Howell Property Tax Grace Period Measure To Go Before Council

HOWELL, NJ — The Howell Township Council is expected to consider a resolution on Tuesday to extend the grace period on second-quarter property tax payments.

The extension has been made possible by an executive order issued Tuesday by Gov. Phil Murphy to allow towns to lengthen the grace period, a move many towns have considered because of the financial impact of the coronavirus outbreak.

Residents across Howell 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.

Don't miss local and New Jersey announcements about coronavirus precautions. Sign up for Patch alerts and daily newsletters.

"The Howell Township Mayor and Council have always been interested in extending the tax deadline," Township Manager Brian Geoghegan said in an email Wednesday morning. "Up until yesterday’s EO, it would have been illegal for the township to take such action."

State law sets the property tax payment dates as Feb. 1, May 1, Aug. 1, and Nov. 1, and allows towns to offer a maximum of 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.

"We have begun preparing a resolution authorizing the extension of this quarter’s grace period from May 11, 2020 to June 1, 2020," Geoghegan said. "The feedback I’ve received from each elected official is that it will pass with overwhelming support." .

The council's next meeting is scheduled for May 5.

Murphy's executive order came a day after an outcry that resulted when state officials told tax collectors across New Jersey that they couldn't extend the grace period, because it's written into the state statutes on property taxes. Read more: NJ Coronavirus Updates: Here's What You Need To Know

Neighboring Brick Township had passed a resolution two weeks ago to extend the grace period; officials there said the decision was based on past practices in severe events, including following Superstorm Sandy.

Geoghegan, in a letter to Howell residents published on the township's website, said any resolution had to be approached with caution because of the potential for unintended consequences, such as giving large commercial taxpayers an incentive to not pay their property taxes, and the concern about the township being able to meet its obligation to send tax levy payments to the school districts and the county.

"Lowering the rate of interest does not defer" those payments, he said.

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