Manchester Amends Property Tax Payment Grace Period

MANCHESTER, NJ — Manchester Township residents will have until June 1 to pay their property taxes without penalty, after the township council amended the grace period.

Township officials originally set a two-month grace periodfor tax payments and gave residents an extra 45 days to pay their water and sewer bills because of the impacts of the coronavirus outbreak, which has forced thousands of businesses to close across the state and resulted in thousands of people becoming unemployed.

It turned out, however, that the extension Manchester and other towns granted was a violation of state statutes, according to information from the state Division of Local Government Services that was distributed to municipal tax collectors.

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On April 28, Gov. Phil Murphy issued an executive order allowing municipalities to extend their grace periods on property tax payments to June 1, giving homeowners under stress financially because of the crisis a little more time.

On Friday, the Manchester Township Council rescinded its resolutions and adopted a grace period for property taxes ending June 1.

The grace period for water and sewer bill payments was amended to the original date of May 15 for bills that were due April 15, as those were not addressed in Murphy's order.

"The state, in accordance with Executive Order 130, will not allow us to extend the grace period any longer than June 1st," township officials said in a news release. "We were hoping to provide additional relief to our residents, many of whom may have been adversely affected by the COVID-19 pandemic, but it is not permitted by state regulations."

Read more: NJ Coronavirus Updates: Here's What You Need To Know

For water and sewer bills, after May 15 interest will apply and will date back to the April 15 due date, with 8 percent interest on the first $1,500 of delinquent payment, and 18 percent interest on over $1,500 of delinquent payment.

For property taxes, interest will be charged and will date back to the May 1 due date if the payment is not received by the town by June 1.

"If the grace period should be extended further by the governor, township officials are willing to address the new extension at that time," the news release said. "The mayor and council are committed to providing our residents with latitude in dealing with the effects of the COVID-19 pandemic."

"The mayor and council are limited by strict state and federal guidelines in providing relief to taxpayers under the current state of emergency and will continue to seek every legal means of relief for our residents," officials said.

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