Where the prime rate varies over the period during which a property tax appeal is pending, the

a scenario where a property tax appeal is filed in State Tax Court on September 20, 2019 and

adjudicated on June 24, 2020 reducing the 2019 assessment from $2,000,000.00 to $1,600,000.00.

December 31, 2020 is 3.25% (3.25% + 1% = 4.25%), 4.25% would be the interest rate applied to

the refund during that period. In this example, the tax collector would be calculating interest from

between August 9, 2020 (46 days after adjudication) and August 23, 2020 (the latest date by

which the taxpayer must be paid his or her refund). The method of the refund interest calculation

is delineated below:

11/9/2019 through 12/31/2019 = 52 days at 5% $14,280 x 5% divided by 360 x 52 = $103.13

1/1/2020 through 3/31/2020 = 90 days at 5% $14,280 x 5% divided by 360 x 90 = $178.50*

4/1/2020 through 8/9/2020 = 128 days at 4.25% $14,280 x 5% divided by 360 x 128 = $215.79

Total refund = $14,777.42

* Since the 5% remains unchanged one could also calculate using 11/9/19 to 3/31/20 = 142 days, leading

payment periods and substantially equal payment amounts over the three years. This does not

preclude the Local Finance Board from approving the issuance of notes pursuant to N.J.S.A. 40A:4-

89 when municipal obligations from tax appeals have contributed to prior year operating deficits.

Please review Local Finance Notice 2012-4 for details regarding options available through the

Local Finance Board to further spread the cost of tax appeals.

All non-residential tax appeal refunds at or below $100,000, and all residential tax appeal refunds,

shall continue to be refunded within 60 days of the date of final judgment.

Both of the above-referenced changes made by P.L. 2019, c.230 are applicable to appeals filed

after August 9, 2019.

The grace period cannot be extended beyond the first calendar day of the next calendar month

immediately following the quarterly property tax installment due date, and only applies to the

first $10,000 due for the property tax quarter. A taxpayer cannot receive a grace period of

greater than 10 days for the portion of any quarterly installment amount that exceeds $10,000.

third business day following the date of adoption.

In addition to establishing the rate of delinquent interest for the remainder of the tax year, Section

10 of P.L. 2020, c.34 amends N.J.S.A. 54:4-67(b) to give municipal governing bodies the option of

establishing the rate of delinquent interest for one or more specifically designated time periods

coinciding with one or more property tax quarters (i.e. January 1 to March 31; April 1 to June 30;

The notice may be separate from the tax bill. To satisfy the notice requirement, the municipality

The Division reminds municipalities that reducing the rate of interest on delinquent taxes and

municipal charges is a blunt instrument that reduces the incentive for taxpayers and ratepayers to

health. Lowering the interest rate to 0% would cause future delinquencies to be calculated

when establishing an interest rate for delinquent payments. See Commercial Casualty Inc. Co. v.

Please note that any grace period instituted under this law does not need to last the maximum

duration. An authority should be mindful of cash flow and the system’s fiscal solvency when

considering the appropriate length of a grace period during a declared emergency.

The existing 30-day grace period for past due payments connected to a sewerage treatment

standalone water or sewer utility is not similarly authorized and is limited to a maximum 10-day

grace period for individual water or sewer utility payments.

Local units availing themselves of the discretionary authority provided by P.L. 2020, c. 39 shall act

consistently amongst all properties or apply the relief to properties of the same use type or other

appropriate category (e.g. residential units). The law reinforces the principle that water shutoffs

are a discretionary, rather than mandatory, means of addressing non-payment regardless of the

circumstances.

N.J.A.C 5:31-3.2 requires sewerage authorities and municipal utilities authorities to file a

certification at least once a year, or more frequently if required by the municipal tax collector, to

establish tax liens for all unpaid service charges due and owing at the time the certification is filed.

partner who live in a qualifying continuing care retirement community and would otherwise be

eligible for the annual $250 veteran’s property tax deduction can now receive the deduction. P.L.

2019, c. 203 was the enabling legislation, and voters in the November 2019 general election

approved a State Constitutional amendment authorizing the law to take effect.

For purposes of this law, a continuing care retirement community or “CCRC” is defined as:

A qualified veteran or surviving partner who resides in a qualifying CCRC shall receive, the

amount of the deduction to the extent of the share of taxes assessed against the portion of the

determination that he or she is eligible. The total amount of veteran’s property tax deductions

statement on the property tax bill listing the following shared services information:

format of the optional shared services statement on the tax bill. At the outset, we emphasize that

any municipality’s property tax bill has finite space, and much of that space contains mandatory

information. The optional shared services statement cannot displace information that must

appear on the tax bill.

prior budget year. Descriptions of the types of shared services should use as few words as

possible while still providing the taxpayer with a reasonably informative description. Space

permitting, the municipality may list the government entities that provide or is providing each

shared service.

The following is an example of how a shared services tax bill statement should appear:

# of Shared Services w. Realized Savings/Total Annual Savings: 4/$350,000

Types of Shared Services/Annual Realized Savings:

During an extended federal government shutdown, P.L. 2019, c. 491 authorizes municipalities to

adopt an extended property tax grace period if a taxpayer, or the taxpayer’s spouse/civil union

partner/domestic partner, is either:

In place of the up to 10-day property tax grace period authorized under N.J.S.A. 54:4-67, the

municipality may adopt a resolution extending the grace period for qualifying individuals on or

before the date upon which the next property tax installment payment is payable. However, in

order for a municipality to extend the grace period, the federal shutdown shall have a duration of

greater than 21 days, and either 1) must remain in effect as of the property tax installment due

date; or 2) conclude less than 14 days prior to the property tax installment due date.

A qualifying taxpayer must provide the municipality with proof that the taxpayer’s pay, or the pay

of their spouse or partner, is derived from a federal government agency affected by the extended

shutdown. In the case of a federal employee, that proof shall be demonstrated by a pay stub

showing employment by a federal government agency that is affected by the shutdown. In the

grace period due to a federal shutdown, the municipal clerk shall forward the resolution to the

Division of Local Government Services no later than the third business day next following

adoption. If the municipality is under State Supervision or is subject to a memorandum of

understanding or similar agreement with the Division as a condition of receiving supplemental

State aid (e.g. Transitional Aid), the Director must approve the resolution before it can become

effective.

Approved: Melanie R. Walter, Director