New Jersey Division of Local Government Services Local Finance Notice 2021-09

Municipal buildings throughout the State are closed or subject to public access restrictions due to COVID-19. This Notice explains recent updates to the Government Electronic Payment Acceptance Act.

Update to the Government Electronic Payment Acceptance Act

• The GEPPA allows payment of non-delinquent property taxes and other charges through electronic funds transfer or credit and debit cards.
• The provision allows local units to offer expanded payment options to individuals lacking bank accounts or credit cards. However, the service must transmit payments directly to a local unit’s financial institution, ensuring that these funds are protected by the Governmental Unit Deposit Protection Act.
• Moneygram, Western Union, and PayIt Gov are examples of services that transfer payments directly into a local unit’s financial institution.
• New Jersey municipal courts accept electronic and alternative payment methods for fees, costs, fines, penalties, service charges and other judicially imposed financial obligations. Processing fees are calculated based on a percentage of the transaction amount.

Acceptance of Municipal Payments by Designated Local Bank

• N.J.S.A 54:4-122.9 authorizes municipalities to contract with a local bank to serve as an “Official Tax Receiving Agency” for receiving current tax payments, current water and sewer rents, and other public monies.
• The bank must be an official depository of the municipality and be commonly used by residents of the municipality. Credit unions are not authorized to serve as official tax receiving agencies.
• N.J.A.C. 5:33-1.2 specifies procedures that the municipality must follow prior to designating a bank as an official tax receiving agency, as well as the type of notice each taxpayer must receive.
• Within three days of adopting a resolution, the municipal clerk must submit a certified copy of the resolution to the Division of Local Government Services. If the Division takes no action within 30 days, the resolution is deemed approved.
• The municipality must notify taxpayers by regular mail of any official tax receiving agency designation at least once annually, and display a notice on the municipal website.

Local Finance Notice 2021-09

Please follow the link below to read more about these items and guidance on how your local unit can implement them: https://www.nj.gov/dca/divisions/dlgs/lfns/21/2021-09.pdf

Contact Wielkotz & Company, LLC Today

For further information on Local Finance Notice 2021-09 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or sdw@w-cpa.com.