Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Alternate Method of Calculating the Reserve for Uncollected Taxes
Purpose: Requesting the consent of the Division of Local Government Services to adjust the amount of Reserve for Uncollected Taxes required to be included in the City Budget.
Program Period: Budget Year 2022
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, enacted into law (P.L. 2010, c. 56), provides alternate methods of calculating the Reserve for Uncollected Taxes; and
WHEREAS, for any municipality in which tax appeal judgments have been awarded to property owners from action 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., in the preceding fiscal year, the Governing Body of the municipality may elect to determine the reserve for uncollected taxes by using the average of the percentages of taxes levied which were received in cash by the last day of each of the three (3) preceding fiscal years. 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 introduction of the annual budget pursuant to N.J.S.A. 40A:4-5; and
WHEREAS, the City of Newark's Adjusted Average Tax Levy for the years 2019, 2020 and 2021 was 95.26%; and
WHEREAS, for the year 2022 the City of Newark will use 95.25% for the Reserve for Uncollected Taxes; 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:4-41c(1).
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 Newark Municipal Council, approves that the maximum percentage to be used for the reserve for uncollected taxes in the 20...
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