Sussex approves tax collection rate for 2014
SUSSEX — The Sussex Borough Council decided to set a tax collection rate of 96.42 percent at its March 4 meeting.
The council had two choices: to use last year's collection rate of about 80 percent, which was caused because the borough was unable to collect money from Sussex Inn. The second choice was to average the 2011, 2012, 2013.
Sussex officials chose the latter, determining a 2014 tax collection rate of 96.42 percent.
By law, towns in New Jersey are required to report income on a cash basis, as received, and report expenditures on an accrual basis. The accrual basis is when expenditures are deducted immediately after invoices are approved, whether a check has been cut or not. In this way, the state requires New Jersey towns to be conservative on the income and the expense side of the balance sheet.
Mayor Jonathan M. Rose explained that this is one reason why so few towns go into bankruptcy in New Jersey.
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