Bill Text: NJ A4706 | 2024-2025 | Regular Session | Enrolled

New Jersey Assembly Bill 4706

Bill Title: Revises statutes implementing certain property tax relief programs pursuant to recommendations promulgated by Stay NJ Task Force.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Passed) 2024-11-01 - Approved P.L.2024, c.88. [A4706 Detail]

Download: New_Jersey-2024-A4706-Enrolled.html

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C.54:4-8.75p1

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C.54:4-8.67

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C.54:4-8.63a

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C.54:4-8.75p2

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C.54:4-8.57 &

C.54:4-8.67

P.L. 2024, CHAPTER 88, approved November 1, 2024

Assembly, No. 4706 (First Reprint)

An Act concerning the Stay NJ property tax benefit program and amending and supplementing various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.2023, c.75 (C.54:4-8.75b) is amended to read as follows:

2. As used in this act:

"ANCHOR" means the Affordable New Jersey Communities for Homeowners and Renters Property Tax Relief Program.

"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.

"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.

"Eligible claimant" means ¹[an individual] a State resident¹ who is 65 or more years of age on or before December 31, 2024 or who is 65 or more years of age on or before December 31 of any subsequent benefit year, who is the owner for at least one full tax year of a homestead in this State on or after [July 1, 2024] December 31, 2023 and any subsequent benefit year, and who has [gross] income for the prior tax year that is less than $500,000.

["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.]

"Homestead" means:

a. 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;

b. 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; or

c. 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; or a mutual housing corporation.

"Homestead property tax reimbursement" means the property tax benefit provided pursuant to P.L.1997, c.348 (C.54:4-8.67 et seq.).

"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.).

"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., before the application of any authorized exclusion or deduction, except also including: interest income excluded from taxation pursuant to N.J.S.54A:6-14; pension and annuity income excluded from taxation pursuant to N.J.S.54A:6-10; income derived from distributions from or roll overs to a Roth IRA excluded from taxation pursuant to N.J.S.54A:6-28; other retirement income excluded from taxation pursuant to N.J.S.54A:6-15; and Social Security income excluded from taxation pursuant to N.J.S.54A:6-2, as self-reported by the homeowner.

"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, (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 an eligible claimant as the eligible claimant's permanent residence, including a homestead on which an eligible claimant made one or more payments in lieu of taxes to the municipality in which the homestead is located, as distinguished from a vacation home, property owned and rented or offered for rent by the eligible claimant, and other secondary real property holdings.

"Property tax" means the general property tax due and payable by the owner of a homestead, based on an assessment made by the municipality upon real property on an ad valorem basis on land and improvements, and shall include payments in lieu of taxes.

"State resident" or "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.

"Stay NJ property tax credit" means a property tax credit [in the amount of 50 percent of] applied to an eligible claimant's property tax bill in accordance with the provisions of the "Stay NJ Act," P.L.2023, c.75 (C.54:4-8.75a et al.).

"Task force" means the Stay NJ Task Force established pursuant to section 18 of P.L.2023, c.75 (C.54:4-8.75o).

"Tax year" or "taxable year" means the prior calendar year, January 1 through December 31, in which a homestead is assessed for property taxation and the property tax is levied thereon, and paid.

"Tax year quarter" means a three-month period of a tax year consisting of January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31.

(cf: P.L.2023, c.75, s.2)

2. Section 3 of P.L.2023, c.75 (C.54:4-8.75c) is amended to read as follows:

3. a. (1) There is established the Stay NJ property tax credit program. The director shall administer the Stay NJ property tax credit that shall provide to an eligible claimant a property tax credit in the amount of 50 percent of the property tax [paid for] billed to the eligible claimant's principal residence in the prior tax year, except that the amount of the credit ¹, together with the combined amount of the ANCHOR rebate and the homestead property tax reimbursement received by the eligible claimant for the tax year,¹ shall not exceed the maximum amount allowable for the tax year pursuant to subsection c. of this section ¹[, or the combined amount of the ANCHOR rebate and the homestead property tax reimbursement received by the eligible claimant for the tax year]¹.

