Newark Special Tax Unit – Newark, NJ

Specialized Municipal Tax Collection

The Newark Special Tax Unit, formally known as the Division of Tax Abatement and Special Taxes, is a specialized financial office located within City Hall. Unlike the standard Tax Collector’s office which focuses on real estate property taxes, this unit manages a specific portfolio of local revenue streams that are vital to the city’s budget. The division ensures that businesses operating within Newark comply with local ordinances regarding non-property taxes and service charges, playing a key role in the city’s fiscal oversight and economic regulation.

Tax Responsibilities and Collections

• Payroll Tax: Administration and collection of the 1% payroll tax imposed on employers located within Newark.
• Hotel and Motel Occupancy Tax: Collection of the municipal occupancy tax levied on lodging establishments.
• Parking Tax: Oversight of the 15% special tax collected from commercial parking lot operators.
• Tax Abatements: Management of Payments in Lieu of Taxes (PILOT) agreements and ensuring accurate billing for properties with long-term tax exemptions.

Compliance and Enforcement

The unit is responsible for auditing businesses to ensure accurate reporting and payment of these special taxes. Failure to comply can result in audits, penalties, and liens. The staff at 920 Broad Street assists business owners in understanding their obligations, filing the necessary monthly or quarterly returns, and resolving billing disputes related to these specific levies.

Location and Access

Situated in Suite B26 of Newark City Hall, the office is accessible through the main rotunda entrance. Visitors must clear security screening upon entry. While some forms and payments can be mailed, business owners often visit in person to resolve complex abatement issues or to set up payment plans for arrears. It is advisable to call ahead to ensure the specific auditor or officer needed for your case is available.