Bill Text: NJ A3604 | 2022-2023 | Regular Session | Introduced
Bill Title: Allows property tax rebate for disabled veterans.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2022-03-14 - Introduced, Referred to Assembly Military and Veterans' Affairs Committee [A3604 Detail]
Download: New_Jersey-2022-A3604-Introduced.html
Sponsored by:
Assemblywoman CLEOPATRA G. TUCKER
District 28 (Essex)
Assemblywoman SADAF F. JAFFER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
SYNOPSIS
Allows property tax rebate for disabled veterans.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning property tax relief for disabled veterans, supplementing Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Arm's-length transaction" means a transaction in which the parties are dealing from equal bargaining positions, neither party is subject to the other's control or dominant influence, and the transaction is entirely legal in all respects and is treated with fairness and integrity;
"Condominium" means the form of real property ownership provided for under the "Condominium Act," P.L.1969, c.257 (C.46:8B-1 et seq.);
"Continuing care retirement community" means a residential facility primarily for retired persons where lodging and nursing, medical, or other health-related services at the same or another location are provided as continuing care to an individual pursuant to an agreement effective for the life of the individual or for a period greater than one year, including mutually terminable contracts, and in consideration of the payment of an entrance fee with or without other periodic charges;
"Cooperative" means a housing corporation or association that entitles the holder of a share or membership interest thereof to possess and occupy for dwelling purposes a house, apartment, manufactured or mobile home, or other unit of housing owned or leased by the corporation or association, or to lease or purchase a unit of housing constructed or to be constructed by the corporation or association;
"Director" means the Director of the Division of Taxation in the Department of the Treasury;
"Dwelling house" means any residential property assessed as real property which consists of not more than four units, of which not more than one may be used for commercial purposes, but shall not include a unit in a condominium, cooperative, horizontal property regime, or mutual housing corporation;
"Homestead" means:
a. (1) a dwelling house and the land on which that dwelling house is located, which dwelling house constitutes the place of the claimant's domicile and is owned and used by the claimant as the claimant's principal residence;
(2) a dwelling house situated on land owned by a person other than the claimant, which dwelling house constitutes the place of the claimant's domicile and is owned and used by the claimant as the claimant's principal residence;
(3) a condominium unit or a unit in a horizontal property regime, which unit constitutes the place of the claimant's domicile and is owned and used by the claimant as the claimant's principal residence;
(4) for purposes of this definition as provided in this subsection, in addition to the generally accepted meaning of owned or ownership, a homestead shall be deemed to be owned by a person if that person is a tenant for life or a tenant under a lease for 99 years or more and is entitled to and actually takes possession of the homestead under an executory contract for the sale thereof or under an agreement with a lending institution which holds title as security for a loan, or is a resident of a continuing care retirement community pursuant to a contract for continuing care for the life of that person, which contract requires the resident to bear a share of the property taxes that are assessed upon the continuing care retirement community, if a share is attributable to the unit that the resident occupies;
b. a unit in a cooperative or mutual housing corporation which constitutes the place of domicile of a residential shareholder or lessee therein, or of a lessee, or shareholder who is not a residential shareholder therein, and which is used by the claimant as the claimant's principal residence; and
c. a unit of residential rental property, which unit constitutes the place of the claimant's domicile and is used by the claimant as the claimant's principal residence;
"Horizontal property regime" means the form of real property ownership provided for under the "Horizontal Property Act," P.L.1963, c.168 (C.46:8A-1 et seq.);
"Gross income" means all New Jersey gross income required to be reported pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., other than income excludable from the gross income tax return, but before reduction thereof by any applicable exemptions, deductions and credits, received during the taxable year by the owner or residential shareholder in, or lessee of, a homestead;
