2023 New Jersey Revised Statutes
Title 54 - Taxation
Section 54:4-66.8 - Permitted donations; use of funds.
54:4-66.8 Permitted donations; use of funds.
3. a. Any person or entity may donate to a charitable fund, regardless of property ownership or location of residence by directing the payment to the fund administrator of a charitable fund of a local unit. A donation to a charitable fund may be made on behalf of a local property owner by directing the payment to the fund administrator of a charitable fund of a local unit in which the local property owner resides.
b. If a local property owner makes a donation to a local charitable fund that is eligible for a property tax credit, that property owner shall indicate at the time of the donation the specific parcel of property to which the donation shall apply in order for such credit to issue. A donation may be credited to more than one real property in a manner indicated by the local property owner. If credited to more than one real property, the local property owner shall indicate the amount of the donation intended to be applied to each real property.
c. Following receipt of a local charitable donation, the fund administrator shall:
(1) issue a receipt to the donor, confirming the amount of the donation and the real property associated with the donation;
(2) notify the donor that, in the event that the annual credit-eligible donation cap has been reached, the donation is being held by the local unit in escrow, awaiting the donor's direction. Following such notification, the fund administrator shall provide the donor with 60 days, or a lesser amount of time if so specified by the director, to direct the fund administrator to allocate the donation to another charitable fund established by the local unit, or to rescind the donation, provided, however, that the donor's failure to provide direction within the applicable timeframe shall result in the transfer of the donation funds to the spillover fund or, if no spillover fund has been established, in the return of the donation funds to the donor; and
(3) notify the municipal tax collector, and chief financial officer or business administrator of the local unit, within five business days of the amount of the donation and the amount of the credit made available as a result of the donation. Thereafter, the municipal tax collector shall notify the donor of the amount of the available local property tax credit.
d. Charitable fund donations shall be used for the following purposes:
(1) for purposes as designated by the local unit pursuant to section 2 of P.L.2018, c.11 (C.54:4-66.7);
(2) the payment of any administrative fees of the municipality that may be required by the municipality pursuant to subsection g. of section 4 of P.L.2018, c.11 (C.54:4-66.9); and
(3) the remainder of the funds shall be used for the payment of administrative costs associated with the establishment and continued operation of the fund.
e. In regard to the local property tax credit established pursuant to section 4 of P.L.2018, c.11 (C.54:4-66.9), only local charitable donations made to a charitable fund established by a local unit pursuant to section 2 of P.L.2018, c.11 (C.54:4-66.7) are eligible to be credited on the property tax bill.
L.2018, c.11, s.3.
