Councilman Anibal Ramos Jr. Sponsors Short-Term Tax Amnesty Legislation

Wednesday, 16 April 2014 15:19 Local Talk News Editor

 

Legislation sponsored by Newark Councilman Anibal Ramos Jr. is set to be introduced in the City Council today to authorize a short-term tax amnesty and interest reduction program for delinquent taxpayers

The program would waive all interest and penalties on delinquent taxes for 2013 and prior years and municipal tax liens only for payments made between period May 1 and May 30.

For payments made between June 2 and June 30, the city would reduce the interest rate to 4 percent on the first $1,500 of delinquent taxes and 9 percent on the remaining balance.

"The purpose of this program is to help both our property owners and the city," Ramos said. "This will give our property owners an opportunity to pay off their delinquent taxes owed to the city without paying interest or fines. At the same time, the city will be able to boost its tax collection rate, which will help bring in much-needed revenues this year."

"The amnesty program will improve the City's already good tax collection rate," Ramos said, noting that bond rating agencies look at the tax collection rate as part of the Newark's overall financial health. "Not only can this money be used to offset tax increases, but it will result in lowering borrowing costs for Newark."

Last year, a tax amnesty initiated by Ramos resulted in an additional $36.7 million in tax revenue to the city, helping to offset City of Newark, according to figures released today by the city. During the period of last year's tax amnesty, the city collected $57,236,168 compared to $20,512,317 for the same period a year earlier, according to the City's Tax Collector.

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