Sponsored by:
Assemblywoman NANCY F. MUNOZ
District 21 (Morris, Somerset and Union)
SYNOPSIS
Permits eligible claimant who is proportionate owner paying entire property tax bill to collect entire homestead property tax reimbursement amount.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning payment of homestead property tax reimbursement amount to certain proportionate owners and amending P.L.1997, c.348.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 5 of P.L.1997, c.348 (C.54:4-8.72) is amended to read as follows:
5. When title to a homestead as to which a homestead property tax reimbursement is claimed is held by an eligible claimant and another or others, either as tenants in common or as joint tenants, the eligible claimant shall not be allowed a homestead property tax reimbursement in an amount in excess of his or her proportionate share of the taxes assessed against the homestead, which proportionate share, for the purposes of this act, shall be deemed to be equal to that of each of the other tenants, unless it is shown that the interests in question are not equal, in which event the eligible claimant's proportionate share shall be as shown. Regardless of the proportionate share of ownership, the eligible claimant shall be entitled to the entire homestead property tax reimbursement amount for any year that the eligible claimant paid the entire amount of the taxes due and payable on the homestead property and without contribution from any other person owning a proportionate share of that property, whether or not the other person is an eligible claimant. Nothing herein shall preclude more than one tenant, whether title be held in common or joint tenancy, from claiming a homestead property tax reimbursement from the taxes assessed against the property so held, but no more than the equivalent of one full homestead property tax reimbursement in regard to such homestead shall be allowed in any year. In any case in which the eligible claimants cannot agree as to the apportionment thereof, such homestead property tax reimbursement shall be apportioned between or among them in proportion to their interest. Property held by husband and wife, as tenants by the entirety, shall be deemed wholly owned by each tenant, but no more than one full homestead property tax reimbursement in regard to such homestead shall be allowed in any year. Right to claim a homestead property tax reimbursement hereunder shall extend to a homestead the title to which is held by a partnership, to the extent of the eligible claimant's interest as a partner therein, and by a guardian, trustee, committee, conservator or other fiduciary for any person who would otherwise be entitled to claim such homestead property tax reimbursement hereunder, but not to a homestead the title to which is held by a corporation; except that a residential shareholder in a cooperative or mutual housing corporation shall be entitled to claim a homestead property tax reimbursement if he or she is otherwise eligible to receive it, to the extent of the proportionate share of the taxes assessed against the homestead of the corporation, or any other entity holding title, attributable to his or her unit therein. No eligible claimant shall be entitled to payment under this act for a homestead property tax reimbursement on more than one homestead within the State in the same tax year.
(cf: P.L.1997, c.348, s.5)
2. This act shall take effect immediately.
STATEMENT
This bill would permit a person who is an eligible claimant for a homestead property tax reimbursement (that is, who owns and occupies a residential property) to receive the entire homestead property tax reimbursement amount when there are one or more non-occupying proportional owners (who are not "eligible claimants" for the reimbursement), provided that the eligible claimant has paid the entire amount of property taxes due and payable for the year, without contribution from the other proportional owners. This amendment to the law would permit a divorced person who is responsible for paying the entire tax bill to collect the entire homestead property tax reimbursement amount for a property, despite title being held with an ex-spouse who is not an eligible claimant due to non-residence at that address.