(2) ¹Nothing in this section shall be deemed to limit the amount of the homestead property tax reimbursement or ANCHOR rebate that shall be paid to an eligible claimant for any tax year in which the combined value of the homestead property tax reimbursement and ANCHOR rebate exceeds the amount of the maximum allowable Stay NJ property tax credit, as determined pursuant to subsection c. of this section.

(3)¹ A Stay NJ property tax credit for an eligible claimant who is a tenant shareholder in a cooperative, mutual housing organization, or continuing care retirement community shall be based on the eligible claimant's proportionate share of the property taxes assessed against that real property that are attributable to the eligible claimant's unit. Property tax credits shall be allowed pursuant to this section in relation to the property taxes [paid] billed or allocable to an eligible claimant who has more than one homestead in a tax year, but the aggregate amount of the property taxes or property tax credits claimed shall not exceed the total proportionate amounts of property taxes assessed and levied against or allocable to each homestead for the proportion of the tax year quarter to which the taxpayer occupies it as the taxpayer's principle residence.

b. The amount of the Stay NJ property tax credit shall be calculated for each eligible claimant by the director, and shall be paid [to the tax collector of the municipality in which the eligible claimant's homestead is located pursuant to] in accordance with the provisions of [subsection a. of] section 5 of P.L.2023, c.75 (C.54:4-8.75e).

c. [Notwithstanding the provisions of P.L.2023, c.75 (C.54:4-8.75a et al.) that require an annual property tax credit in the amount of 50 percent of the property tax paid on an eligible claimant's homestead, the] The maximum amount to be credited to an eligible claimant shall be $6,500 [in] for tax year 2026 [, if there is no delay in implementation as may occur pursuant to section 19 of P.L.2023, c.75 (C.54:4-8.75p). For every tax year after the year in which the Stay NJ property tax credit program is first implemented,] ; and for each tax year thereafter, the maximum amount to be credited to an eligible claimant shall be increased based on the annual percentage increase in the average residential property tax bill as shall be computed by the Director of the Division of Local Government Services in the Department of Community Affairs.

[An] d. Except as otherwise provided in subsection a. of section 5 of P.L.2023, c.75 (C.54:4-8.75e), an eligible claimant shall be entitled to a Stay NJ property tax credit annually, on proper claim being made therefor to the director. Notwithstanding any provision of P.L.2023, c.75 (C.54:4-8.75a et al.) to the contrary, the amount of property taxes used to determine the amount of the Stay NJ property tax credit shall not be reduced by the amount of the deductions taken by an eligible claimant pursuant to P.L.1963, c.171 (C.54:4-8.10 to 54:4-8.23) and P.L.1964, c.255 (C.54:4-8.40 to 54:4-8.45 et al.). The surviving spouse of a deceased resident of this State who during his or her life received a Stay NJ property tax credit shall be entitled, so long as the surviving spouse does not remarry, remains a resident in the same homestead with respect to which the Stay NJ property tax credit was granted, and is an eligible claimant, to the same Stay NJ property tax credit, upon the same conditions, with respect to the same homestead.

(cf: P.L.2023, c.75, s.3)

3. Section 4 of P.L.2023, c.75 (C.54:4-8.75d) is amended to read as follows:

4. a. Not later than [July] February 1, 2025, [if there is no delay in implementation as may occur pursuant to section 19 of P.L.2023, c.75 (C.54:4-8.75p),] the director shall promulgate a combined single application form consistent with the requirements of section 6 of P.L.2023, c.75 (C.54:4-8.75f) and the recommendations of the Stay NJ Task Force established pursuant to section 18 of P.L.2023, c.75 (C.54:4-8.75o) [,] that shall be available on and after that date to be used by State residents to apply for the Stay NJ property tax credit, the ANCHOR property tax rebate, and the homestead property tax reimbursement program. Applications shall be accepted by the Director of the Division of Taxation from February 1 through October 31 of each year. State residents seeking property tax benefits under those programs shall complete the entire application and file it with the director. The director shall determine [which property tax benefit program or programs provide the greatest benefit for the applicant] the amount of the Stay NJ property tax credit, ANCHOR rebate, and homestead property tax reimbursement, as applicable, provided to each applicant pursuant to the requirements of subsection b. of this section.

