S2474

An Act concerning the extension of various deadlines applicable to local government units and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Notwithstanding the provisions of any law, rule, or regulation to the contrary, whenever a public health emergency, pursuant to the “Emergency Health Powers Act,” P.L.2005, c.222 (C.26:13-1 et seq.), or a state of emergency, pursuant to P.L.1942, c.251 (C.App.A.9-33 et seq.), or both, has been declared by the Governor and is in effect, the Director of the Division of Local Government Services in the Department of Community Affairs shall have the power to extend any deadline under the “Local Budget Law,” N.J.S.40A:4-1 et seq., the “Local Fiscal Affairs Law,” N.J.S.40A:5-1 et seq., the “Local Authorities Fiscal Control Law,” P.L.1983, c.313 (C.40A:5A-1 et seq.), the “Municipal Land Use Law,” P.L.1975, c.291 (C.40:55D-1 et seq.), under chapter 4 of Title 54 of the Revised Statutes with respect to the issuance of any tax bill, and under chapter 5 of Title 54 of the Revised Statutes with respect to a municipal tax sale, except that the Director of the Division of Local Government Services shall not have the authority to permit municipalities to institute an extended grace period pursuant to R.S.54:4-67 or to extend the dates for the payment of taxes by a municipality due to a county, a school district, or any other taxing district under chapter 4 of Title 54 of the Revised Statutes or any other law. The Director of the Division of Local Government Services, in consultation with the Director of the Division of Taxation in the Department of the Treasury, shall have the power to extend any other deadline established in chapter 1, chapter 3, chapter 4, or chapter 5 of Title 54 of the Revised Statutes if the Director of the Division of Local Government Services determines that the extension is necessary to minimize and mitigate additional hardships, loss, or suffering to the State and its political subdivisions. No municipality, county, or any other agency or political subdivision of this State shall enact or enforce any order, rule, regulation, ordinance, or resolution that, in any way, conflicts with any of the provisions of this section.

2. Notwithstanding any provision of law, rule, or regulation to the contrary, during the period of time that the public health emergency, pursuant to the “Emergency Health Powers Act,” P.L.2005, c.222 (C.26:13-1 et seq.), or the state of emergency, pursuant to P.L.1942, c.251 (C.App.A.9-33 et seq.), or both, as declared by the Governor pursuant to Executive Order No. 103, is in effect, the deadline for the payment of quarterly property taxes shall be extended without interest accruing thereon to the tenth calendar day of the next calendar month after the month in which the property taxes become payable pursuant to R.S.54:4-66, or section 2 of P.L.1994, c.72 (C.54:4-66.1), as appropriate, and shall be payable on that extended date, or at the end of a grace period concluding at a later date if established by a municipality pursuant to R.S.54:4-67. A quarterly property tax payment that is not paid by a property taxpayer by the extended date, or by the end of a grace period concluding at a later date, shall be assessed interest at a rate not to exceed five percent per annum from the extended due date to, and including, the date the property taxes are paid by the taxpayer. The provisions of this section shall not apply to property taxes due and owing by property taxpayers whose property tax payments are made from escrow accounts held by a bank or other financial institution holding a mortgage on the property for which the property taxes have been assessed and levied.

3. This act shall take effect immediately and shall be retroactive to March 9, 2020.

STATEMENT

This bill provides authority to the Director of the Division of Local Government Services in the Department of Community Affairs to extend certain deadlines applicable to local government units of the State during periods of emergency declared by the Governor. The deadlines that the director may extend include, but are not limited to, deadlines for: a county’s notification to the director of a county board of taxation’s failure to receive a copy of a school or municipal budget; a county board of taxation’s substitution of an adopted municipal budget for an amount certified by the director; a county board of taxation to complete a table of aggregates; the director to act as necessary in order to consolidate ballot questions and procedures when a governing body elects to hold certain referendums; the director to review and approve municipal budgets that are not subject to local review; a municipality to certify a preliminary tax levy; and a municipality to cause an annual audit of their books, accounts, and financial transactions. The bill also empowers the director to extend deadlines under the “Municipal Land Use Law,” P.L.1975, c.291 (C.40:55D-1 et seq.).

The bill expressly precludes the Director of the Division of Local Government Services from permitting municipalities to institute an extended grace period for quarterly property tax payments and other municipal charges under R.S.54:4-67 or extending the deadlines for the payment of taxes by a municipality due to a county, a school district, or any other taxing district under chapter 4 of Title 54 of the Revised Statutes or any other law.

Finally, the bill extends the deadline for the payment of quarterly property taxes during the period of time that the public health emergency or the state of emergency, or both, as declared by the Governor pursuant to Executive Order No. 103, is in effect. The bill provides that a quarterly property tax payment due and owing by a property taxpayer would be extended without interest accruing thereon to the tenth calendar day of the next calendar month after the month in which the property taxes become payable pursuant to law, and would be payable on that extended date, or at the end of a grace period concluding at a later date if established by a municipality pursuant to R.S.54:4-67. The bill also provides that a quarterly property tax payment that is not paid by a property taxpayer by that extended date, or by the end of a grace period concluding after the extended date, would be assessed interest at a rate not to exceed five percent from the extended due date to the date the property taxes are paid by the taxpayer.

The provisions of the bill regarding the extended due date for quarterly property taxes would not apply to property taxes due and owing by property taxpayers whose property tax payments are made from escrow accounts held by a bank or other financial institution holding a mortgage on the property for which the property taxes are assessed and payable, because property taxes have already been collected from the property taxpayer through mortgage payments.