Municipalities may soon be able to reduce property taxes by using an individual’s income tax refund to cover the cost of their delinquent property taxes thanks to legislation sponsored by Senator Anthony M. Bucco and advanced today by the Senate Community and Urban Affairs Committee.

Municipalities may soon be able to reduce property taxes by using an individual’s income tax refund to cover the cost of their delinquent property taxes thanks to legislation sponsored by Sen. Tony Bucco and advanced today by the Senate Community and Urban Affairs Committee. (Pixabay)

“New Jersey’s antiquated tax laws regarding delinquent property taxes have consistently led to higher property taxes for homeowners throughout the state,” said Bucco (R-25). “In fact, delinquent property taxes have forced municipalities to place more funds in reserve for uncollected taxes—an action that inevitably raises all of our taxes. My legislation will allow localities to credit an individual’s income tax refund toward their delinquent property taxes. This small, but important change will make it much easier for local taxing authorities to collect on delinquent property tax obligations, reduce the reserve funds for uncollected taxes, and allow taxpayers to keep more of their hard-earned dollars.”

Bucco’s bill, S-1777, would allow gross income tax refunds to be credited against a taxpayer’s delinquent local property taxes in the same manner as is currently required for homestead property tax rebates.

Under current law, a homestead property tax rebate owed to a delinquent property taxpayer must be applied to any property tax owed by that individual before the individual is entitled to the remaining funds.

“New Jersey’s property taxes are among the highest in the nation, if not the highest, and the overall cost of living and running a business in this state has forced residents to move elsewhere,” added Bucco. “We have the ability right now to make significant changes to our tax policies to ensure that homeowners get the property tax relief they deserve. This legislation is an important first step toward that goal.”