Overpayment Issue Taxes Councilman's Generosity

City Tax Collector Constance Ludden wanted $809,984 in tax overpayments put into surplus to balance the books, but Councilman Cory Storch raised questions Monday (Jan. 30, 2006) after noticing he was on the hook for more than $3,000.

The overpayments date back to 1996 and range from $5.40 to $18,292. Owners of property in the 907 accounts can claim the money if they can prove the overpayments. The 18-page list contains several well-known property owners, including Storch, a city inspector, library director Joe Da Rold, Walgreen’s, The Salvation Army, Leland Gardens, Union County College, PNC Bank and Interfaith Council for the Homeless.

Ludden said the issue was one of balancing the city’s books and notices should have been sent to property owners.

“Well, I‘m on the list and the city owes me a lot of money,” Storch said, claiming he never received a letter.

“I would have noticed if I got a letter saying the city owed me $3,000,“ he said.

Ludden said some of the problems included bulk payments by mortgage companies and mix-ups that were difficult to sort out.

Council members said they wanted at least two newspaper advertisements of the overpayments published so property owners could come forward to resolve the issues.

Bob Swisher, representing the city’s auditing firm, Suplee Clooney & Co., said the tax office had problems because payments came from various sources that were hard to trace. Both Swisher and Ludden presented the problem as an accounting procedure that could be put off if the council wished, but one that should be resolved by the June 30 end of the fiscal year.

Ludden promised to send out another round of notices for the overpayments. Anyone who can prove a claim to an overpayment will receive the money back.

The list of overpayments is available in the City Clerk’s office at City Hall, 515 Watchung Avenue. The resolution will be up for a vote at the regular City Council meeting on Feb.6, 2006 at 8 p.m. in the Municipal Court/Council Chambers, 325 Watchung Ave.

--Bernice Paglia

KEYWORDS: taxes