Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Alternate Method of Calculating the Reserve for Uncollected Taxes
Purpose: RESOLUTION COMPUTING 2025 RESERVE FOR UNCOLLECTED TAXES PURSUANT TO N.J.S.A. 40A:4-41c(2)
Program Period: Budget Year 2025
Additional Information:
A certified copy of this resolution must be submitted to the Division of Local Government Services.
body
WHEREAS, N.J.S.A. 40A:4-41(c)(2), enacted into law (P.L. 2010, c. 56), provides alternate methods of calculating the Reserve for Uncollected Taxes, and
WHEREAS, one method under N.J.S.A. 40A:4-41c(2) permits the Governing Body of any municipality in which the amount of tax reductions resulting from tax appeal judgments of the County Tax Board pursuant to R.S. 54:3-21 et seq., or the State Tax Court pursuant to R.S. 54:48-1 et seq., result in tax reductions in the preceding fiscal year, may elect to calculate the current year reserve for uncollected taxes by reducing the certified tax levy of the prior year by the amount of the tax levy adjustment resulting from those judgments. Election of this choice shall be made by resolution, approved by a majority vote of the full membership of the governing body prior to the adoption of the annual budget pursuant to N.J.S.A. 40A:4-5; and
WHEREAS, the City of Newark’s Adjusted Tax Levy in 2024 was $495,419,335.49; and
WHEREAS, during 2024 the City of Newark’s Tax Levy was reduced by $7,464,331.83 in 2024 tax appeals; and
WHEREAS, the City of Newark has determined that it is advantageous for the City of Newark to utilize the method under N.J.S.A. 40A:4-41(c)(2),
NOW, THEREFORE BE IT RESOLVED by the Municipal Council of the City of Newark, New Jersey, that by a majority vote of the full membership of the Municipal Council of the City of Newark, approves that the maximum percentage to be used for the reserve for uncollected taxes in the 2025 budget is 95.77% based on N.J.S.A. 40A:4-41(c)(2); and
BE IT FURTHER RESOLVED, that the Director of the Division of Local Government Services in the Department of Community Affairs, be and is hereby requested to give his written consent to allow the City of Newark to compute the Reserve for Uncollected Taxes pursuant to the provisions of N.J.S.A. 40A:4-41c(2).
BE IT FURTHER RESOLVED, that the City Clerk upload a certified copy of this resolution on the FAST System for the Director of the Division of Local Government Services.
STATEMENT
This resolution authorizes the Municipal Council, by a majority vote of the full membership, to approve the use of an alternate method of calculating the Reserve for Uncollected Taxes which will be beneficial for the City.