b. [Notwithstanding any provision of law, rule, or regulation to the contrary, an applicant shall only be entitled to the greater of:

(1) the amount of the Stay NJ property tax credit; or

(2) the combined amount of the ANCHOR property tax rebate and the homestead property tax reimbursement.] The director shall calculate the amount of each property tax benefit provided to an eligible claimant for each tax year in the following manner:

(1) if the eligible claimant qualifies for an ANCHOR rebate, the director shall first determine the amount of the eligible claimant's ANCHOR rebate for the tax year, the full amount of which shall be paid to the eligible claimant;

(2) if the eligible claimant qualifies for a homestead property tax reimbursement, the director shall next determine the amount of the eligible claimant's homestead property tax reimbursement for the tax year, the full amount of which shall be paid to the eligible claimant;

(3) if the eligible claimant qualifies for a Stay NJ property tax credit, the director shall then determine the amount of the eligible claimant's Stay NJ property tax credit for the tax year, of which the eligible claimant shall be paid an amount equal to 50 percent of the property taxes billed to the eligible claimant, up to the maximum amount permitted under section 3 of P.L.2023, c.75 (C.54:4-8.75c), less the amounts paid to the eligible claimant pursuant to paragraphs (1) and (2) of this subsection.

c. [With respect to the homestead property tax reimbursement program, the base year of an eligible claimant who receives a Stay NJ property tax credit instead of a homestead property tax reimbursement shall remain unchanged, notwithstanding the number of years that the eligible claimant receives a Stay NJ property tax credit instead of a homestead property tax reimbursement.] (Deleted by amendment, P.L. , c. (C. ) (pending before the Legislature as this bill)

d. (1) The director shall determine the amount of the Stay NJ property tax credit that shall be provided for each eligible claimant pursuant to P.L.2023, c.75 (C.54:4-8.75a et al.) based upon the information provided by the eligible claimant in the application or from any other information as may be available to the director and shall notify the applicant ¹[, not later than October 15 of each year,]¹ of the determined amount, in [such manner as the director may deem appropriate] writing ¹and at such time as the director may deem appropriate¹ , together with a detailed calculation of the amount that the eligible claimant is entitled to receive pursuant to subsection b. of this section.

(2) The format of the written information to be provided by the director shall be determined by the director and shall, at a minimum, display: (a) the amount of the eligible claimant's property tax bill for the tax year; (b) the amount of the ANCHOR rebate, homestead property tax reimbursement, and Stay NJ property tax credit, as applicable, that the eligible claimant is entitled to receive; and (c) the actual property taxes that the eligible claimant shall pay in the tax year after any property tax credits are applied against the eligible claimant's property tax bill.

(3) 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 Stay NJ property tax credit unless the applicant, within 90 days after having been given notice of such determination, shall apply to the director for a hearing, or unless the director shall redetermine the same. After such hearing the director shall give notice of the final determination to the applicant.

e. An eligible claimant for a Stay NJ property tax credit authorized under P.L.2023, c.75 (C.54:4-8.75a et al.) who is aggrieved by any decision, order, finding, or denial by the director of all or part of that eligible claimant's Stay NJ property tax credit 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 provided by this section shall be the exclusive remedy available to an applicant for review of a decision of a director in respect to the determination of all or a part of a Stay NJ property tax credit authorized under P.L.2023, c.75 (C.54:4-8.75a et al.).

