NEW JERSEY – Senator Joe Pennacchio’s legislation easing the burden on municipalities faced with refunding excess property taxes was signed by Governor Murphy Tuesday.
Under the new law, A-862/S-926, towns will be authorized to issue property tax credits to homeowners who successfully appeal their assessments rather than issuing payments that can create financial pressures on cash-strapped towns.
“Previously, municipalities were required to refund the money within 60 days of the county board of taxation’s decision,” Pennacchio (R-26) said. “Due to revenue constraints, that isn’t enough time to free up the money for many towns.
“Local governments hit with a barrage of successful appeals could find themselves in a bind,” Pennacchio said. “Allowing them to issue credits against property taxes due the following year makes it easier to manage the municipality’s financial obligations.”
The property tax credits issued under the new law, which would include any interest accrued until the total refund is satisfied, would only be issued for up to three consecutive years, after which any outstanding balance owed to a taxpayer would be paid in full immediately.