What is the interest rate on appeals for overpayments?

In New Jersey, the interest rate on appeals for property tax overpayments is set at 5%. This is established by specific state legislation that governs the compensation for overpaid taxes. When a property owner successfully appeals and proves that they have overpaid their taxes, they are entitled to a refund, along with interest calculated at the 5% rate. This interest is intended to compensate the taxpayer for the time their funds were held by the municipality before being returned. Knowing this rate is essential for both taxpayers and tax collectors, as it impacts financial planning and the overall administration of property tax appeals.

The other rate options are not applicable for overpayment appeals, as they reflect different contexts or areas of taxation and do not align with the established rate set specifically for tax appeals in New Jersey.