Ocean City to Give Relief on Late Tax Payments During Pandemic

DWitt

By DONALD WITTKOWSKI Ocean City will be providing some financial relief during the coronavirus pandemic for residents and other property owners who may not be able to pay their local property taxes on time. City Council approved a resolution Thursday night that cuts the interest rate for delinquent property taxes during the second and third quarters of 2020. City Solicitor Dorothy McCrosson explained that the interest rate for late tax payments will now be 8 percent across the board. Previously, the city has charged an 8 percent interest rate for the first $1,500 in late tax payments and an 18 percent rate for any delinquent payments above $1,500. The uniform 8 percent rate approved Thursday is intended to give residents and other property owners some relief if they struggle to pay their taxes, McCrosson said. The lower interest rate will be in effect for the second quarter taxes due on May 1 and the third quarter payments due Aug. 1. It will not be retroactive for delinquent taxes for previous quarters, McCrosson said. “We want to provide relief, but we don’t want to provide a disincentive for people to pay their taxes,” she told City Council. As New Jersey residents continue to lose their jobs by the tens of thousands because of the pandemic shutdown, communities across the state are looking for ways to help them pay their property taxes to prevent the flow of critical tax revenue from being disrupted. Property owners are given a 10-day grace period to pay their taxes without getting hit with a penalty in the form of interest charges. Ocean City officials discussed the possibility of extending the grace period to 30 days to provide further relief to taxpayers during the pandemic, but ruled against it because there is no state law that would allow it, McCrosson noted. “We concluded that is not permitted by statute,” she said. Meanwhile, Thursday night’s City Council session was the second meeting in a row that was conducted by teleconference to comply with Gov. Phil Murphy’s social distancing requirements during the pandemic. Members of the public were not allowed to attend the meeting at City Hall in person, but were able to participate via teleconference. In opening remarks, Mayor Jay Gillian said city officials have been in close contact with Cape May County representatives, mayors from neighboring towns, representatives of Shore Medical Center and others to begin the planning for the safe reopening of the Jersey Shore. Gillian repeatedly stressed that no one is looking to restart the shore’s economy prematurely and without proper safeguards in place to protect the public. “We just have to be very, very responsible,” he said. Members of City Council agreed with the mayor that Ocean City must continue to follow the guidance of President Trump, the governor and healthcare professionals, including those at Shore Medical Center in neighboring Somers Point. “I want to make sure we do everything in our power to maintain social distancing,” Councilman Keith Hartzell said. In the meantime, Hartzell and other Council members stressed the importance of supporting local businesses by shopping online during the shutdown. They also said the city should work closely with the business community to develop plans to help restaurants, retail shops and other businesses after the coronavirus restrictions are lifted. “Everybody’s doing their research on how to open their businesses safely,” Councilwoman Karen Bergman said. Noting that local restaurants “are taking a beating,” Hartzell suggested that the city should explore the possibility of giving them more room on the sidewalks for outdoor dining to help them draw customers after the pandemic. Hartzell said restaurants will probably reduce the amount of dining space inside to provide extra room for social distancing. In another suggestion to help businesses, Hartzell mentioned the possibility of allowing retail shops on the Boardwalk to open up their rear entrances for customers as a way to create more social distancing. Gillian praised Hartzell for his suggestions, but also noted that myriad ideas are being kicked around by a county task force, as well as health professionals, to help jump-start the business community while also safely reopening the shore’s economy. “We’re going to do it right,” Gillian assured.