Grace period for municipal taxes to be extended
By: Emily Holody
JAMESBURG Jamesburg’s municipal budget may not be adopted until the end of the summer, because it is still waiting for the state to issue special aid figures.
The state Department of Community Affairs said Monday that it does not have a timeline for issuing discretionary aid to municipalities, but that the figures should be issued sometime during the summer, said spokesman Chris Donnelly. As a result, tax bills will be going out later than expected, and the grace period will be extended.
The Borough Council has postponed adopting its $5.28 million municipal budget until it hears from the state regarding discretionary aid. The borough asked for $335,000 in discretionary aid a special aid category distributed to towns with limited tax bases whose property tax increases are considered a hardship.
If the borough were to receive the full amount of state aid that was requested, a proposed 11.3 percent tax-rate hike would be eliminated.
If adopted without the aid, the budget would increase the tax levy or the total amount to be raised by taxes by $352,923, or 13.33 percent, to $3 million and increase the municipal tax rate 14 cents to $1.243 per $100 of assessed valuation.
At that rate, the owner of a house assessed at the borough average of $124,000 would pay $1,541 in municipal taxes, $173 more than last year.
The delayed budget will delay the mailing of third-quarter tax bills and could mean that taxpayers will be granted a grace period meant to take into account the delay.
"You’re probably talking three weeks after the announcement," said Denise Jawidzik, business administrator.
Normally, third-quarter taxes are due Aug. 1, but that deadline would be pushed back. However, delinquent taxpayers would have to pay interest back to the official Aug. 1 deadline if they do not make payments by the new date.
The interest rate on late tax payments is 8 percent for the first $1,500 in taxes, and 18 percent for the remainder due.