"Manufactured home" or "mobile home" means a unit of housing that:
(1) Consists of one or more transportable sections that are substantially constructed off site and, if more than one section, are joined together on site;
(2) Is built on a permanent chassis;
(3) Is designed to be used, when connected to utilities, as a dwelling on a permanent or nonpermanent foundation; and
(4) Is manufactured in accordance with the standards promulgated for a manufactured home by the Secretary of the United States Department of Housing and Urban Development pursuant to the "National Manufactured Housing Construction and Safety Standards Act of 1974," Pub.L.93-383 (42 U.S.C. s.5401 et seq.) and the standards promulgated for a manufactured or mobile home by the commissioner pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.);
"Mobile home park" means a parcel of land, or two or more parcels of land, containing no fewer than 10 sites equipped for the installation of manufactured or mobile homes, where these sites are under common ownership and control for the purpose of leasing each site to the owner of a manufactured or mobile home for the installation thereof, and where the owner or owners provide services that are provided by the municipality in which the park is located for property owners outside the park, which services may include but shall not be limited to:
(1) The construction and maintenance of streets;
(2) Lighting of streets and other common areas;
(3) Garbage removal;
(4) Snow removal; and
(5) Provisions for the drainage of surface water from home sites and common areas;
"Mutual housing corporation" means a corporation not-for-profit, incorporated under the laws of this State on a mutual or cooperative basis within the scope of section 607 of the Lanham Act (National Defense Housing), Pub.L.849, 76th Congress (42 U.S.C. s.1521 et seq.), as amended, which acquired a National Defense Housing Project pursuant to that act;
"Principal residence" means a homestead actually and continually occupied by a claimant as the claimant's permanent residence, as distinguished from a vacation home, property owned and rented or offered for rent by the claimant, and other secondary real property holdings;
"Property tax" means payments to a municipality based upon an assessment made by the municipality upon real property on an ad valorem basis on land and improvements, and shall include the amount of property tax credit as defined in section 1 of P.L.2018, c.11 (C.54:4-66.6), but shall not include payments made in lieu of taxes;
"Rent" means the amount due in an arm's-length transaction solely for the right of occupancy of a homestead that is a unit of residential rental property. Rent shall not include any amount paid under the federal Housing Choice Voucher (Section 8) Program or paid as a rental assistance grant under section 1 of P.L.2004, c.140 (C.52:27D-287.1). If the director finds that the parties in a rental transaction have not dealt with each other in an arm's-length transaction and that the rent due was excessive, the director may, for purposes of the homestead rebate claim, adjust the rent claimed in the homestead rebate application to a reasonable amount of rent;
"Resident" means an individual:
a. who is domiciled in this State, unless the individual maintains no permanent place of abode in this State, maintains a permanent place of abode elsewhere, and spends in the aggregate no more than 30 days of the tax year in this State; or
b. who is not domiciled in this State but maintains a permanent place of abode in this State and spends in the aggregate more than 183 days of the tax year in this State, unless the individual is in the Armed Forces of the United States;
"Residential rental property" means:
a. any building or structure or complex of buildings or structures in which dwelling units are rented or leased or offered for rental or lease for residential purposes;
b. a rooming house, hotel, or motel, if the rooms constituting the homestead are equipped with kitchen and bathroom facilities;
c. any building or structure or complex of buildings or structures constructed under the following sections of the National Housing Act (Pub.L.73-479) as amended and supplemented: section 202, Housing Act of 1959 (Pub.L.86-372) and as subsequently amended, section 231, Housing Act of 1959; and
d. a site in a mobile home park equipped for the installation of manufactured or mobile homes, where these sites are under common ownership and control for the purpose of leasing each site to the owner of a manufactured or mobile home for the installation thereof; and
"Tax year" means the calendar year in which property taxes are due and payable.
