ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3967

with committee amendments

STATE OF NEW JERSEY

DATED:  MAY 4, 2020

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 3967, with committee amendments.

     As amended, this bill permits a municipality to extend the 10-day grace period in which property taxes may be paid without accruing interest during a period in which a public health emergency has been declared by the Governor and is in effect, and would clarify the form and content of the notice required to be provided to property taxpayers when a municipality extends the 10-day grace period.

     The bill would require municipalities to provide notice to all taxpayers when the governing body extends the 10-day grace period during a public health emergency.  The bill would permit the governing body of a municipality to satisfy the notice requirement by using either regular mail, or by using a telephonic system and one of the following alternatives:  electronic mail, a text messaging system, or any other digital platform used by the municipality to disseminate information to municipal residents electronically.  The municipality would also be required to notify the Director of the Division of Local Government Services in the Department of Community Affairs of its adoption of a resolution providing for an extension of the 10-day grace period not later than the third business day next following the municipal governing body’s adoption of the resolution. 

COMMITTEE AMENDMENTS:

      The committee amended the bill to remove provisions related to the requirement to provide notice to all taxpayers of new interest rates to be charged to delinquent payments, specifically the provision requiring the notice to specify the property tax quarter or quarters for which a new rate or rates of interest will be effective.

      The committee amendments also provide that municipalities that extend the 10-day grace period in which property taxes may be paid without accruing interest, as provided in the bill as introduced, may only do so during a period in which a public health emergency has been declared by the Governor and is in effect.  As introduced, the bill permitted municipalities to extend the 10-day grace period during a period in which a public health emergency, or a state of emergency, or both, has been declared and is in effect.   

      Finally, the committee amendments would require a municipality to provide notice to all taxpayers when the governing body extends the 10-day grace period during a public health emergency, and would require a municipality to notify the Director of the Division of Local Government Services in the Department of Community Affairs of its adoption of a resolution providing for an extension of the 10-day grace period not later than the third business day next following the municipal governing body’s adoption of the resolution. 

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.