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Assemblyman David Bailey, Jr. introduces A800 to cap interest rates on delinquent water and sewer bills and property taxes

Original title: Modifies interest rates and accrual of interest on certain unpaid water and sewer utility bills and delinquent municipal taxes, assessments, and other municipal liens and charges.

Last action · January 13, 2026: Introduced, Referred to Assembly Telecommunications and Utilities CommitteeSponsor: Bailey, David, Jr.

Companion · S 738same policy, Senate version
Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Assembly Bill 800 modifies the interest rates and accrual rules for unpaid water and sewer utility bills, municipal taxes, assessments, and liens across New Jersey. Under the bill, interest on delinquent water and sewer charges will match the rather than fixed statutory percentages, while property tax delinquency rates will be capped at three percentage points above the prime rate.

Why it matters

Property owners and utility customers facing late payments will experience shifted financial penalties, replacing long-standing fixed rates of up to 18 percent annually or 1.5 percent monthly with market-indexed rates for utilities and prime-plus-three-points for municipal taxes.

Background
  • The statutory interest rate on unpaid sewerage and utility service charges in New Jersey had remained fixed at 1.5 percent per month since January 1982. context
  • Property tax delinquency interest rates governed by R.S.54:4-67 had previously been capped at tiered rates established in 1979. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Property owners

Property owners face modified interest accrual rates and penalty structures on delinquent municipal taxes, assessments, and water or sewer service charges.

Directly affected

Sewerage authorities

Sewerage authorities must calculate interest on unpaid service charges using the prevailing municipal bond yield and observe a 30-day grace period before interest accrues.

Directly affected

Municipalities

Municipalities must apply updated interest caps on delinquent property taxes and municipal liens, and may exercise discretionary waivers during declared states of emergency.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

How will interest on late water and sewer bills be calculated under this bill?
Interest will be charged at a rate equal to the , assessed for each month or fraction thereof and compounded annually at the end of each year, rather than the previous fixed rate of 1.5 percent per month.
What is the new interest rate cap for delinquent property taxes?
Delinquent municipal taxes, assessments, and other s will accrue interest at a rate not exceeding three percentage points above the prime rate, replacing the older tiered rates of 8 percent and 18 percent.
How long must a utility bill be overdue before interest begins to accrue?
Interest is permitted to accrue only after a service charge remains unpaid for at least 30 days following the payment due date.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Jan 13, 2026HouseIntroduced
    Introduced, Referred to Assembly Telecommunications and Utilities Committee

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Bailey, David, Jr.Primary sponsorNo profile match

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Transition from Fixed to Market-Indexed Utility Penalties

The legislation replaces utility interest rates that remained unchanged since 1982 with a dynamic formula tied to municipal bond yields.

Connected Entities

New Jersey Water Supply Authority, Department of Environmental Protection, General Assembly and 8 more
OrganizationNew Jersey Water Supply Authority“Authority created pursuant to P.L.1981, c.293”Map →
OrganizationDepartment of Environmental Protection“Department defined in the New Jersey Water Supply Authority Act”Map →
OrganizationGeneral Assembly“Chamber of the New Jersey Legislature where the bill was introduced”Map →
OrganizationDivision of Local Government Services“Division within the Department of Community Affairs”Map →
OrganizationDepartment of Community Affairs“State department receiving notices of municipal resolution adoption regarding ta”Map →
OrganizationDivision of Taxation“Division determining and redetermining the prime rate”Map →
OrganizationDepartment of the Treasury“Department containing the Division of Taxation”Map →
PersonDavid Bailey, Jr.“Assemblyman sponsoring Assembly Bill No. 800 representing District 3”Map →
OrganizationDepartment of Agriculture“Department licensing swine producers”Map →
OrganizationSenate“Upper house of the New Jersey Legislature”Map →
OrganizationDepartment of Health“State department authorized to certify if water restriction endangers public hea”Map →

Sources

Open source document

njleg.state.nj.us

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy25
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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