(cf: P.L.2023, c.75, s.4)

4. Section 5 of P.L.2023, c.75 (C.54:4-8.75e) is amended to read as follows:

5. a. (1) The State Treasurer, upon certification of the director and upon warrant of the Director of the Division of Budget and Accounting, shall pay and distribute, on a quarterly basis, beginning February 1, 2026, the amount of a Stay NJ property tax credit payable under P.L.2023, c.75 (C.54:4-8.75a et al.) that is claimed for the tax year by check or direct deposit payable to the eligible claimant, or by a credit against the property tax bill of the eligible claimant payable to the tax collector of the municipality in which each eligible claimant whose credit is approved by the director is located; provided, however, a credit due to an eligible claimant who claimed a Stay NJ property tax credit pursuant to section 3 of P.L.2023, c.75 (C.54:4-8.75c), and whose homestead is a unit in a cooperative, mutual housing corporation, or continuing care retirement community, shall be paid directly to the eligible claimant by the State Treasurer by check or direct deposit. [A] In any year that the director determines that a Stay NJ payment shall be made as a credit, a Stay NJ property tax credit allowed by the director to an eligible claimant who claimed a Stay NJ property tax credit pursuant to section 3 of P.L.2023, c.75 (C.54:4-8.75c), 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 property tax collector for the homestead of an eligible claimant as the eligible claimant shall identify, in four equal installments after the application for the credit has been approved. The State Treasurer shall pay and distribute Stay NJ property tax credit payments to each municipal tax collector or eligible claimant, as applicable, on a quarterly basis at least 10 days prior to the statutory due date for each property tax year quarter payment. Notice of payments of Stay NJ credit installments shall be provided to the eligible claimant and the appropriate local tax collector.

(2) Notwithstanding the provisions of this section to the contrary, for the first year in which the Stay NJ property tax program is implemented, each Stay NJ property tax credit awarded an eligible claimant shall be paid and distributed by check or direct deposit.

b. Each municipal tax collector who applies a Stay NJ property tax credit to the property tax account of the homestead of an eligible claimant pursuant to this section shall provide timely notice thereof to the eligible claimant and to any mortgagee or servicing organization noted on the property tax account that requires a mortgagor to make property tax payments to an escrow account, for the purpose of encouraging the escrow account property tax requirements to be promptly adjusted to the benefit of the property tax taxpayer on account of Stay NJ property tax credit payments.

(cf: P.L.2023, c.75, s.5)

5. Section 6 of P.L.2023, c.75 (C.54:4-8.75f) is amended to read as follows:

6. a. (1) Notwithstanding the provisions of section 6 of P.L.1990, c.61 (C.54:4-8.62) and section 3 of P.L.1997, c.348 (C.54:4-8.70) concerning the form and deadline of applications for the ANCHOR rebate program and the homestead property tax reimbursement, the director shall promulgate, not later than February 1, 2025, a single combined application form to be used by State residents to apply for the ANCHOR rebate program, the homestead property tax reimbursement program, and the Stay NJ property tax credit in accordance with the recommendations of the Stay NJ Task Force established pursuant to section 18 of P.L.2023, c.75 (C.54:4-8.75o).

[The] (2) To the extent practicable, the single combined application shall resemble the form and manner of the application for the homestead property tax reimbursement program, as created pursuant to section 3 of P.L.1997, c.348 (C.54:4-8.70), except that the single combined application form shall, at a minimum, require the applicant to submit information about his or her age, annual income, including the amount of Social Security payments received by the applicant, homestead property address, as well as any other information determined necessary by the director in order to approve or disapprove the applicant's participation in those programs.

(3) The combined application form shall also advise the applicant that the director shall determine the eligibility of an applicant to receive an ANCHOR rebate, a homestead property tax reimbursement, or a Stay NJ property tax credit, or any combination thereof. The director shall, for good cause shown, extend the time of any applicant to file an application for a reasonable period, and in such case, the application shall be processed and payment of an ANCHOR rebate, homestead property tax reimbursement, or a Stay NJ property tax credit, or any combination thereof, made in accordance with the procedures established in the case of applications timely filed, except the date for the payment may be delayed for a reasonable period. If an applicant or an applicant's spouse has filed an application for an extension of time to file a gross income tax return, the date by which the applicant shall file an application may, in the discretion of the director, be extended for a reasonable period, and the date for the payment of an ANCHOR rebate, homestead property tax reimbursement, or a Stay NJ property tax credit, or any combination thereof, may be delayed for a reasonable period. A State resident seeking property tax benefits under any of those programs shall accurately complete the entire application and file it with the director.

