Division Issues Local Finance Notice on Recent Tax Collection & Tax Appeals Legislation
The Division of Local Government Services issued Local Finance Notice 2020-25 explaining recently enacted legislation pertaining to property tax collection, tax appeals refunds, and the waiver of interest and lien enforcement for certain delinquent water and sewer utility payments during emergency circumstances. The notice details the following:
- P.L. 2019, c. 230 changes the interest rates for tax appeals refunds and requires refund of successful non-residential property tax appeals exceeding $100,000 within three years.
- P.L. 2020, c. 34 permits the Division Director to authorize municipalities to extend property tax grace period during a governor declared state of emergency as well providing the governing body the option of establishing the delinquent interest rate for one or more specifically designated time period coinciding with one or more of the property tax quarters.
- P.L. 2020, c. 39 permits Sewerage authorities, municipal utilities authorities, and, under certain circumstances, municipalities and counties, the discretion to delay enforcement measures on delinquent water and sewer payments when the Governor has declared a state of emergency or public health emergency.
- P.L. 2020, c. 203 provides honorably discharged veterans and their surviving spouse, civil union partner, or domestic partner who live in a qualifying continuing care retirement community and would otherwise be eligible for the annual $250 veteran’s property tax deduction can now receive the deduction.
- P.L. 2019, c. 393 permits municipalities, at their discretion, to include a statement on the property tax bill listing the certain information on shared services.
- P.L. 2019, c. 491 authorizes municipalities to adopt an extended property tax grace period if a taxpayer, or the taxpayer’s spouse/civil union partner/domestic partner, is either an employee of a federal government agency who is furloughed because of a shutdown ,and receives unemployment benefits during the shutdown or who works during a shutdown but is not paid because of the shutdown; or a contractor whose pay is received through a contract with a federal government agency but whose payment is delayed or diminished because of a shutdown, provided that the contractor receives unemployment benefits during the shutdown.
We suggest you review this Local Finance Notice with your Tax Collector and Chief Financial Officer to determine the impact on your municipality.
Contact: Lori Buckelew, Assistant Executive Director, firstname.lastname@example.org, 609-695-3481, x112.