Brick's Property Tax Grace Period Intact After Governor's Order

BRICK, NJ — Brick Township residents will get a little breathing room on their property tax payments, after Gov. Phil Murphy issued an executive order to permit towns to extend the grace period on second-quarter tax payments.

Murphy's executive order came a day after an outcry after state officials told tax collectors in Brick and across New Jersey that they couldn't extend the grace period, because it's written into the state statutes on property taxes.

State law sets the property tax payment dates as Feb. 1, May 1, Aug. 1, and Nov. 1, and allows towns to offer a 10-day grace period for late payments. After the 10 days, towns can charge interest on the late payments, and the interest collected goes into the towns' coffers.

Residents across Brick have been affected by business closures and hundreds are without jobs and as part of statewide efforts to slow the growth of the coronavirus. Severe problems with the state's unemployment system have left thousands across the state without a paycheck for as much as six weeks.

"All we were doing was giving people – many of whom are not earning a paycheck right now – more time to pay their quarterly taxes without worrying about penalties," Brick Township Mayor John G. Ducey said Monday.

On Tuesday, Murphy agreed, and announced the executive order.

"Allowing municipalities the option of extending the grace period for May property tax payments is the right thing to do as many New Jerseyans are impacted financially as a result of this crisis," Murphy said. "Leaders of towns and cities across the state have been trying to find ways to lessen the blow on local residents, and with this action, they are empowered to provide relief to homeowners as we continue to do everything possible to fight this pandemic."

Ducey, at Tuesday's Township Council meeting, noted that the situation had caused stress for township residents who were faced with having to pay that bill by May 10, instead of May 31.

"Anyone over the last 24 hours, I apologize for that stress being on you," Ducey said.

The council on April 14 had initially approved a resolution to extend the grace period based on the state's actions in the wake of Superstorm Sandy, when then-Gov. Chris Christie issued an executive order extending the grace period, and in 2017, after federal employees were furloughed during the federal budget battles.

"The state sent no guidance, nor provided any direction, despite a constant stream of calls and requests for clarification" for a month before Brick made its decsion, township Business Administrator Joanne Bergin said. "The state sat silent and let towns proceed based on our best judgment, common sense and past practice."

"Needless to say, when the state told us that the grace period was not allowed, we were disappointed and quite frankly, angry," Ducey said. "We appreciate Governor Murphy listening to us and permitting us to help our residents."

As per the council’s resolution from the April 14, 2020 meeting, the interest rate on late payments made until May 31, 2020 will be zero percent. Payments made on June 1 or later will be subject to the statutory interest rates retroactive to May 1, as mandated by law.

Have a news tip? Email karen.wall@patch.com Follow Brick Patch on Facebook.