Allows gross income tax refunds to be credited against taxpayer's delinquent local property taxes.

A4607

ASSEMBLY, No. 4607

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Sponsored by:

Assemblywoman� DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Allows gross income tax refunds to be credited
against taxpayer's delinquent local property taxes.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

allowing gross income tax refunds to be credited
against a taxpayer's delinquent local property taxes, amending section 1 of
P.L.1981, c.239 (C.54A:9-8.1) and section 8 of P.L.1990, c.61 (C.54:4-8.64).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 1 of P.L.1981, c.239
(C.54A:9-8.1) is amended to read as follows:

���� 1.� a.� Whenever any taxpayer
or resident shall be entitled to any refund of taxes pursuant to the "New
Jersey Gross Income Tax Act" (N.J.S.54A:1-1 et seq.), including an earned
income tax credit provided as a refund pursuant to P.L.2000, c.80 (C.54A:4-6 et
al.), or whenever any individual is eligible to receive a rebate pursuant to
section 3 of P.L.2020, c.94 (C.54A:9-30), or a homestead rebate or credit
pursuant to P.L.1990, c.61 (C.54:4-8.57 et al.), P.L.1999, c.63 (C.54:4-8.58a
et al.), P.L.2004, c.40 or P.L.2007, c.62 (C.18A:7F-37 et al.), and if the
refund,

rebate
,
or credit is not required to be paid over to the municipal tax
collector under the provisions of section 8 of P.L.1990, c.61 (C.54:4-8.64),
and at the same time the taxpayer or resident shall be indebted to any agency
or institution of State Government, to the Victims of Crime Compensation Board
for the portion of an assessment ordered pursuant to section 2 of P.L.1979,
c.396 (C.2C:43-3.1) for deposit in the Victims of Crime Compensation Board
Account or restitution ordered to be paid to the board pursuant to
N.J.S.2C:44-2 for deposit in the Victims of Crime Compensation Board Account,
or for child support under Title IV-A, Title IV-D, or Title IV-E of the federal
Social Security Act (42 U.S.C. s.601 et seq.), or other indebtedness in
accordance with section 1 of P.L.1995, c.290 (C.2A:17-56.11b) the Department of
the Treasury shall apply or cause to be applied the refund, homestead rebate or
credit, or all, or so much of any or all as shall be necessary, to satisfy the
indebtedness.� Child support indebtedness shall take precedence over all other
indebtedness.� The Department of the Treasury shall retain a percentage of the
proceeds of any collection setoff as shall be necessary to provide for any
expenses of the collection effort.

���� b.��� A State department or
agency which is owed a debt shall notify the Department of the Treasury of the
existence of the debt and shall request that the Department of the Treasury
execute a setoff as provided for in this section.

����
c.���� As used in this
section, "refund of taxes pursuant to the "New Jersey Gross Income
Tax Act" (N.J.S.54A:1-1 et seq.)" or"refund" shall include
any interest allowed on a refund of an overpayment pursuant to subsection f. of
N.J.S.54A:9-7.

(cf: P.L.2020, c.94, s.4)

���� 2.��� Section 8 of P.L.1990,
c.61 (C.54:4-8.64) is amended to read as follows:

���� 8.��� a.� The tax collector of
each municipality shall, on or before April 1 of each year, furnish the
director with a list of property taxpayers in the district delinquent for taxes
due and payable for the year immediately preceding and the amounts of such delinquencies.�
The collector shall report on such list the name, lot and block number on the
property tax duplicate as may be applicable, and the address of each owner to
whom a delinquency is attributable together with the amount of such delinquency
so identified.� No homestead rebate payment under this act
or refund of
taxes pursuant to the "New Jersey Gross Income Tax Act,"
N.J.S.54A:1-1 et seq.,
shall be made to a property owner, and no homestead
credit shall be applied as provided in subsection b. of section 7 of P.L.1990,
c.61 (C.54:4-8.63), while that property owner's delinquency remains; provided
however that for the purposes of this act, for an assessment on a property
which is on appeal and for which the statutory percentage of the tax as
provided in R.S.54:3-27 has been paid, the taxes assessed on that property
shall not be regarded as delinquent.

���� b.��� If the director receives
the list as provided for in subsection a. of this section, and the director
determines that a property tax delinquency remains for the preceding tax year
on April 1, the director shall ascertain the amount of the homestead rebate or
credit
or refund of taxes pursuant to N.J.S.54A:1-1 et seq.,
required to
be withheld because of such delinquency in each municipality in the State, and
shall certify such amounts to the State Treasurer as soon thereafter as may be
practicable.

���� c.���� On or before November
15, the director shall notify each homestead rebate or credit claimant whose
rebate or credit has been withheld
, or gross income tax taxpayer whose
refund has been withheld,
because of delinquency that the amount of the
rebate or credit
or refund
to which the claimant
or gross income
taxpayer
otherwise would have been entitled has been sent to the tax
collector in the municipality to be credited against the claimant's
delinquency.

���� d.��� Upon certification by
the director as to the amount of homestead rebates or credits
or refund of
taxes pursuant to N.J.S.54A:1-1 et seq.,
required to be withheld because of
delinquency in the several municipalities, the State Treasurer upon the warrant
of the Director of the Division of Budget and Accounting, shall pay such amount
on or before October 30 to the tax collector in each municipality.

���� e.���� The tax collector in
each municipality shall credit the tax delinquency of each property taxpayer
who appears on the delinquency list set forth in subsection a. of this section
in the amount that otherwise would have been returned to the property taxpayer
as a homestead rebate or credit
or a refund of taxes pursuant to
N.J.S.54A:1-1 et seq
.� In the event that the amount so credited by the tax
collector exceeds the amount of delinquency, the tax collector may return the
difference to the taxpayer or credit such amount to the subsequent property tax
bill.

���� f.���� In the case of
delinquency in the payment of property taxes by a cooperative, mutual housing
corporation or continuing care retirement community, a homestead rebate that
may be due an individual resident shall be paid by the State Treasurer to the
tax collector of the municipality.� The tax collector shall credit the
cooperative, mutual housing corporation or continuing care retirement community
with such payment and the cooperative, mutual housing corporation or continuing
care retirement community shall, in turn, credit the individual unit owner to
the extent of the rebate and notify the applicant of the amount to be credited.

���� g.��� If a tax collector fails
to comply with the provisions of subsection a. of this section requiring the
tax collector to furnish the director with a list, on or before April 1 of each
year, of property taxpayers in the district delinquent for taxes due and
payable for the year immediately preceding and the amounts of such
delinquencies, the director shall
refund any taxes pursuant to N.J.S.54A:1-1
et seq., and
either pay the homestead rebate directly to the delinquent
applicant rather than to the tax collector of the municipality as set forth in
subsection d. of this section or provide a credit for the applicant under this
act.

���� h.��� All provisions of this
section shall apply to NJ SAVER rebate applications filed for and paid as
homestead rebates for tax year 2003.

����
i.���� As used in this
section, "refund of taxes pursuant to N.J.S.54A:1-1 et seq.," or
"refund" shall include any interest allowed on a refund of an
overpayment pursuant to subsection f. of N.J.S.54A:9-7.

(cf:� P.L.2007, c.62, s.26)

���� 3.��� This act shall take
effect on July 1 of the year next following the date of enactment.

STATEMENT

����� This bill allows gross income tax refunds to be
credited against a taxpayer's delinquent local property taxes in the same
manner as is currently allowed for homestead property tax rebates and credits
claimed by delinquent property tax taxpayers.