Title
Dept/Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Reducing Interest rates charged on delinquent property taxes.
Purpose: Implement a temporary interest reduction program on delinquent taxes
Program Period: 10/9/12 through 11/30/12 only.
Additional Information:
Current Rate Proposed Rate
8% on first $1,500. delinquency 4% on first $1,500. delinquency
18% on remaining balance 9% on remaining balance
Body
WHEREAS, the Tax Collector of the City of Newark is statutorily mandated to collect current and delinquent taxes so as the Administration can provide essential services to the citizens of the City of Newark, and the Administration recognizes that revenue collection rates need to be increased; and
WHEREAS, the Administration proposes a 50% reduction in the interest rates assessed against delinquent property taxes only from 8% on the first 1,500.00 of the delinquency and 18% on the remaining balance to Four 4% and Nine 9% respectively; and
WHEREAS, This interest rate reduction is exclusive to and does not include:
· Third Party/Outside Lienholders
· Accounts in Bankruptcy or any other Litigation pending or settled
· Tax Appeals (pending stipulations)
· Pending Settlements of any kind (property taxes only)
WHEREAS, the Administration concurs with the mandate of the Tax Collector to increase collections by offering a reduction in the current interest rates. Said benefit will be for a time certain, to commence on 10-9/12 and end on 11/30/12.
WHEREAS, to receive an interest rate reduction, the payment shall and must be for the entire delinquent amount due on the date of payment. No partial payments can receive benefit of the interest reduction.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT:
1). The Tax Collector be and is hereby authorized to reduce the current interest rates charged on delinq...
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