This bill amends existing New Jersey tax law to permit gross income tax refunds to be applied against a taxpayer's delinquent local property taxes. Specifically, it allows the Department of the Treasury to use refunds, rebates, or credits from the New Jersey Gross Income Tax Act, as well as other related tax credits, to satisfy any outstanding debts owed by the taxpayer to state agencies, including child support obligations. The bill emphasizes that child support debts will take precedence over other types of indebtedness.

Additionally, the bill modifies the procedures for tax collectors and the state director regarding the withholding of homestead rebates or credits and gross income tax refunds due to property tax delinquencies. It mandates that tax collectors notify the state of delinquent taxpayers and ensures that any withheld amounts are credited against the taxpayer's delinquency. The bill also clarifies that the term "refund" includes any interest on overpayments, ensuring comprehensive coverage of tax refunds in relation to property tax delinquencies. The act is set to take effect on July 1 of the year following its enactment.

Statutes affected:
Introduced: 54A:9-8.1, 54:4-8.64