New Jersey § 54:3-27

§ 54:3-27.

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 ).