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 modifies Section 1 of P.L.1981, c.239 (C.54A:9-8.1) to include provisions that allow the Department of the Treasury to apply tax refunds, homestead rebates, or credits to satisfy any outstanding debts owed by the taxpayer to state agencies, including child support obligations. The bill also clarifies that the term "refund of taxes pursuant to the 'New Jersey Gross Income Tax Act'" includes any interest on overpayments.

Additionally, the bill updates Section 8 of P.L.1990, c.61 (C.54:4-8.64) to ensure that no homestead rebate or gross income tax refund will be issued to property owners with outstanding tax delinquencies. It mandates that the tax collector must credit any withheld rebates or refunds directly against the taxpayer's delinquency. The bill aims to streamline the process of addressing tax debts by allowing refunds to be used to offset delinquent property taxes, thereby enhancing tax compliance and revenue collection. 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