New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 30 - LOCAL FINANCE BOARD
Subchapter 8 - FINANCIAL ADMINISTRATION
Section 5:30-8.3 - Minimum surety bond coverage for tax collectors
Universal Citation: NJ Admin Code 5:30-8.3
Current through Register Vol. 56, No. 18, September 16, 2024
(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.
Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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