Bill Text: NJ A3915 | 2014-2015 | Regular Session | Introduced
Bill Title: Revises homestead property tax reimbursement eligibility requirements for certain claimants relocating homesteads within the same municipality.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2014-12-04 - Introduced, Referred to Assembly Housing and Community Development Committee [A3915 Detail]
Download: New_Jersey-2014-A3915-Introduced.html
Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
SYNOPSIS
Revises homestead property tax reimbursement eligibility requirements for certain claimants relocating homesteads within the same municipality.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning eligibility for homestead property tax reimbursements, amending P.L.1997, c.348.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1997, c.348 (C.54:4-8.67) is amended to read as follows:
1. As used in this act:
"Base year" means, in the case of a person who is an eligible claimant on or before December 31, 1997, the tax year 1997; and in the case of a person who first becomes an eligible claimant after December 31, 1997, the tax year in which the person first becomes an eligible claimant. In the case of an eligible claimant who subsequently moves from the homestead for which the initial eligibility was established, the base year shall be the first full tax year during which the person resides in the new homestead. Provided however, a base year for an eligible claimant after such a move shall not apply to tax years commencing prior to January 1, 2009. In the case of an eligible claimant who subsequently moves from the homestead for which the initial eligibility was established to another homestead of equal or lesser value that is located within the same municipality as the homestead for which the initial eligibility was established and that is not new construction, the base year shall be the tax year immediately preceding the first full tax year during which the person resides in the new homestead. Provided however, a base year for an eligible claimant after such a move within the same municipality shall not apply to tax years commencing prior to January 1, 2014.
"Commissioner" means the Commissioner of Community Affairs.
"Director" means the Director of the Division of Taxation.
"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.).
"Cooperative" means a housing corporation or association which entitles the holder of a share or membership interest thereof to possess and occupy for dwelling purposes a house, apartment 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.
"Disabled person" means an individual receiving monetary payments pursuant to Title II of the federal Social Security Act (42 U.S.C. s.401 et seq.) on December 31, 1998, or on December 31 in ll or any part of the year for which a homestead property tax reimbursement under this act is claimed.
"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.
"Eligible claimant" means a person who:
is 65 or more years of age, or who is a disabled person;
is an owner of a homestead, or the lessee of a site in a mobile home park on which site the applicant owns a manufactured or mobile home;
has an annual income of less than $17,918 in tax year 1998, less than $18,151 in tax year 1999, or less than $37,174 in tax year 2000, if single, or, if married, whose annual income combined with that of the spouse is less than $21,970 in tax year 1998, less than $22,256 in tax year 1999, or less than $45,582 in tax year 2000, which income eligibility limits for single and married persons shall be subject to adjustments in tax years 2001 through 2006 pursuant to section 9 of P.L.1997, c.348 (C.54:4-8.68);
has an annual income of $60,000 or less in tax year 2007, $70,000 or less in tax year 2008, or $80,000 or less in tax year 2009, if single or married, which income eligibility limits shall be subject to adjustments in subsequent tax years pursuant to section 9 of P.L.1997, c.348 (C.54:4-8.68);
as a renter or homeowner, has made a long-term contribution to the fabric, social structure and finances of one or more communities in this State, as demonstrated through the payment of property taxes directly, or through rent, on any homestead or rental unit used as a principal residence in this State for at least 10 consecutive years at least three of which as owner of the homestead for which a homestead property tax reimbursement is sought prior to the date that an initial application for a homestead property tax reimbursement is filed. A person who has been an eligible claimant for a previous tax year shall qualify as an eligible claimant beginning the second full tax year following a move to another homestead in New Jersey, despite not meeting the three-year minimum residency and ownership requirement required for initial claimants under this paragraph; provided that the person satisfies the income eligibility limits for the tax year. Provided however, eligibility beginning in a second full tax year after such a move shall not apply to tax years commencing prior to January 1, 2010. A person who has been an eligible claimant for a previous tax year shall qualify as an eligible claimant beginning the first full tax year following a move to another homestead of equal or lesser value that is located within the same municipality as the homestead for which the initial eligibility was established and that is not new construction, despite not meeting the three-year minimum residency and ownership requirement required for initial claimants under this paragraph; provided that the person satisfies the income eligibility limits for the tax year. Provided however, eligibility beginning in a first full tax year after such a move within the same municipality shall not apply to tax years commencing prior to January 1, 2015.
