school and other State purposes.
(cf: P.L.2015, c.247, s.2)
5. R.S.54:4‑75 is amended to read as follows:
54:4-75. For the purpose of this section:
"School tax due" or "tax due" means the total sum of the amount so assessed less the school district's proportionate share of the property taxes no longer owed by the municipality pursuant to the blue acres property tax exemption established by subsection b. of section 1 of P.L.2013, c.261 (C.54:4-3.3g) [and] , less any applicable credit established by subsection e. of section 1 of P.L.2013, c.261 (C.54:4-3.3g) plus the district's proportionate share of the property taxes refunded by the municipality in the preceding tax year pursuant to subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
The governing body of each municipality shall pay over to the board secretary or treasurer of school moneys, as appropriate, in the case of school districts in which appropriations for school purposes are made by the inhabitants of the school district, within forty days after the beginning of the school year, twenty per centum (20%) of the moneys from school tax due, and thereafter, but prior to the last day of the school year, the balance of the moneys from school tax due for school purposes in such amounts as may be requested from time to time by the Board of Education, within thirty days after each request. The Board of Education shall not request any more money at any one time than shall be required for its expenditures for a period of eight weeks in advance; provided, however, that the Board of Education may at any time, but not earlier than fifteen days prior to the beginning of the school year, request sufficient moneys to meet all interest and debt redemption charges maturing during the first forty days of the school year. The governing body may make payments of such moneys in advance of the time and in excess of the amounts required by this section. Notwithstanding provisions of this section to the contrary, in those years when the third installment of property taxes has been determined by the tax collector to be due after August 10, the installment shall be due no later than five days after the twenty-fifth day from when the tax bill was mailed or otherwise delivered pursuant to subsection a. of R.S.54:4-64, but no later than September 1.
(cf: P.L.2013, c.261, s.4)
6. This act shall take effect immediately but subparagraphs (1) and (2) of subsection f. of section 1 of this act shall remain inoperative until January 1 next following enactment.
STATEMENT
This bill is designated the "Transparent Tax Act of 2015." It is intended to provide clarity to local property taxpayers and to share the burden of assessment appeal refunds between all local taxing districts.
Specifically, sections 1 and 2 of this bill would allow municipalities, upon adoption of a resolution by the governing body, to send to each property taxpayer two separate tax bills, one indicating the amount due and payable for municipal purposes property taxes, and the other indicating the amount due and payable for county purposes property taxes, school purposes property taxes, fire district purposes property taxes and any appropriate special district taxes, less any property tax deductions that are permitted by law.
A mortgage company making property tax payments on behalf of a taxpayer would not be required to make separate municipal and non-municipal tax payments to a municipality even though the mortgage company received two separate property tax bills from a municipality.
Those municipalities which choose not to send out two separate tax bills would be required to continue sending out one tax bill that indicates the amount of tax to be paid for municipal, county, school, fire district, and other special district purposes as provided in R.S.54:4-65.
It is the sponsor's intent that this provision will remind municipal property taxpayers that while a municipality, by law, is charged with the responsibility to issue property tax bills on behalf of not only itself, but all taxing districts (county, school district, fire district, etc.), the amount of property taxes attributable to municipal purposes generally does not make up the largest portion of the property tax bill.
Sections 3 through 6 of this bill would require county governments, school districts, fire districts and other taxing districts to share in the burden of paying for property tax refunds. Under current law, only the county shares in this burden with municipalities through the county tax equalization process. The bill requires the municipal tax collector to send a notice of the pro rata share of the property tax appeal refunds paid by the municipality during the tax year to the county, school districts and fire districts for inclusion into their annual budgets. In the year following the tax year in which the refunds were paid, the municipal tax collector is then required to deduct the applicable pro rata share of the property tax refunds from the amounts to be paid to the county and each school district and fire district as required by N.J.S.40A:14‑79, R.S.54:4‑74 and R.S.54:4‑75.
It is intended that this provision will ease the burden of property assessment appeal refunds on municipal budgets by spreading the amount of a taxpayer refund proportionately between all taxing districts on behalf of which a municipality collects property taxes.
