When are estimated bills sent out?

Estimated bills are typically sent out by resolution for the third quarter only in New Jersey. This practice allows local governing bodies to establish a timeline for issuing these bills based on their financial planning needs. The rationale is to ensure that municipalities can maintain cash flow as they await final tax assessments and budget approvals for the year.

By sending out estimated bills for the third quarter, municipalities can collect revenue in a timely manner, which supports ongoing operations and services. It reflects proactive financial management, particularly in situations where the final tax calculations might take longer than anticipated.

The other options do not accurately reflect the standard practice for estimated billing in New Jersey. For instance, issuing bills at the beginning of the tax year does not align with the timing of tax assessments. Quarterly billing deductions based on software calculations are typically for regular bills rather than specifically estimated bills. Finally, sending bills annually after tax assessments does not account for the urgent need for interim revenue that estimated bills provide during the year.