New Jersey S 3518: Limits certain provisions in and enforceability of restrictive covenants.

Bill Text

S3518 

SENATE, No. 3518 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Senator� ANTHONY M. BUCCO

District 25 (Morris and Passaic)

SYNOPSIS

���� Allows gross income tax refunds to be credited 
against taxpayer's delinquent local property taxes.� 

CURRENT VERSION OF TEXT 

���� As introduced.

�� 

An Act allowing gross income tax refunds to be credited 
against a taxpayer's delinquent local property taxes, amending section 1 of 
P.L.1981, c.239 (C.54A:9-8.1) and section 8 of P.L.1990, c.61 (C.54:4-8.64).

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� Section 1 of P.L.1981, c.239 
(C.54A:9-8.1) is amended to read as follows:

���� 1.� a.� Whenever any taxpayer 
or resident shall be entitled to any refund of taxes pursuant to the "New 
Jersey Gross Income Tax Act" (N.J.S.54A:1-1 et seq.), including an earned 
income tax credit provided as a refund pursuant to P.L.2000, c.80 (C.54A:4-6 et 
al.), or whenever any individual is eligible to receive a rebate pursuant to 
section 3 of P.L.2020, c.94 (C.54A:9-30), or a homestead rebate or credit 
pursuant to P.L.1990, c.61 (C.54:4-8.57 et al.), P.L.1999, c.63 (C.54:4-8.58a 
et al.), P.L.2004, c.40 or P.L.2007, c.62 (C.18A:7F-37 et al.), and if the refund, 
rebate, or credit is not required to be paid over to the municipal tax 
collector under the provisions of section 8 of P.L.1990, c.61 (C.54:4-8.64), 
and at the same time the taxpayer or resident shall be indebted to any agency 
or institution of State Government, to the Victims of Crime Compensation Board 
for the portion of an assessment ordered pursuant to section 2 of P.L.1979, 
c.396 (C.2C:43-3.1) for deposit in the Victims of Crime Compensation Board 
Account or restitution ordered to be paid to the board pursuant to 
N.J.S.2C:44-2 for deposit in the Victims of Crime Compensation Board Account, 
or for child support under Title IV-A, Title IV-D, or Title IV-E of the federal 
Social Security Act (42 U.S.C. s.601 et seq.), or other indebtedness in 
accordance with section 1 of P.L.1995, c.290 (C.2A:17-56.11b) the Department of 
the Treasury shall apply or cause to be applied the refund, homestead rebate or 
credit, or all, or so much of any or all as shall be necessary, to satisfy the 
indebtedness.� Child support indebtedness shall take precedence over all other 
indebtedness.� The Department of the Treasury shall retain a percentage of the 
proceeds of any collection setoff as shall be necessary to provide for any 
expenses of the collection effort. 

���� b.��� A State department or 
agency which is owed a debt shall notify the Department of the Treasury of the 
existence of the debt and shall request that the Department of the Treasury 
execute a setoff as provided for in this section.

���� c.���� As used in this 
section, "refund of taxes pursuant to the "New Jersey Gross Income 
Tax Act" (N.J.S.54A:1-1 et seq.)" or"refund" shall include 
any interest allowed on a refund of an overpayment pursuant to subsection f. of 
N.J.S.54A:9-7.

(cf: P.L.2020, c.94, s.4)

���� 2.��� Section 8 of P.L.1990, 
c.61 (C.54:4-8.64) is amended to read as follows:

���� 8.��� a.� The tax collector of 
each municipality shall, on or before April 1 of each year, furnish the 
director with a list of property taxpayers in the district delinquent for taxes 
due and payable for the year immediately preceding and the amounts of such delinquencies.� 
The collector shall report on such list the name, lot and block number on the 
property tax duplicate as may be applicable, and the address of each owner to 
whom a delinquency is attributable together with the amount of such delinquency 
so identified.� No homestead rebate payment under this act or refund of 
taxes pursuant to the "New Jersey Gross Income Tax Act," 
N.J.S.54A:1-1 et seq., shall be made to a property owner, and no homestead 
credit shall be applied as provided in subsection b. of section 7 of P.L.1990, 
c.61 (C.54:4-8.63), while that property owner's delinquency remains; provided 
however that for the purposes of this act, for an assessment on a property 
which is on appeal and for which the statutory percentage of the tax as 
provided in R.S.54:3-27 has been paid, the taxes assessed on that property 
shall not be regarded as delinquent.

���� b.��� If the director receives 
the list as provided for in subsection a. of this section, and the director 
determines that a property tax delinquency remains for the preceding tax year 
on April 1, the director shall ascertain the amount of the homestead rebate or 
credit or refund of taxes pursuant to N.J.S.54A:1-1 et seq., required to 
be withheld because of such delinquency in each municipality in the State, and 
shall certify such amounts to the State Treasurer as soon thereafter as may be 
practicable.

���� c.���� On or before November 
15, the director shall notify each homestead rebate or credit claimant whose 
rebate or cred