(4) For purposes of this subsection, in order to establish good cause to extend the time of an eligible claimant to file an application, the eligible claimant shall provide to the director either medical evidence, such as a doctor's certification, that the claimant was unable to file the claim by the date prescribed by the director because of illness or hospitalization, or evidence that the applicant attempted to file a timely application. Except as may be established by medical evidence or inability to file a claim, good cause shall not be established due to a claimant not having received an application from the director.

b. Upon the approval of applications by the director, the director shall prepare lists of individuals entitled to receive a Stay NJ property tax credit, together with the respective amounts due each eligible claimant and shall forward such 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 office of the tax collector and tax assessor of a municipality with respect to applications, claims, and allowances for Stay NJ property tax credits.

c. If an application contains a claim for a Stay NJ property tax credit that contains incorrect information from the claimant or is based upon incorrect or insufficient information from which the director is to determine and approve the claim, the director may determine the eligibility of the claimant for a Stay NJ property tax credit and the correct amount of a Stay NJ property tax credit from such other information as may be available to the director.

d. In the case of an eligible claimant 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 tax year.

(cf: P.L.2023, c.75, s.6)

6. Section 10 of P.L.2023, c.75 (C.54:4-8.75j) is amended to read as follows:

10. a. Except as provided in subsection b. of this section, a person who receives a Stay NJ property tax credit otherwise authorized under this act but which has been paid in error and which is recoverable by the director, and fails to return the payment within 45 days of receiving notice from the director that such payment was erroneous, shall pay, in addition to the amount of the erroneous credit, interest at the rate prescribed in R.S.54:49-3, assessed for each month or fraction thereof, compounded annually at the end of each year, from the date next following the 45th day after receiving the notice from the director that such payment was erroneous until the date of the return of the erroneous payment.

b. A person who is 65 years of age or older at the close of the tax year, or who is allowed to claim a personal deduction as a blind or disabled taxpayer pursuant to subsection b. of N.J.S.54A:3-1, who receives notice from the director pursuant to this section, shall within 45 days after receiving that notice, be permitted enter into an installment payment agreement for a reasonable period of time that will enable the person to completely satisfy the amount paid in effort and without the assessment of interest thereon.

c. Except as an installment payment agreement permitted pursuant to subsection b. of this section, a Stay NJ [Property Tax [Credit] property tax credit paid as a result of misrepresentation or paid in error and any penalties and interest imposed thereon by this act, shall be payable to and recoverable by the director in the same manner as a deficiency with respect to the payment of State tax in accordance with the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.

(cf: P.L.2023, c.75, s.10)

7. Section 16 of P.L.2023, c.75 (C.54:4-8.75m) is amended to read as follows:

16. a. The Department of the Treasury shall establish a dedicated, nonlapsing account for the purpose of providing property tax benefits to homestead owners [and tenants] 65 years of age or older [on their principal residences, whether owned or rented]. All moneys deposited into the account shall be used for the payment of property tax benefits in accordance with subsection c. of this section.

b. (1) There is appropriated to the account established by subsection a. of this section in State Fiscal Year 2024, $100,000,000 for the purpose of providing property tax benefits in accordance with subsection c. of this section, subject to the approval of the Director of the Division of Budgeting and Accounting in the Department of the Treasury.

(2) The annual appropriations act for State Fiscal Year 2025 shall include an appropriation to the account established by subsection a. of this section, in an amount not to exceed $200,000,000 for the purpose of providing property tax benefits in accordance with subsection c. of this section.

