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AN ORDINANCE AMENDING TITLE X, FINANCES AND TAXATION, CHAPTER 10:32, SPECIAL IMPROVEMENT DISTRICTS, OF THE REVISED ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY, 2000, AS AMENDED AND SUPPLEMENTED, TO AMEND VARIOUS SECTIONS INCREASING THE ADMINISTRATIVE FEE RETAINED BY THE CITY TAX COLLECTOR FROM ONE PERCENT (1%) TO TWO PERCENT (2%)
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WHEREAS, the City of Newark has established various Special Improvement Districts (“SIDs”) pursuant to N.J.S.A. 40:56-65 et seq., and Chapter 10:32 of the Code of the City of Newark; and
WHEREAS, Chapter 10:32 authorizes the City Tax Collector to collect special assessments and license fees on behalf of such districts and to retain an administrative fee for the costs associated with billing, collection, accounting, and disbursement of such funds; and
WHEREAS, the current administrative fee retained by the City Tax Collector is set at one percent (1%) of the amount collected; and
WHEREAS, the Municipal Council finds that an increase in the administrative fee is necessary and appropriate to reflect the administrative burden and costs incurred by the City in connection with the collection and administration of SID revenues; and
WHEREAS, the Municipal Council desires to amend Chapter 10:32 to increase the administrative fee retained by the City Tax Collector from one percent (1%) to two percent (2%) across all applicable Special Improvement District provisions;
NOW, THEREFORE, BE IT ORDAINED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
Note: Additions are shown as underlined and bold. Deletions are strikethroughs.
Section 1.
Section 10:32-2.5(m) of the Code of the City of Newark be and is hereby amended to read as follows:
The City Tax Collector shall withhold from each quarterly payment an Administrative Fee of 1% two percent (2%) of the amount actually collected by the Tax Collector.
Section 2.
Section 10:32-3.5(m) of the Code of the City of Newark be and is hereby amended to read as follows:
The City Tax Collector shall withhold from each quarterly payment an Administrative Fee of one (1%) percent two percent (2%) of the amount actually billed by the Tax Collector according to the adopted budget
Section 3.
Section 10:32-4.4(e) of the Code of the City of Newark be and is hereby amended to read as follows:
The City Tax Collector shall withhold from each quarterly payment to the District Management Corporation an Administrative Fee of one (1%) percent two percent (2%) of the special assessment actually collected by the Tax Collector according to the adopted budget.
Section 4.
Section 10:32-5.4(d) of the Code of the City of Newark be and is hereby amended to read as follows:
License fee assessments shall be collected by each hotel and transient accommodation owner or operator or transient space marketplaces (i.e. Airbnb) as a regular additional "room charge" imposed upon such hotel owners and operators based upon actual room rentals. Hotel and transient accommodation owners and operators and transient space marketplaces shall pay all such license fee assessments in quarterly installments due with regular real property tax payments each February, May, August, and November, which payments shall be received by the City Tax Collector and paid over to the Management Corporation by the end of each month in which the license fee assessments are collected. The City Tax Collector shall withhold from each quarterly payment an Administrative Fee of 1%, two percent (2%) of the amount actually collected by the Tax Collector. All license fee assessment payments collected by the Tax Collector shall be placed and maintained in a special account that shall at all times be segregated from general municipal funds.
Section 5.
Any and all other provisions of Chapter 10:32 which reference an administrative fee of one percent (1%) retained by the City Tax Collector are hereby amended to reflect an administrative fee of two percent (2%), whether or not specifically enumerated herein.
Section 6. Codification.
This Ordinance shall be deemed to be incorporated into the Code of the City of Newark as though fully set forth therein. The City Clerk shall cause this Ordinance to be codified and incorporated in the official copies of the Code. The City Clerk and the Corporation Counsel are authorized and directed to renumber, reorganize, or amend any Chapter, Article, and/or Section designation as necessary to effectuate the codification of this Ordinance and to avoid conflicts with existing provisions of the Code.
Section 7. Severability.
If anySection, Subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be unconstitutional or invalid by any court of competent jurisdiction, such decision shall not affect the remaining portions of this Ordinance.
Section 8. Repealer.
All ordinances or parts of ordinances inconsistent with this Ordinance are hereby repealed to the extent of such inconsistency.
Section 9. Effective Date.
This Ordinance shall take effect upon final passage and publication in accordance with law.
STATEMENT
This Ordinance amends Title X, Finances and Taxation, Chapter 10:32, Special Improvement Districts, of the Revised Ordinances of the City of Newark, New Jersey, 2000, as amended and supplemented to amend the administrative fee due to the City of Newark.