Bill Text: NJ S2193 | 2010-2011 | Regular Session | Introduced
Bill Title: Permits municipality to pay tax refund in equal installments over period of three years.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2010-08-23 - Withdrawn from Consideration [S2193 Detail]
Download: New_Jersey-2010-S2193-Introduced.html
Sponsored by:
Senator BARBARA BUONO
District 18 (Middlesex)
SYNOPSIS
Permits municipality to pay tax refund in equal installments over period of three years.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning property tax appeals and amending P.L.1975, c.361 and R.S.54:51A-8.
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, [together with interest thereon from the date of 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 ), in substantially equal payment periods and substantially equal payment amounts within [60 days] three years of the date of final judgment.
(cf: P.L.1983, c.137, s.1)
2. R.S.54:51A-8 is amended to read as follows:
54:51A-8. a. Conclusiveness of judgment; changes in value; effect of revaluation program. Where a judgment not subject to further appeal has been rendered by the Tax Court involving real property, the judgment shall be conclusive and binding upon the municipal assessor and the taxing district, parties to the proceeding, for the assessment year and for the two assessment years succeeding the assessment year covered by the final judgment, except as to changes in the value of the property occurring after the assessment date. The conclusive and binding effect of the judgment shall terminate with the tax year immediately preceding the year in which a program for a complete revaluation or complete reassessment of all real property within the district has been put into effect. If as of October 1 of the pretax year, the property in question has been the subject of an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change, the conclusive and binding effect of such judgment shall terminate with said pretax year.
b. If the assessor increases
the assessment or fails to reflect on the tax duplicate a county board of
taxation or Tax Court judgment issued prior to the final preparation of the tax
duplicate in either of the two years following the year for which the judgment
of the Tax Court was rendered and if said judgment is a final judgment not
subject to further appeal, the burden of proof is on the taxing district to
establish that the assessor acted reasonably in increasing
the assessment. If the Tax Court finds that the assessor did not act
reasonably in increasing the assessment or failed to reflect said judgment on
the tax duplicate, the Tax Court shall award to the taxpayer reasonable counsel
fees, appraisal costs and other costs which shall be paid by the taxing
district.
c. 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, less any amount of taxes, interest, or both, which may be applied against delinquencies pursuant to section 2 of P.L.1987, c.137 (C.54:4-134), in substantially equal payment periods and substantially equal payment amounts within three years of the date of final judgment.
(cf: P.L.1999, c.208, s.16)
3. This act shall take effect immediately.
STATEMENT
This bill requires that, in the event a taxpayer is successful in a real property tax appeal, the taxing district wherein the real property is located shall pay to the taxpayer any excess taxes paid, without interest, within three years of the date of the final judgment. Current law requires full payment of any excess taxes paid, including interest calculated at a 5% annual rate, within 60 days of the final judgment.
This legislation is intended to relieve municipalities of the burden of paying property tax refunds within a relatively short period of time. The sponsor notes that may municipal governments are experiencing greater fiscal pressures due to the current economic conditions. This bill would allow municipalities to better manage the payment of property tax refunds by budgeting for them over a defined period of time.
