Credit toward certain fees provided by municipal authority.

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40:14B-22.5 Credit toward certain fees provided by municipal authority.

5. a. A municipal authority shall provide a credit applicable toward a connection or tapping fee to be charged for a reconnection of a disconnected property that was previously connected to the water or sewerage system, provided that:

(1) the property has been connected to the water or sewerage system for at least 20 years; and

(2) service charges have been paid for the property in at least one of the last five years.

b. The credit required under subsection a. of this section shall be calculated as follows:

(1) If the reconnection does not require any new physical connection or does not increase the nature or size of the service or the number of service units, or does not expand the use of the water or sewerage system, the credit shall be equal in amount to the new connection or tapping fee.

(2) If the reconnection requires a new physical connection, increases the nature or size of the service or the number of service units, or expands the use of the water or sewerage system, the credit shall be equal in amount to any connection or tapping fee previously paid for the property, and the municipal authority shall charge the difference between the credit and the connection or tapping fee for the new use or class.

(3) If no connection or tapping fee was ever paid for the property, but all service charges due and owing on the property have been paid for at least 20 years, the credit shall be equal in amount to the new connection or tapping fee; provided, however, that any charges due and owing pursuant to paragraph (2) of this subsection shall be paid.

c. If no connection or tapping fee was ever paid for a disconnected property that is to be reconnected and which was previously connected to the water or sewerage system for at least 20 years, the municipal authority shall charge, in addition to any amount due and owing after application of a credit pursuant to this section, a connection or tapping fee equal to the lesser of:

(1) 20 percent of the service charges that would have been paid based upon the usage for the last full year that the property was connected to the water or sewerage system for the period from the date of the disconnection from the water or sewerage system to the date of the new connection; or

(2) the new connection fee.

d. A credit shall not be allowed under this section for a property that has been disconnected from the water or sewerage system for more than five years.

e. As used in this section, "disconnected property" means a property that has been physically disconnected from the water or sewerage system or a property not physically disconnected but to which service has been discontinued without payments being made. A "disconnected property" shall not include a property that has been temporarily disconnected from the water or sewerage system or to which service has been discontinued without payments being made for less than 12 consecutive months and is being reconnected as it existed, prior to the temporary disconnection or discontinuance of service.

L.2018, c.74, s.5.


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