54:3-27.2 Refund of excess taxes; interest.
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/nj/title-54/chapter-3/54-3-27-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
2. Except as required in paragraph
(2)of subsection a. of section 2 of P.L.1983, c.137 (C.54:4-134), in the event that a taxpayer is successful in an appeal from an assessment on real property, the respective taxing district shall refund any excess taxes paid, together with interest thereon from the date of payment at a rate of five percent per annum or one percentage point above the prime rate assessed for each month or fraction thereof, compounded annually at the end of each year, from the date the tax originally was due or paid, whichever date is later, until the date of actual payment, whichever interest rate is lesser, less any amount of taxes, interest, and penalties, which may be applied against delinquencies pursuant to section 2 of P.L.1983, c.137 (C.54:4-134). In the case of nonresidential real property, a municipality may refund the amount owed to the taxpayer in substantially equal payment periods and substantially equal payment amounts within three years of the date of final judgment. A municipality may also, in the case of nonresidential real property, refund the amount owed to the taxpayer as a credit, including any interest that accumulates until the excess is fully returned, against the balance of property taxes that become due and payable on the parcel of nonresidential real property immediately following the county board of taxation's decision or the Tax Court judgment, as appropriate, but if the excess has not been fully refunded to the taxpayer in connection with the nonresidential real property after three years, then the remaining excess shall be immediately refunded. If the dollar amount of the refund due on nonresidential real property, however, does not exceed $100,000, the amount shall be repaid within 60 days of the final judgment. In the case of residential real property, the refund shall be paid within 60 days of the date of final judgment.
Nothing in this section shall be construed to preclude Local Finance Board approval for any municipality that has ended the previous budget year with a deficit in operations caused, whether in whole or in part, by obligations created from tax appeals to issue notes pursuant to section 3 of P.L.2011, c.224 (C.40A:4-89).
L.1975, c.361, s.2; amended 1977, c.357, s.3; 1983, c.137, s.1; 2012, c.19, s.1; 2019, c.230, s.1; 2021, c.432, s.1.