TRENTON – Towns and cities will catch a break on commercial tax appeal refunds if S2762 continues to gain steam. Today, it passed first reading in the state Senate, 25-12, although it has yet to get a committee hearing in the Assembly.
“It gives municipalities a cushion,” said Majority Leader Barbara Buono, (D-18), of Metuchen.
The bill allows municipalities to string out commercial or industrial tax appeals for tax year 2010 or 2011 over three fiscal years. Interest is still calculated at a 5 percent annual rate. Currently, the towns are required to pay excess taxes in full within 60 days of the final judgment.