Share to Facebook Share to Twitter Bookmark and Share
File #: 16-0944    Version: 1 Name: Resolution to calculate Reserve for Uncollected Taxes (RUT)
Type: Resolution Status: Adopted
File created: 5/27/2016 In control: Finance
On agenda: 7/7/2016 Final action: 7/7/2016
Title: Dept/ Agency: Finance Action: ( ) Ratifying (X) Authorizing ( ) Amending Type of Service: Provide Alternate Method of Calculating the Reserve for Uncollected Taxes. Purpose: To adjust the Amount of Reserves for Uncollected Taxes Program Period: 2016
Title
Dept/ Agency: Finance
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Provide Alternate Method of Calculating the Reserve for Uncollected Taxes.
Purpose: To adjust the Amount of Reserves for Uncollected Taxes
Program Period: 2016
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:4-41(c)(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 introduction of the annual budget pursuant to N.J.S.A. 40A:4-5; and

WHEREAS, the City of Newark's Adjusted Tax Levy in 2015 was $417,521,997.06; and

WHEREAS, during 2015 the City of Newark's Tax Levy was reduced by $1,366,448.08 in 2015 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 2016 budget is 96.18% based on N.J.S.A. 40A:4-41c(2); and

BE IT FURTHER RESOLVED, that the Director of the Division of ...

Click here for full text