(3) The annual appropriations act for State Fiscal Year 2026 shall include an appropriation to the account established by subsection a. of this section, in an amount not to exceed $300,000,000 for the purpose of providing property tax benefits in accordance with subsection c. of this section.

c. Beginning in State Fiscal Year 2026, moneys in the account established by subsection a. of this section shall be appropriated solely for the Stay NJ property tax credit program established pursuant to section 3 of P.L.2023, c.75 (C.54:4-8.75c).

(cf: P.L.2023, c.75, s.16)

8. Section 17 of P.L.2023, c.75 (C.54:4-8.75n) is amended to read as follows:

17. The [amendatory and supplementary provisions of] appropriation of funds necessary to support the provision of property tax relief under the Stay NJ property tax credit program as provided under sections 1 through 16 of P.L.2023, c.75 (C.54:4-8.75a et al.), as amended and supplemented by P.L. , c. (C. ) (pending before the Legislature as this bill), shall not supersede, impact, or interfere with any of the following:

a. the full funding in each State fiscal year necessary to satisfy the requirement in Article VIII, Section IV, paragraph 1 of the New Jersey Constitution that the Legislature provide for the maintenance and support of a thorough and efficient system of free public schools for the instruction of children in the State between the ages of five and 18 years;

b. the full funding of the veterans' $250 property tax deduction, required to be provided to eligible veterans pursuant to Article VIII, Section I, paragraph 3 of the New Jersey Constitution;

c. the full funding of the senior citizens' and disabled persons' $250 property tax deduction authorized by Article VIII, Section I, paragraph 4 of the New Jersey Constitution;

d. the full payment of the contributions required by law to be made to the State-administered retirement systems; and

e. the maintenance of a budgetary surplus target of no less than 12 percent of total [expenditures] appropriations from the General

Fund and the Property Tax Relief Fund in a given State fiscal year.

(cf: P.L.2023, c.75, s.17)

9. Section 18 of P.L.2023, c.75 (C.54:4-8.75o) is amended to read as follows:

18. a. There is established in the Department of the Treasury the Stay NJ Task Force. The purpose of the task force shall be to develop recommendations for establishing and funding uniform property tax relief to all senior citizen homeowners [and tenants] making under $500,000 per year. The task force shall review all of the existing property tax relief programs and present, to the Governor and the Legislature, no later than May 30, 2024, a report containing recommendations about how to restructure, and consolidate, the various property tax relief programs into one, streamlined, property tax relief program that would deliver to senior citizens having an annual gross income under $500,000 an annual property tax benefit, which for homeowners shall be in the amount of 50 percent of the property tax bill on their principal residence, beginning with the tax year 2026, which commences on January 1 of that year. The report shall include recommendations concerning system improvements that both the State and local government units would need to implement the Stay NJ property tax credit program and the funding required to establish and maintain such system improvements. The task force shall provide recommendations that have a target implementation date of January 1, 2026.

b. The task force shall be comprised of six members. The membership of the task force shall be appointed as follows:

The State Treasurer, or the State Treasurer's designee, who shall serve ex officio;

The Commissioner of Community Affairs, or the commissioner's designee, who shall serve ex officio;

One public member, who shall be appointed by the Governor, who may be an employee of the Executive Branch of State government;

One public member who shall be appointed by the Governor upon the recommendation of the Senate President;

One public member who shall be appointed by the Governor upon the recommendation of the Speaker of the General Assembly; and

One public member who shall be appointed by the Governor upon the joint recommendation of the Senate President and the Speaker of the General Assembly.

The task force shall have a chairperson and a vice chairperson designated by the Governor. The Governor shall designate as the chairperson one of the cabinet members of the task force, or their designee, or the public member appointed by the Governor. The Governor shall designate as the vice chairperson a public member upon the joint recommendation of the Senate President and the Speaker of the General Assembly. The Governor shall also appoint a secretary. There shall be required affirmative vote of four out of the six members of the task force for an action to be taken or a decision made.

