Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Extend the due date for 4th Quarter Property Taxes
Purpose: To provide homeowners and property owners additional time to pay their property taxes due to the delay in the delivery of Tax Bills.
Program Period: November 12, 2023 through December 1, 2023 only
Additional Information:
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WHEREAS, the Finance Director and Tax Collector are statutorily mandated to collect Property Taxes so that the Administration may provide essential services to the citizens of the City of Newark, and the Administration recognizes that; and
WHEREAS, N.J.S.A. 54:4-66(a) establishes the due dates for the quarterly real property tax payments as February 1, May 1, August 1 and November 1, and further establishes that tax payments received thereafter are delinquent; and
WHEREAS, it has been the practice of the City of Newark pursuant to N.J.S.A. 54:4-67(a)(1) to allow a ten (10) day grace period from when the property taxes are due; and
WHEREAS, pursuant to N.J.S.A. 54:4-67(a)(1), for any property tax payment that is received after the ten day grace period, the City of Newark assesses a late fee equivalent to 8% on the first $1,500.00 of the delinquency and 18% on any amount in excess of $1,500.00, to be calculated from the date the tax was payable until the date that the actual payment is made; and
WHEREAS, due to the delay in the adoption of the City of Newark 2023 Operating Budget, the 2023 Final Property Tax Bills were not sent out by the statutory date; and
WHEREAS, N.J.S.A. 54:4-66.3(d) provides that property taxes shall not be subject to interest until the twenty fifth day after the tax bill is mailed; and
WHEREAS, the City of Newark anticipates mailing the tax bill within the statutory period provided in N.J.S.A. 54:4-66.3(d) (“mailing date”); and
WHEREAS, the grace period for this quarter’s property taxes should therefore by extended to December 1, 2023; and
WHEREAS, in an effort to avoid a potential burden on the citizens, homeowners and property owners of the City of Newark and to allow them sufficient time from mailing of the 2023 Final Property Tax Bill, the Municipal Council finds it in the City’s best interest to extend the statutory due date, for 2023 4th Quarter Property Taxes, which has a due date of November 10th(inclusive of the ten day grace period), to December 1, 2023, for the 2023 4th Quarter Property Tax Bills only.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT:
1. The Tax Collector is hereby authorized to extend the due date for the 2023 4th Quarter Property Tax payment to December 1, 2023.
2. The Tax Collector shall not assess any interest on 4th Quarter Property taxes until after December 1, 2023.
3. Any 4th Quarter Property tax payment received after December 1, 2023, shall be subject to interest and such interest may be assessed back from November 1, 2023, without regard to this Resolution.
4. The Tax Collector shall provide adequate notice on the Property Tax Bill of the due date, December 1, 2023, and the date upon which interest shall be charged on delinquent property tax payments.
5. This Resolution shall take effect on the date of its adoption, end on December 1, 2023, and will not be amended or extended.
6. The Tax Collector is hereby authorized to do all things necessary to complete the within.
STATEMENT
This Resolution authorizes the Tax Collector and Director of Finance to extend the payment due date for the 2023 4th Quarter Property Taxes to December 1, 2023.