"Homestead" means:
a dwelling house and the land on which that dwelling house is located which constitutes the place of the eligible claimant's domicile and is owned and used by the eligible claimant as the eligible claimant's principal residence;
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 such site is used by the eligible claimant as the eligible claimant's principal residence;
a dwelling house situated on land owned by a person other than the eligible claimant which constitutes the place of the eligible claimant's domicile and is owned and used by the eligible claimant as the eligible claimant's principal residence;
a condominium unit or a unit in a horizontal property regime or a continuing care retirement community which constitutes the place of the eligible claimant's domicile and is owned and used by the eligible claimant as the eligible claimant's principal residence.
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, 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 requires the resident to bear, separately from any other charges, the proportionate share of property taxes attributable to the unit that the resident occupies;
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, which is used by the eligible claimant as the eligible claimant's principal residence.
"Homestead property tax reimbursement" means payment of the difference between the amount of property tax or site fee constituting property tax due and paid in any year on any homestead, exclusive of improvements not included in the assessment on the real property for the base year, and the amount of property tax or site fee constituting property tax due and paid in the base year, when the amount paid in the base year is the lower amount; but such calculations shall be reduced by any current year property tax reductions or reductions in site fees constituting property taxes resulting from judgments entered by county boards of taxation or the State Tax Court.
"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.).
"Manufactured home" or "mobile home" means a unit of housing which:
(1) Consists of one or more transportable sections which 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, which 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 Langham Act (National Defense Housing), Pub.L.849, (42 U.S.C. s.1521 et seq.), as amended, which acquired a National Defense Housing Project pursuant to that act.
"Income" means income as determined pursuant to P.L.1975, c.194 (C.30:4D-20 et seq.).
"Principal residence" means a homestead actually and continually occupied by an eligible claimant as his or her 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 the general property tax due and paid as set forth in this section, on a homestead, but does not include special assessments and interest and penalties for delinquent taxes. For the sole purpose of qualifying for a benefit under P.L.1997, c.348 (C.54:4-8.67 et seq.), property taxes paid by June 1 of the year following the year for which the benefit is claimed will be deemed to be timely paid.
"Site fee constituting property tax" means 18 percent of the annual site fee paid or payable to the owner of a mobile home park.
"Tax year" means the calendar year in which a homestead is assessed and the property tax is levied thereon and it means the calendar year in which income is received or accrued.
(cf: P.L.2012, c.17, s.431)
2. This act shall take effect immediately.
STATEMENT
This bill revises homestead property tax reimbursement eligibility requirements for certain claimants who relocate their existing homestead to another homestead within the same municipality after initially qualifying for the benefit.
Under current law, an eligible claimant must have paid property taxes directly, or through rent, on any homestead or rental unit used as a principal residence in this State for at least 10 consecutive years, at least three of those as owner of the property for which a homestead property tax reimbursement is sought, prior to the date that an application for a homestead property tax reimbursement is filed. The law allows an eligible claimant who moves to another New Jersey homestead after initially qualifying to resume eligibility to receive a reimbursement in connection with the new home, but only beginning the second full tax year after the move.
This bill shortens the time that must elapse between a move and the resumption of benefits for eligible claimants who relocate within the same municipality. The bill provides that, after initially qualifying, an eligible claimant who moves from one homestead to another homestead of equal or lesser value that is located within the same municipality as the homestead for which the initial eligibility was established and that is not new construction will be allowed to resume eligibility to receive a homestead property tax reimbursement for the first full tax year following the eligible claimant's move.
The bill makes similar modifications to the base year on which property tax reimbursements are based. The bill provides that for eligible claimants who move from one homestead to another homestead of equal or lesser value that is located within the same municipality as the homestead for which the initial eligibility was established and that is not new construction, the base year on which reimbursements will be based will be the tax year immediately preceding the first full tax year during which the claimant resides in the new homestead.
Under the bill, the new base year can be no earlier than tax year 2014 and the first claim for which a person making a move within the same municipality can reestablish eligibility to receive, and file a claim for, a homestead property tax reimbursement is tax year 2015. Accordingly, the first payments to claimants who have reestablished their eligibility will be made in fiscal year 2016.
The bill takes effect immediately upon enactment.