The task force shall organize as expeditiously as practicable following the appointment of all its public members. Appointments to the task force shall be made in an expeditious manner to ensure the task force has sufficient time to make the recommendations required by this section in order to facilitate implementation of the Stay NJ program on or before the dates set forth in P.L.2023, c.75 (C.54:4-8.75a et al.).

c. The Governor shall appoint an executive director, who shall be employed by the task force and paid by the task force from funds appropriated for its use pursuant to P.L.2023, c.75 (C.54:4-8.75a et al.).

The Department of the Treasury shall provide staff support to the task force. The task force shall be entitled to call to its assistance and avail itself of the services of the employees of any State, county, or municipal department, board, bureau, commission, or agency as the task force may require and as may be available to the task force for its purposes. The task force may consult with experts or other knowledgeable individuals in the public or private sector on any aspect of its mission outlined in this section; provided, however, any services, professional or otherwise, that the task force requires shall be procured by the Department of the Treasury.

No later than May 30, 2024, the task force shall prepare and submit to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, a report detailing the task force's recommendations as required by this section, including any recommendations for legislative or regulatory action that are necessary to effectuate the recommendations.

d. Beginning September 1, 2023 and on the first day of each calendar quarter thereafter, the executive director shall submit to the presiding officer of each House of the Legislature, and to the chairs of the Senate Budget and Appropriations Committee and the Assembly Budget Committee, a status update on the work undertaken by the task force during the previous calendar quarter. The presiding officer of each House of the Legislature, and the chairs of the Senate Budget and Appropriations Committee and the Assembly Budget Committee, may request that specific information be included in the quarterly status updates required by this subsection concerning the work of the task force and the formulation of any recommendations it may make for the streamlining of the various property tax relief programs for senior citizens provided by the State into one, uniform program.

e. [The] Following the issuance of its report, the task force shall [disband on the 30th day after the enactment of legislation in response to the Stay NJ Task Force pursuant to section 19 of P.L.2023, c.75 (C.54:4-8.75p)] continue to meet not less than once per calendar quarter for the purpose of assisting the Director of the Division of Taxation in the Department of the Treasury in developing a process to implement a property tax credit for the payment of benefits under the homestead property tax reimbursement program and the Stay NJ property tax credit program, and collecting information from local officials regarding how to effectively implement property tax credits in future years for those programs, as required pursuant to the provisions of section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2023, c.75, s.18)

10. Section 19 of P.L.2023, c.75 (C.54:4-8.75p) is amended to read as follows:

19. After the Legislature and the Governor review the Stay NJ Task Force's recommendations and determine such recommendations are appropriate, the Legislature shall consider and approve, and the Governor shall enact, the legislation recommended by the Stay NJ Task Force, or legislation substantially similar to the legislation recommended by the task force, regarding the objectives set forth in section 18 of P.L.2023, c.75 (C.54:4-8.75o) not later than 90 days prior to [July] February 1, 2025, the date by which the State Treasurer shall be required to produce the application for the Stay NJ program in [2026] 2025 pursuant to section 4 of P.L.2023, c.75 (C.54:4-8.75d). [Notwithstanding the provisions of this act or any law to the contrary, if the Legislature and the Governor fail: (1) to enact legislation following the release of the task force's report or (2) to enact legislation that the Governor and Legislature deem appropriate which otherwise addresses the issues the task force is required to consider pursuant to section 18 of P.L.2023, c.75 (C.54:4-8.75o), then promulgation of a combined single application form shall not be required on or before the date set forth in section 4 of P.L.2023, c.75 (C.54:4-8.75d) and the implementation of the Stay NJ property tax credit program shall be delayed until the enactment of such legislation.] If legislation is enacted after the 90th day preceding [July] February 1, 2025, then promulgation of a combined single application form shall be required no earlier than the 91st day next following the enactment of such legislation and the implementation of the Stay NJ property tax credit program shall begin no earlier than the first tax year quarter beginning no less than six months following the promulgation of the combined single application form.

