Businesses that successfully appeal their property tax assessments could be forced to wait years for their full repayments, thanks to legislation that cleared both the Senate and Assembly on Thursday.
NJBIA opposes the bill, A-2004 (Karabinchak, Mazzeo, Pinkin, Coughlin, Diegnan), which would require municipalities to repay nonresidential tax appeal refunds in annual installments over three years instead of 60 days.
“These changes could create a situation where it benefits a town to over-assess a nonresidential property taxpayer, knowing they have additional time to pay back the overpayment,” said NJBIA Vice President of Government Affairs Andrew Musick. “In short, this bill would make it more difficult to operate a business in the state.”
Under current law, a municipality is required to refund all excess property tax collections for both residential and nonresidential properties within 60 days of a successful property tax appeal, along with 5% interest. This bill applies the extended repayment period of three years to all appeals over $100,000, for nonresidential property taxpayers only.
“This change would allow municipalities to treat residential and nonresidential tax appeals differently,” Musick said. “Traditionally, commercial and residential property taxpayers have always been treated the same, and we feel the uniformity should remain.
“Furthermore, the additional delay would come on top of a tax appeals process that can be long and tedious in its own right,” Musick added. “In some cases, the appeals process can take years. Forcing them to wait this much longer to recoup their overpayments is neither fair nor reasonable.”
Constant bull chit by the domocrats. I wanna see businesses not pay the education portion of their real estate taxes as businesses do not send any kids to school.
It’s ironic how government expects its property tax receipts to be paid timely, or pay penalties & a high interest rate; while their side of the ledger would have 3 years to pay back refunds, at a meager interest rate, for overcharging.
NJ Democrats rape property owners with high taxes, argue about adding a millionaire’s tax to build a reserve fund, and want to basically borrow tax overcharges, all in compliment to state’s mismanagement of its financial affairs.
Jim, many businesses and non-businesses do not send children to school. I do not mind sharing in such, but it is disgusting the waste which is going on in this system.