N.J. Admin. Code § 5:30-8.3

Current through Register Vol. 56, No. 17, September 3, 2024

Section 5:30-8.3 - Minimum surety bond coverage for tax collectors

(a) Each tax collector and collector of utility rents shall be bonded with a surety bond, calculated as follows:

1. The minimum requirement for the surety bond of each tax collector shall be such percentage of the preceding year's tax duplicate for all tax levies as is required by the schedule set forth in this subsection, along with such percentage of the following revenues collected by the tax collector in the preceding year:

i. Payments in lieu of taxes (PILOTs), if collected by the tax collector;

ii. Local assessments; and

iii. Any other revenues collected by the tax collector.

2. The minimum requirement for the surety bond of each collector of utility rents shall be such percentage of the preceding year's utility charges as is required by the schedule set forth in this subsection.

3. Tax Levy or Utility Charges Minimum Bond Required

Up to $ 100,000	25% of the Levy
$ 100,000 to $ 250,000	$ 25,000 + 8% of all over $ 100,000
$ 250,000 to $ 500,000	$ 37,000 + 6% of all over $ 250,000
$ 500,000 to $ 750,000	$ 52,000 + 4% of all over $ 500,000
$ 750,000 to $ 1,000,000	$ 62,000 + 2% of all over $ 750,000
$ 1,000,000 to $ 2,000,000	$ 67,000 + 1% of all over $ 1,000,000
$ 2,000,000 to $ 5,000,000	$ 77,000 + 1/2 % of all over $ 2,000,000
$ 5,000,000 and upwards	$ 92,000 + 1/4 % of all over $ 5,000,000

4. Local units are encouraged to utilize the following recommended amounts in lieu of the minimum amounts in order to provide a higher level of security of public funds:

Up to $ 200,000	25% of the Levy
$ 200,000 to $ 350,000	$ 50,000 + 8% of all over $ 200,000
$ 350,000 to $ 500,000	$ 62,000 + 6% of all over $ 350,000
$ 500,000 to $ 1,000,000	$ 71,000 + 4% of all over $ 500,000
$ 1,000,000 to $ 2,500,000	$ 91,000 + 2% of all over $ 1,000,000
$ 2,500,000 to $ 5,000,000	$ 121,000 + 1% of all over $ 2,500,000
$ 5,000,000 and upwards	$ 146,000 + 1/2 % of all over $ 5,000,000

(b) The following additional provisions shall apply to such surety bonds:

1. In fixing such minimum bond, the nearest even $ 1,000 shall be used.

2. When the collector of taxes and the collector of utility charges is the same person, the minimum surety bond coverage shall be computed separately. The required amounts shall be combined in a single surety bond.

3. The minimum coverage arrived at by use of the foregoing schedule shall be an overall minimum amount where there is more than one person in the office. The several persons handling funds should be bonded in accordance with their responsibility.

4. In any case where a municipality desires to substitute for the foregoing method any other method which it deems satisfactory and which complies with the provisions of the existing statutes, such substituted procedure, shall, if approved by the Local Finance Board, be deemed to comply with this chapter.

5. If coverage is being provided pursuant to the local unit's blanket fidelity bond, coverage under the blanket bond for the tax collector and collector of utility charges shall be subject to the application of individual rating criteria and underwriting standards that consider the risk and potential liability presented by the individuals covered by the blanket bond as if the individuals were covered by an individual bond.

N.J. Admin. Code § 5:30-8.3

Repealed by R.1979 d.16, effective 1/17/1979.
See: 10 New Jersey Register 529(a), 11 New Jersey Register 59(a).
Text on books and forms repealed.
New Rule R.1990 d.383, effective 8/6/1990.
See: 22 New Jersey Register 706(b), 22 New Jersey Register 2276(b).
Amended by R.1998 d.307, effective 6/15/1998.
See: 30 New Jersey Register 1123(a), 30 New Jersey Register 2204(b).
Rewrote the section.

Amended by 55 N.J.R. 1690(a), effective 8/7/2023