Bill Text: NJ A1811 | 2014-2015 | Regular Session | Introduced
Bill Title: Provides for homestead property tax relief for senior homestead owners with certain gross income based on higher of homestead credit or local school property taxes on first $60,000 of homestead value.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2014-01-16 - Introduced, Referred to Assembly Appropriations Committee [A1811 Detail]
Download: New_Jersey-2014-A1811-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblyman GILBERT "WHIP" L. WILSON
District 5 (Camden and Gloucester)
Assemblyman ANGEL FUENTES
District 5 (Camden and Gloucester)
SYNOPSIS
Provides for homestead property tax relief for senior homestead owners with certain gross income based on higher of homestead credit or local school property taxes on first $60,000 of homestead value.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act providing for direct property tax relief for certain individual senior homestead owners, supplementing P.L.1990, c.61 (C.54:4-8.57 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A resident who is 65 years of age or older at the close of the tax year, who has paid property taxes for the tax year on a homestead that is owned as such, and who has gross income for the tax year not in excess of $70,000, shall be allowed a homestead rebate or credit for the tax year equal to the greater of the homestead rebate or credit determined pursuant to this section or pursuant to section 3 of P.L.1990, c.60 (C.54:4-8.59)
b. The amount of the rebate or credit determined pursuant to this section shall be equal to the product of (1) the homestead property value amount, multiplied by (2) the school tax rate for the municipality in which the claimant maintains the homestead for which the claimant has paid property taxes for the tax year.
c. As used in this section,
"Equalized property value" means the assessed value of a homestead on which an applicant under this section has paid property taxes for the tax year, as certified by the county board of taxation pursuant to R.S.54:4-55, divided by the ratio of assessed value to true value of the municipality, reflected in the State equalization table promulgated by the director pursuant to section 1 of P.L.1954, c.86 (C.54:1-35.1) for that tax year.
"Homestead property value amount" means the lesser of
(1) $60,000, or
(2) the highest equalized property value of a homestead for the tax year, provided that if in any tax year the equalized property value of that homestead equals $60,000 or more, the homestead property value amount for that homestead shall be $60,000.
"School tax rate" means for a municipality the result of the total school tax levies divided by the net valuation taxable for the municipality as shown in the most recently available county abstract of ratables multiplied by the ratio of assessed value to true value of the municipality reflected in the State equalization table promulgated by the director pursuant to P.L.1954, c.86 (C.54:1-35.1 et seq.).
d. Notwithstanding any provision of this of P.L.1990, c.61 (C.54:4-8.57 et seq.) to the contrary, a homestead rebate or credit shall be allowed pursuant to this section in relation to the amount of the property taxes actually paid during the tax year for the homestead owned and occupied as such at 12:01 a.m. on October 1 of the tax year, whether paid for the entire tax year by the claimant or by any pre-October 1 owner or owners of that homestead during that tax year. Provided, further however, that the applicable limitations of subsections c., d. and e. of section 3 of P.L.1990, c.60 (C.54:4-8.59) shall apply.
e. A homestead credit allowed by the Director of the Division of Taxation to a claimant who claims a homestead credit determined pursuant to this section or section 3 of P.L.1990, c.61 (C.54:4-8.59), and whose homestead is not a unit in a cooperative, mutual housing corporation or continuing care retirement community, shall be paid by the State Treasurer, through electronic funds transfer made by the director to the local property tax account maintained by the local tax collector for the homestead of the claimant as the claimant shall identify, in equal installments after the application for the credit has been approved, at the dates and in the manner as the director shall determine to best coincide with the next local property tax quarterly due dates of August 1 and November 1. Notice of payments of credit installments shall be provided to the claimant and the appropriate local tax collector.
f. Notwithstanding subsection e. of this section, the director shall provide a homestead benefit under this act as a credit only if: (1) the director can ensure that the benefit will be applied to the appropriate taxpayer, and (2) the claimant does not elect in the claimant's homestead credit application to receive a rebate. Otherwise, the director may remit a homestead benefit directly to an eligible taxpayer as a rebate.
2. This act shall take effect immediately.
STATEMENT
This provides for homestead property tax relief for senior homestead owners with gross income not in excess of $70,000 based on higher of the statutory homestead credit under the current "Homestead Property Tax Credit Act," or the product of the municipal school property tax rate times the first $60,000 of homestead property value. The bill will ensure that these senior citizens owning their primary homes will be protected from at least a certain minimum level of public school taxes on their homes under the homestead credit law.
