N.J. Admin. Code § 5:30-18.5

Current through Register Vol. 56, No. 19, October 7, 2024

Section 5:30-18.5 - Percentage of donation that may be credited toward property taxes

(a) Ninety percent of an individual charitable contribution is creditable toward a donor's property tax obligation; however, the local unit shall permit donors the alternate option of having their individual charitable contributions creditable towards 15 percent of the donor's property tax obligation. If this calculation results in a repeating decimal number, the creditable portion shall be rounded up to the nearest cent. The Director may promulgate another alternate percentage through a Local Finance Notice.

(b) A municipal or county charitable fund shall utilize the remaining non-creditable balance of the donation, and all other donations not transferred to a spillover fund, for the specific purpose (s) of the charitable fund and for the cost of administering the fund. The non-creditable portion utilized for a charitable fund's specific purpose shall be either: recorded as a special item of revenue pursuant to N.J.S.A. 40A:4-87 and transferred into the general fund dedicated to the charitable fund's specific purpose(s) or brought into the following year's budget as revenue for the specific purpose, which shall be spent on the specific purpose in that budget year and not permitted to lapse into surplus. The non-creditable portion utilized for a charitable fund's administrative costs shall be recorded as Municipal Revenue Not Anticipated (MRNA), except that in subsequent years, historical use can be relied upon to record such revenue as miscellaneous revenue.

(c) The municipality may charge a county or school district an administrative fee to defray administrative expenses attributable to the tax collector's office and municipal finance officer's office as a result of applying property tax credits associated with the county or school district's charitable fund or funds. This administrative fee shall be set by ordinance and shall not be greater than two percent of the donation creditable to an annual property tax bill or quarterly installment thereof, as applicable. The county or school district shall pay any administrative fee charged to it by a municipality from the non-creditable portion of the donation.

N.J. Admin. Code § 5:30-18.5

Adopted by 50 N.J.R. 2247(a), effective 9/21/2018

Amended by 51 N.J.R. 828(a), effective 4/30/2019