New Jersey § 40a:4-41

§ 40a:4-41.

a. For the purpose of determining the amount of the appropriation for “reserve for

uncollected taxes” required to be included in each annual budget where less than 100%

of current tax collections may be and are anticipated, anticipated cash receipts shall

be as set forth in the budget of the current year, and in accordance with the limitations

of statute for anticipated revenue from, surplus appropriated, miscellaneous revenues

and receipts from delinquent taxes. b. Receipts from the collection of taxes levied or to be levied in the municipality,

or in the case of a county for general county purposes and payable in the fiscal year

shall be anticipated in an amount which is not in excess of the percentage of taxes

levied and payable during the next preceding fiscal year which was received in cash

by the last day of the preceding fiscal year. c. (1) For any municipality in which tax appeal judgments have been awarded to property

owners from action of the county tax board pursuant to R.S.54:3-21 et seq. , or the State tax court pursuant to R.S.54:48-1 et seq. in the preceding fiscal year, the governing body of the municipality may elect to

determine the reserve for uncollected taxes by using the average of the percentages

of taxes levied which were received in cash by the last day of each of the three preceding

fiscal years. Election of this choice shall be made by resolution, approved by a majority vote

of the full membership of the governing body prior to the introduction of the annual

budget pursuant to N.J.S.40A:4-5 . (2) If tax appeal judgments of the county tax board pursuant to R.S.54:3-21 et seq. , or the State tax court pursuant to R.S.54:48-1 et seq. , result in tax reductions for the previous fiscal year , the governing body of the municipality may elect to calculate the current year reserve

for uncollected taxes by reducing the certified tax levy of the prior year by the

amount of the tax levy adjustments resulting from those judgments. Election of this choice shall be made by resolution, approved by a majority vote

of the full membership of the governing body prior to the introduction of the annual

budget pursuant to N.J.S.40A:4-5 . d. The director may promulgate rules and regulations to permit a three-year average

to be used to determine the amount required for the reserve for uncollected taxes

for municipalities to which subsection c. of this section is not applicable.