Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Reducing Interest Rates charged on delinquent property taxes, water and sewer charges, and City-owned Municipal Tax Liens
Purpose: To implement a temporary Interest Reduction Program on delinquent taxes, water and sewer charges, and City-owned Municipal Tax Liens.
Program Period: November 1, 2021 through December 31, 2021, only
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, although the City of Newark is making progress towards eradicating the COVID-19 virus and its effects, the economic and financial hardships of the virus are still affecting residents, homeowners, businesses, and property owners. The Administration and Municipal Council recognizes that there is an ongoing need to assist those who are still affected financially, and desires to offer taxpayers a short term Amnesty/Interest Reduction Program; and
WHEREAS, given the continued financial hardships caused by the COVID-19 Pandemic, the Administration and Municipal Council desires to establish an Amnesty/Interest Reduction Program to include only the following: delinquent property taxes, water and sewer charges, and City-owned Municipal Tax Liens for the year(s) 2021 and prior, which will authorize the Tax Collector, Director of the Department of Finance, and Director of the Department of Water and Sewer Utilities to waive accrued interest only on said charges for the period of November 1, 2021 through December 31, 2021, only; and
WHEREAS, this Amnesty/Interest Reduction Program applies to interest only accrued on delinquent taxes, water and sewer charges and subsequent accrued interest only on City-owned Tax sale certificates; and
WHEREAS, this Amnesty/Interest Reduction Program does not include:
• Third Party Lienholders, purchased or assigned
• Tax Appeal, State or County Board Judgments where there are outstanding taxes;
• Bankruptcy accounts or any other litigated matters, pending or settled;
• Funds such as, interest, penalties, premiums or fees that may be due to a third party lien holder, purchased or assigned
• Penalties of any kind;
• Any accounts under Tax Abatement, Special Taxes or any Tax Abatement charges;
• Any properties acquired, transferred, purchased, or negotiated through any Federal, Civil, Municipal, State or Superior Court;
• Any property redeemed from a Municipal Foreclosure; and
WHEREAS, to receive the benefit of the Amnesty/Interest Reduction program, payments must be for the entire delinquent amount due, no exceptions. Payment must be made by Certified Bank Funds, Bank or Postal Money Orders or Cash Only. No Credit or Debit cards will be accepted. Partial Payments will not receive the benefit of this Amnesty/Interest Reduction Program.
NOW, THEREFORE BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Tax Collector, Director of the Department of Finance and Director the Department of Water and Sewer Utilities are hereby authorized to commence with an Amnesty/Interest Reduction Program by waiving interest only on delinquent charges, for the year(s) 2021 and prior, for the period November 1, 2021 through December 31, 2021, only, and is not retroactive.
2. Upon expiration of this Amnesty/Interest Reduction 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, and calculated from the original due date to the date of payment.
3. This resolution shall take effect on November 1, 2021, and end on December 31, 2021, and will not be extended or amended, and is not retroactive.
4. The Tax Collector, Director of the Department of Finance, and Director of the Department of Water and Sewer are hereby authorized to do all things necessary to accomplish this task.
STATEMENT
This Resolution authorizes the Tax Collector, Director of the Department of Finance and Director of the Department of Water and Sewer Utilities to commence an Amnesty/Interest Reduction Program, by setting the Interest rate at 0% on accrued interest only on delinquent property taxes, water and sewer charges, and City-owned tax liens for the period of November 1, 2021 through December 31, 2021, only.