In NJ, late tax bills slow property tax collections

    Towns across New Jersey could face short and long term cash crunches due to the last minute nature of this year’s state budget agreement. The state Department of Community Affairs estimates 98 percent of towns will send out their tax bills late.

    Towns across New Jersey could face short and long term cash crunches due to the last minute nature of this year’s state budget agreement.

    The state Department of Community Affairs estimates 98% of towns will send out their tax bills late.

    New Jersey passed its budget just before the July 1 deadline. That means the drawn out process of certifying and awarding state aid to municipalities has taken the entire month of July. That money informs how much townships charge in property taxes, which delayed sending tax bills; so now payments also will come late.

    New Jersey League of Municipalities Executive Director Bill Dressel says towns will need bridge loans to make payroll.

    Dressel:
    You’re literally looking for temporary financing in order to bridge that time where you sent the bills out and you’re waiting for the monies to come back in so you can pay off the bank, and then there’s an additional finance charge that you’ve got to pay the bank.

    Because of tight finances, Dressel says many towns have already taken the extreme step of laying off police officers, firefighters, and emergency medical technicians.

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