Legislation sponsored by Senator Joe Pennacchio that would ease the burden on municipalities faced with refunding excess property taxes was endorsed by the Senate and now moves to the Governor’s desk for consideration.
Legislation sponsored by Sen. Joe Pennacchio that would ease the burden on municipalities faced with refunding excess property taxes was endorsed by the Senate and now moves to the Governor’s desk for consideration. (Pixabay)
Pennacchio’s bill, A-862/S-926, permits towns to issue a property tax credit to homeowners who successfully appeal their assessments rather than issuing cash payments that can create financial pressures on cash-strapped towns.
“Currently, municipalities must refund the money within 60 days of the county board of taxation’s decision,” said Pennacchio (R-26). “Due to revenue constraints, that isn’t enough time to free up the money for many towns.
“Local governments that get hit with a barrage of successful appeals can find themselves in a bind,” Pennacchio noted. “Allowing them to issue credits against property taxes due the following year makes it easier for governments to manage financial obligations.”
The property tax credits issued under the bill, which would include any interest accrued until the total refund is satisfied, would only be issued for up to three consecutive years, after which any outstanding balance owed to the taxpayer would be paid in full immediately.