Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: To implement a short term Amnesty Program to reduce interest rates charged on delinquent property taxes and water and sewer charges.
Purpose: Implement Amnesty Program on delinquent property taxes and water and sewer charges.
Program Period: August 10, 2016 through September 12, 2016
Additional Information:
Current Rate Proposed Rate
8% on first $1,500.00 delinquency 0% on first $1,500.00 delinquency
18% on remaining balance 0% on remaining balance
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WHEREAS, in light of the City’s current financial situation, the Administration together with the Municipal Council recognizes that there is a need to immediately increase the percentage of collections for property taxes to avoid any drastic increase in the 2016 tax rate, by offering a short term “Amnesty Program;” and
WHEREAS, increasing the collection rate has a direct impact on the 2016 Municipal Budget, it is necessary to increase all Municipal Revenue Collections; and
WHEREAS, it is the desire of the Administration and the Municipal Council to implement this short term program which will enable those affected to pay the delinquent taxes, resulting in an increase in the overall collection rate, while conferring a benefit on all citizens and taxpayers of the City of Newark; and
WHEREAS, the Amnesty Program will authorize the Tax Collector and the Chief Financial Officer, in their Statutory Capacity, to waive accrued interest and penalties on delinquent property taxes and water and sewer charges for the year 2015 or prior years and Municipal Tax Liens ONLY for the period August 10, 2016 through September 12, 2016 Only; and
WHEREAS, the Amnesty Program is Exclusive to and DOES NOT INCLUDE:
・ Third Party/Outside Lienholder purchased or assigned
・ Accounts in Bankruptcy or any other litigation pending or settled
・ Tax Appeals (Pending Stipulations)
・ Pending Settlements of any kind regarding property taxes
WHEREAS, to receive benefit of the Amnesty Program, payments must be for the entire delinquent amount owing and due, and must be paid by Certified Bank Funds, Bank or Postal Money Orders, Credit or Debit Cards ONLY at the time of payment. No PERSONAL OR BUSINESS CHECKS will be accepted and no partial payments can or will receive benefit of this program.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Tax Collector and Chief Financial Officer are hereby authorized to commence with a thirty day Amnesty Program by waiving interest and penalties on delinquent taxes and water and sewer charges inclusive of 2015 or prior years, and Municipal Tax Liens Only, for the period August 10, 2016 through September 12, 2016 ONLY.
2. The account is not under the protection of the U.S. Bankruptcy Court, which prohibits the City of Newark from collection of this debt, inclusive of any claims being dismissed or discharged.
3. This Amnesty Program is EXCLUSIVE to any/all pending, settled, or stipulation of settlement, State or County Board Judgments.
4. The account is NOT part of any pending settlements of any kind.
5. Payment shall be for the total outstanding balance due at the time payment is made. All payments must be by Certified Funds, Bank or Postal Money Orders, Credit or Debit Cards ONLY, NO PERSONAL or BUSINESS CHECKS will be accepted and no exceptions will be allowed for any reason.
6. All payments sent by mail must be postmarked by the deadline date of September 12, 2016, no exceptions will be made.
7. This Amnesty Program is exclusive to any/all properties acquired, transferred, purchased or negotiated through any Federal, Civil, Municipal, Superior or State Court.
8. This Amnesty is exclusive to and does not pertain to any funds, interest, penalties or fees due to Third Party Lienholders/Outside Buyers, purchased or Assigned.
9. Upon expiration of the aforementioned Amnesty Program period, interest will be assessed without regard to the temporary rate of 0%, and return to the set rate of 8% and 18% respectively.
10. This resolution shall take effect on the program dates, August 10, 2016 through September 12, 2016 and will not be extended or amended.
11. The Tax Collector and Chief Financial Officer are hereby authorized to do all things necessary within their statutory duties to implement this program.
STATEMENT
This Resolution authorizes the Tax Collector and Chief Financial Officer to commence a 30 day Amnesty, 0% interest and penalties due on delinquent property taxes and water and sewer charges for the years 2015 and prior, and Municipal Tax Liens ONLY, provided payment is received during the period: August 10, 2016 through September 12, 2016 ONLY.