2nd Quarter Tax Grace Period - Statement to the Public
Readington Township’s second payment of property taxes for 2020 was due on May 1st. The grace period for tax payments will be until May 11th. The Township Committee has decided not to extend the grace period to June 1st. This was a difficult decision and probably an unpopular one.
- The Township collects taxes for Hunterdon Central High School, Readington School system, Hunterdon County Taxes, Hunterdon County Open Space Tax and the Hunterdon County Library.
- The taxes collected are for salaries, medical benefits, pensions and operating budgets for each of these organizations. If the Township does not issue payment to these organizations, then their employees will not get paid.
- The portion of taxes collected that is dedicated to running Readington Township is approximately 20%. (40% goes to Readington Schools, 25% to HCRS and 15% to Hunterdon County)
- This month Readington Township will issue payment of over $9 million dollars to these organizations.
- The Township does not carry the surplus cash to make the payments to these organizations without the collection of quarterly taxes and would be required to borrow the money through Tax Anticipation Notes to make these payments. Each year the Township carries approximately $1 million dollars in reserve funds.
The decision made by Governor Murphy to offer a state grace period of 30 days, while well intentioned, is not practical for municipalities. The Governor offered no mechanisms to allow municipalities to extend grace periods to collect property taxes and still meet their financial obligations.
These are difficult times and the Township’s goals are to protect our residents, provide recreation opportunities, provide municipal services and meet our legal requirements. We are actively working to reduce expenses and maintain our essential services for all Readington residents.
Please continue to follow safe distancing guidelines. Limit your travel into public places. Wear a facial mask when in public and remain safe at home as much as possible.
Mayor Jonathan Heller and Township Committee