Governor Signs Bill on Prepayment of Property Taxes

 

On April 20, Governor Murphy signed into law A-3382/S-1971<http://www.njleg.state.nj.us/2018/Bills/A3500/3382_R1.PDF>, which permits taxpayers to make dedicated prepayments toward anticipated property taxes.  The law requires that regardless if the governing body adopted a resolution, the tax collector must receive property tax payments at any time during the year. Payments may be made in full or in installments, not less than one dollar.

In addition, the law permits a dedicated payment, which is defined as a prepayment toward anticipated quarterly property tax installment prior to the issuance of a tax bill, be made to the tax collector. Any dedicated payment must be credited toward the amount to become due and payable. If the taxpayer is delinquent on property taxes or other municipal charges, the taxpayer must first satisfy all outstanding delinquencies before being permitted to make a dedicated prepayment.

If the dedicated prepayment exceeds the total property tax bill the municipality must refund the taxpayer within 60 days of issuance of the property tax bill. If the governing body does not meet within those 60 days, at the next regularly scheduled governing body meeting the refund must be issued. In a situation in which the mortgagee pays the property tax bill and the property owner makes a dedicated prepayment towards the property taxes the refund is issued to the second-in-time payor.

If the dedicated prepayment is less than the property tax bill, the taxpayer must pay the difference due in the same manner as other taxes are collected.

The law took effect on April 20 and is retroactive to July 1, 2017.

 

Lori Buckelew

Senior Legislative Analyst

NJ League of Municipalities

609.695.3481 x112