S 3787: Requires municipal tax collectors who obtain payments in lieu of taxes under "Long Term Tax Exemption Law" to transmit county portion directly to county. - New Jersey

Reprint Senate 1/14/25 3R → Reprint ASL 5/15/25 4R · 4 edits

MODERATE

The Assembly State and Local Government Committee significantly expanded this bill by adding a new section amending R.S.54:4-74 to require municipalities to report detailed information about Long Term Tax Exemption Law agreements with each quarterly county tax payment. The committee also narrowed the penalty for failure to remit the 5% county share, limiting it to finance officers and only for willful or intentional non-compliance.

Scope change

The bill's scope expanded from solely amending the Long Term Tax Exemption Law (P.L.1991, c.431) to also amending county tax collection law (R.S.54:4-74), adding new reporting obligations for municipalities regarding their exemption agreements.

SCOPE

The bill now amends R.S.54:4-74 in addition to P.L.1991, c.431, extending its reach into county tax collection law.

REQUIREMENT

A new section requires the chief municipal finance officer to submit detailed information with each quarterly county tax installment for every Long Term Tax Exemption Law agreement, including project name and address, agreement dates, annual service charge amount, amount due to the county, and the portion of the installment attributable to the agreement.

ENFORCEMENT

The penalty for failing to remit the 5% county share is narrowed: it now applies only to the finance officer (not the tax collector), only under section 7 of P.L.1988, c.110 (C.40A:9-140.12), and only for willful or intentional failure, neglect, or refusal - a higher threshold than the previous standard.

TIMELINE

The effective date provision is clarified to specifically apply to financial agreements entered into on or after the effective date of P.L.2003, c.125, and the language about when the act applies to annual service charges is restructured for clarity.

Reprint Senate 12/19/24 2R → Reprint Senate 1/14/25 3R · 2 edits

MINOR

The Third Reprint of S 3787 makes two substantive changes to the tax exemption framework for urban renewal projects. First, it tightens the timing for municipalities to remit five percent of annual service charges to the county, replacing a general 'quarterly basis' with specific dates tied to existing municipal tax payment statutes (R.S.54:4-66 and R.S.54:4-74). Second, it adds a new personal enforcement mechanism allowing revocation or suspension of the certificate of the municipal tax collector or finance officer who fails to make the required remittance. The remainder of the diff consists of formatting reflow with no substantive content changes.

TIMELINE

The timing for municipalities to remit five percent of annual service charges to the county was changed from a general 'on a quarterly basis' to specific dates: notification on the dates specified in R.S.54:4-66 concerning municipal tax payment, and actual remittance pursuant to R.S.54:4-74 on the fifteenth day of the month in which each installment of taxes becomes payable.

ENFORCEMENT

A new personal accountability provision was added: if the five percent county remittance is not paid when due, the municipal tax collector or finance officer shall be subject to revocation or suspension of their certificate under section 5 of P.L.1979, c.384 (C.40A:9-145.5) or section 7 of P.L.1988, c.110 (C.40A:9-140.12), respectively.

Reprint SCU 12/5/24 1R → Reprint Senate 12/19/24 2R · 2 edits

MINOR

The Senate amended S 3787 to change how municipalities remit the five percent county share of annual service charges from urban renewal tax exemptions. The old event-based notification process (notify within seven days of receiving each payment) was replaced with a simpler quarterly notification and remittance requirement. A new enforcement mechanism was added allowing counties to sue municipalities for unpaid remittances, with interest at one percent per month plus attorneys' fees and court costs.

REQUIREMENT

The process for remitting the five percent county share of annual service charges changed from an event-based trigger (upon receipt of each payment, notify within seven days then transmit) to a quarterly basis where the municipal tax collector or finance officer notifies the county and transmits the remittance on a quarterly schedule.

ENFORCEMENT

A new provision allows the county to recover unpaid five percent remittances from the municipality through a court action, including the unpaid balance, interest at one percent per month, attorneys' fees, and court costs.

Introduced Version → Reprint SCU 12/5/24 1R · 3 edits

MINOR

This is a first reprint (1R) of S3787 following Senate Community and Urban Affairs Committee report on December 5, 2024. The substantive change broadens who may perform notification and remittance duties from 'the municipal tax collector' to 'the municipal tax collector or financial officer,' and removes a cross-reference to R.S.54:4-74. The bill's explanatory statement was dropped in this reprint version.

REQUIREMENT

The person responsible for notifying the municipality and county chief financial officer, and for transmitting the five percent remittance to the county, is expanded from 'the municipal tax collector' to 'the municipal tax collector or financial officer.' This appears in two places within Section 12 of P.L.1991, c.431.

TECHNICAL

The bracketed cross-reference '[in accordance with the provisions of R.S.54:4-74]' was removed from the provision requiring remittance of five percent of the annual service charge to the county.

The bill's explanatory STATEMENT section was removed in this reprint version, likely a formatting change for the committee report process.

Requires municipal tax collectors who obtain payments in lieu of taxes under "Long Term Tax Exemption Law" to transmit county portion directly to county.

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