2. a. A resident of this State who has been honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States and who has been declared by the United States Department of Veterans' Affairs to have a service-connected disability, shall be allowed a rebate for the tax year. The rebate amount shall be a percentage of the property taxes paid by the claimant in that tax year on the claimant's homestead equal to the claimant's percentage of service-connected disability. The State Treasurer shall annually on or before October 31 pay and distribute the amount of a rebate payable to each claimant whose rebate is approved by the director.
b. In the case of a claimant living in a rental property which constitutes the claimant's homestead, 18 percent of the rent paid by the claimant during the tax year shall be considered property taxes paid on the claimant's homestead. In the case of a claimant living in a mobile home that constitutes the claimant's homestead, 18 percent of the site fee paid by the claimant during the tax year to the owner of the mobile home park shall be considered property taxes paid on the claimant's homestead.
c. A rebate allowed
pursuant to P.L. , c. (C. ) (pending before the Legislature as this
bill) shall not exceed $5,000. A claimant with gross income for the tax year in
excess of $200,000
shall not be eligible for the rebate. A rebate allowed pursuant to P.L. ,
c. (C. ) (pending before the Legislature as this bill), when combined
with any other homestead rebates or credits, shall not exceed the property
taxes paid by the claimant on the claimant's homestead.
3. a. No rebate shall be allowed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) except upon annual application, as shall be prescribed by the director. The director may require a claimant for a rebate to attach to the rebate application a copy of the appropriate property tax bill or proof of rent paid for the prior tax year.
b. Upon approval of rebate applications by the director, the director shall prepare lists of individuals entitled to a rebate, together with the respective amounts due each claimant, and shall forward those lists to the State Treasurer, the Director of the Division of Budget and Accounting, and any other officials as the director deems appropriate, on or before the earliest of such date or dates as may be convenient for the director to compile such lists. The director may inspect all records in the offices of the tax collector and tax assessor of a municipality with respect to applications, claims, and allowances for rebates.
c. If a rebate application contains a claim for a rebate that is incorrectly determined by the claimant or is based upon incorrect or insufficient information from which the director is to approve the claim, the director may determine the eligibility of the claimant for a rebate and the correct amount of a rebate to be paid to that claimant from such other information as may be available to the director. In addition, the director may adjust the amount of any rebate to which a claimant may be entitled by any part of the amount of any previous rebate erroneously claimed by and paid to that claimant.
d. In the case of a claimant for a rebate whose homestead is a unit in a cooperative, mutual housing corporation, or continuing care retirement community, the director may provide that the application shall include the name and address of the location of the property and the amount of real property taxes attributed to the cooperative, mutual housing residential unit, or continuing care retirement community residential unit, as shall be indicated in an official notice, which shall be furnished by the cooperative, mutual housing corporation, or continuing care retirement community for the same year.
e. A rebate shall be
allowed pursuant to P.L. , c. (C. ) (pending before the Legislature
as this bill) for a claimant whose ownership of an interest in a homestead is
satisfied by the holding of the beneficial interest if legal title thereto or
share therein is held by another for the benefit of the claimant.
4. a. The director shall determine the amount of the rebate that shall be provided for each claimant pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) based upon the information provided by the individual applicant in the application or from any other information as may be available to the director, and shall notify the applicant of the determined amount in the form of the rebate check or in any other manner as the director may deem appropriate. Subject to the provisions of the State Uniform Tax Procedure Law, R.S.54:48-1 et seq., such notification shall finally and irrevocably fix the amount of the rebate unless the applicant, within 90 days after having been given notice of such determination, applies to the director for a hearing, or unless the director re-determines the same. After such hearing the director shall give notice of the final determination to the applicant.
b. An applicant for a rebate authorized under P.L. , c. (C. ) (pending before the Legislature as this bill) who is aggrieved by any decision, order, finding, or denial by the director of all or part of that applicant's rebate may appeal therefrom to the New Jersey Tax Court in accordance with the provisions of the State Uniform Tax Procedure Law, R.S. 54:48-1 et seq. The appeal shall be the exclusive remedy available to an applicant for review of a decision of the director in respect to the determination of all or part of a rebate authorized under P.L. , c. (C. ) (pending before the Legislature as this bill).
c. A rebate paid as a result of misrepresentation or paid in error, shall be payable to and recoverable by the director in the same manner as a deficiency with respect to the payment of a State tax in accordance with the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.
