New Jersey Assembly Bill A2770

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires municipality to return to taxpayer property taxes paid in error due to assessor's or owner's mistake.

Impact

If enacted, A2770 will revise existing statutes regarding property tax administration, particularly R.S.54:4-54, which governs the handling of errors in the assessment process. Under the new stipulations, municipalities would be obliged to issue refunds without interest for erroneous tax payments when a property owner mistakenly assumes responsibility for taxes owed on another's property or when assessments are incorrectly recorded. The proposed changes underscore the importance of accurate tax assessments and the duty of municipalities to rectify mistakes promptly.

Summary

Bill A2770 proposes that municipalities in New Jersey must refund property taxes that were overpaid due to an error in assessment by either the taxing authority or the property owner. This legislation shifts the existing permissive framework, where municipalities could choose to refund overpayments, to a mandatory one, requiring local governments to return excess payments made by property owners under specified conditions. The intended effect is to streamline the process of correcting tax records and ensuring that taxpayers are more protected from errors regarding their property assessments.

Contention

There may be points of contention surrounding this bill, particularly regarding how municipalities will manage the financial implications of mandatory refunds. Critics could express concern that the bill imposes unfunded mandates on local governments, potentially straining budgets that are already tight. Additionally, debates may arise about the adequacy of notification processes and the fairness of refunds, especially when determining responsibility for overpayments and the timeframe for issuing refunds.