Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Tax Collector to issue estimated tax bills, 3rd Quarter 2016
Estimated Tax Levy: $423,057,182.98
Estimated Tax Rate: $3.458
Additional Information:
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WHEREAS, the City of Newark, New Jersey, has not adopted the budget for the calendar year 2016; and
WHEREAS, as a result of, the Essex County Board of Taxation is unable to verify the City of Newark’s tax rate and the City of Newark’s Tax Collector will be unable to mail the City’s 2016 Final Tax Bills on a timely basis; and
WHEREAS, the City of Newark’s Chief Financial Officer has computed an estimated tax levy in accordance to N.J.S.A. 54:4-66.3, and has signed a certification showing the tax levies for the previous years, the tax rates and the range of permitted estimated tax levies; and
WHEREAS, in accordance with Chapter 72. P.L. 1994, the Mayor and Municipal Council request that the Director of the Division of Local Government Services approve the estimated tax levy. Approval will enable the City of Newark to meet its financial obligations, maintain the tax collection rate, and provide uniformity for tax payments and save the unnecessary cost of interest expenses on borrowing.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1). The City of Newark’s Tax Collector is hereby authorized and directed to prepare and issue estimated tax bills for the Third Installment for 2016. The Tax Collector shall proceed and take such actions, as are permitted and required by L. 1994.C.72 (N.J.S.A. 54:4-66 and N.J.S.A. 54:4-66.3).
2). The entire estimated tax levy for 2016 is hereby set at $423,057,182.98. Attached hereto as Exhibit A, Calculation of 2016 Estimated Tax Rate.
3). The estimated tax rate (based on estimated levy) is hereby set at $3.458.
4). In accordance with the Law, the Third Quarter Installment shall not be subject to interest or penalties until the latter of August 1, 2016 or the 25th calendar day after the date that the estimated or regular tax bill was mailed. The estimated tax bills shall specify the due date and when interest will begin to accrue.
STATEMENT
This resolution authorizes the Tax Collector to issue estimated tax bills for the third quarter of 2016. Estimated tax bills are needed because the 2016 budget has not been adopted.