5. a. The tax collector of each municipality shall, on or before April 1 of each year, furnish the director with a list of property taxpayers in the district who are delinquent for taxes due and payable for the year immediately preceding and the amounts of such delinquencies. The collector shall report on such list the name, lot and block number on the property tax duplicate as may be applicable, and the address of each owner to whom a delinquency is attributable together with the amount of such delinquency so identified. No rebate payment under P.L. , c. (C. ) (pending before the Legislature as this bill) shall be made to a property owner while that property owner's delinquency remains; provided, however, that for the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), for an assessment on a property which is on appeal and for which the statutory percentage of the tax as provided in R.S.54:3-27 has been paid, the taxes assessed on that property shall not be regarded as delinquent.
b. If the director receives the list as provided for in subsection a. of this section, and the director determines that a property tax delinquency remains for the preceding tax year on April 1, the director shall ascertain the amount of the rebate required to be withheld because of such delinquency in each municipality in the State, and shall certify such amounts to the State Treasurer as soon thereafter as may be practicable.
c. On or before November 15, the director shall notify each rebate claimant whose rebate has been withheld because of delinquency that the amount of the rebate to which the claimant otherwise would have been entitled has been sent to the tax collector in the municipality to be credited against the claimant's delinquency.
d. Upon certification by the director as to the amount of rebates required to be withheld because of delinquency in the several municipalities, the State Treasurer, upon the warrant of the Director of the Division of Budget and Accounting, shall pay such amount on or before October 30 to the tax collector in each municipality.
e. The tax collector in each municipality shall credit the tax delinquency of each property taxpayer who appears on the delinquency list set forth in subsection a. of this section in the amount that otherwise would have been returned to the property taxpayer as a rebate. In the event that the amount so credited by the tax collector exceeds the amount of delinquency, the tax collector may return the difference to the taxpayer or credit such amount to the subsequent property tax bill.
f. In the case of delinquency in the payment of property taxes by a cooperative, mutual housing corporation, or continuing care retirement community, a rebate that may be due an individual resident shall be paid by the State Treasurer to the tax collector of the municipality. The tax collector shall credit the cooperative, mutual housing corporation, or continuing care retirement community with such payment and the cooperative, mutual housing corporation, or continuing care retirement community shall, in turn, credit the individual unit owner to the extent of the rebate and notify the applicant of the amount to be credited.
g. If a tax collector fails to comply with the provisions of subsection a. of this section requiring the tax collector to furnish the director with a list, on or before April 1 of each year, of property taxpayers in the district delinquent for taxes due and payable for the year immediately preceding and the amounts of such delinquencies, the director shall pay the rebate directly to the delinquent applicant rather than to the tax collector of the municipality as set forth in subsection d. of this section.
6. The Director of the Division of Taxation in the Department of the Treasury is empowered to promulgate rules and regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) and to prescribe forms to administer the provisions of this act. Notwithstanding any provisions of P.L.1968, c.410 to the contrary, the director may adopt, immediately upon filing with the Office of Administrative Law, such regulations as the director deems necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) which regulations shall be effective for a period not to exceed 18 months from the date of the filing. Such regulations may thereafter be amended, adopted or readopted by the director as the director deems necessary in accordance with the requirements of P.L.1968, c.410.
7. This act shall take effect immediately.
STATEMENT
This bill allows veterans with a service-connected disability to receive a property tax rebate from the State in proportion to the percentage of their service-connected disability. The bill provides property tax relief to veterans who have a disability rating of less than 100 percent total and permanent disability. Veterans who have a disability rating of 100 percent total and permanent disability are already exempt from paying property taxes.
Veterans with a service-connected disability are assigned a disability rating from the United States Department of Veterans' Affairs. A disability rating may range from 0 percent to 100 percent. That rating will determine the percentage of property taxes paid that the veteran will be allowed as a rebate under this bill.
Funding for the rebate allowed by this bill is dependent on annual appropriations by the Legislature. The bill caps the rebate at $5,000 and limits availability of the rebate to veterans with gross income of up to $200,000.
