By MADDY VITALE
City Council passed a resolution on Tuesday that extends the grace period to pay quarterly taxes to June 1 from May 10, in an effort to help property owners who are struggling in the wake of the coronavirus pandemic.
Before outlining the resolution for Council during the special meeting, Chief Financial Officer Frank Donato explained during the meeting, which was held remotely, what makes the resolution different from the one adopted April 23.
In the April 23 resolution, Council took steps to help residents by approving a cut in the interest rate on delinquent taxes from 18 percent to 8 percent above $1,500.
“They each provide different layers of relief,” he said of the unforeseen time.
The lower interest rate for Ocean City property owners who are late with their payments is in effect for the second quarter taxes due on May 1 and the third quarter payments, which will be due Aug. 1.
It will not retroactive for delinquent taxes for previous quarters.
As New Jersey residents continue to lose their jobs by the tens of thousands because of the COVID-19 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.
Donato spoke on behalf of the city, answering some concerns from the public about the resolution approved on Tuesday.
The Council, he said, could not do any more by law than it had done until April 28, when Gov. Phil Murphy signed an executive order allowing towns to extend the grace period for payment of taxes.
“Despite the opinion of FIT, (a local group Fairness in Taxes), and despite well-intended resolutions by neighboring communities, local municipalities had zero authority to adjust tax pay periods prior to the April 28 executive order,” Donato noted.
Councilman Bob Barr asked for some clarification for the public about the April 23 resolution.
“There was some sentiment by some that this resolution or ordinance did not help everyone — only those with higher property values, and my understanding is that is not the case,” Barr said.
Donato followed up, “You asked if the April 23 resolution provided relief for taxpayers with assessments under $600,000 and the answer is yes.”
The next City Council meeting is scheduled for May 14 and will also be via teleconference.
