Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
SYNOPSIS
Authorizes issuance of special emergency notes to finance special emergency appropriations for payment of current year property assessment appeal refunds over three years.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing the issuance of special emergency notes to finance special emergency appropriations for the payment of current year property assessment appeal refunds and amending N.J.S.40A:4-53.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1961, c.22 (C.40A:4-55.1) is amended to read as follows:
1. a. Any municipality may adopt ordinances authorizing special emergency appropriations to cover the cost of extraordinary expenses for the repair or reconstruction of streets, roads or bridges damaged by snow, ice, frost, or floods.
b. Any municipality may adopt an ordinance authorizing special emergency appropriations to cover the cost of current year real property assessment refunds.
The use of special emergency appropriations to cover the costs of the items set forth in subsections a. and b. of this section shall be subject to the requirements of sections 2 through 5 of P.L.1961, c.22 (C.40A:4-55.2 through C.40A:4-55.5).
(cf: P.L.1961, c.22, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill would authorize municipalities to use special emergency appropriations to pay current year real property assessment appeal refunds.
Under current law (P.L.1961, c.22; N.J.S.A.40A:4-55.1 et seq.), when any such appropriation is financed from surplus funds available, at least 1/3 of the amount of the appropriation must be included in each annual budget until the appropriation has been fully provided for. If the appropriation is paid using special emergency notes, at least 1/3 of the notes, and any renewal of the notes must mature and be paid in each year, so that all notes and renewals have matured and been paid not later than the last day of the third year following the date of the emergency resolution.
The provisions of this bill are intended to address the difficulty many municipalities have faced in funding the cost of current year assessment appeal refunds. The sponsor intends that the ability to fund such expenses over a three-year period will minimize the financial effect of a large number of assessment appeal refunds on a municipality and its property taxpayers.