(cf: P.L.2023, c.75, s.19)

11. (New section) a. After the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Director of the Division of Taxation in the Department of the Treasury, in consultation with the Director of the Division of Local Government Services in the Department of Community Affairs and local officials, shall develop a process to implement a property tax credit for the payment of benefits under the homestead property tax reimbursement program and the Stay NJ property tax credit program. As a part of that process, the Director of the Division of Taxation shall collect information from local officials regarding how to effectively implement property tax credits in future years for those programs. The collection of such information may include, but shall not be limited to, the administration of a standardized survey data collection instrument.

b. Notwithstanding the provisions of subsection a. of this section regarding the development of a process for implementing property tax credits, the Director of the Division of Taxation shall also determine the feasibility of allowing eligible claimants for homestead property tax reimbursement and Stay NJ property tax credits to choose to continue to receive annual checks or direct deposits into a bank account instead of a property tax credit.

12. Section 1 of P.L.1990, c.61 (C.54:4-8.57) is amended to read as follows:

1. Sections 1 through 10 of P.L.1990, c.61 (C.54:4-8.57 through 54:4-8.66) and sections 3, 14 through 16, 18 and 19 of P.L.1999, c.63 (C.54:4-8.58a and C.54:4-8.66a through C.54:4-8.66e) shall be known and may be cited as the "ANCHOR Homestead Property Tax Credit Act" [; provided, however, that on and after the first day of the first tax year quarter in which the Stay NJ property tax credit program is implemented, those sections shall be known and may be cited as the "Stay NJ Act."].

(cf: P.L.2023, c.75, s.20)

13. Section 2 of P.L.1990, c.61 (C.54:4-8.58) is amended to read as follows:

2. As used in sections 2 through 10 of P.L.1990, c.61 (C.54:4-8.58 through 54:4-8.66) and sections 3 and 14 through 16 of P.L.1999, c.63 (C.54:4-8.58a and 54:4-8.66a through C.54:4-8.66c), and where the context requires, as may be applicable to the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) Property Tax Relief Program:

"Annualized rent" means, for tax years 2004 and thereafter, the rent paid by the claimant during the tax year for which the homestead rebate is being claimed, and if paid for a lease term covering less than the full tax year, the actual rent paid for the days during the term of the lease of the homestead proportionalized as if the term of the lease had been for 365 days of the tax year;

"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 which 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;

"Homestead" means:

a. (1) a dwelling house and the land on which that dwelling house is located which 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 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 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 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 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 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;

"Rent constituting property taxes" means 18% of the rent paid by the homestead rebate claimant during the tax year on a unit of residential rental property which constitutes the claimant's homestead, and in the case of a manufactured home or mobile home in a mobile home park which constitutes the claimant's homestead means 18% of the site fee paid by the claimant during the tax year to the owner of the mobile home park. Provided however, that for tax year 2004 and for each tax year thereafter, rent constituting property taxes shall equal 18% of annualized rent, and in the case of a manufactured home or mobile home in a mobile home park rent constituting property taxes shall equal 18% of a similarly annualized site fee;

"Resident" means an individual:

a. who is domiciled in this State, unless he 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

"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;

"Residential shareholder in a cooperative or mutual housing corporation" means a tenant or holder of a membership interest in that cooperative or corporation, whose residential unit therein constitutes the tenant or holder's domicile and principal residence, and who may deduct real property taxes for purposes of federal income tax pursuant to section 216 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.216; and

"Tax year" means the calendar year in which property taxes are due and payable.

(cf: P.L.2018, c.11, s.10)

14. Section 3 of P.L.1999, c.63 (C.54:4-8.58a) is amended to read as follows:

3. a. For tax year 2003, the director shall determine the amount of the homestead rebate that shall be paid to each claimant pursuant to P.L.1990, c.61 (C.54:4-8.57 et al.), and P.L.1999, c.63 (C.54:4-8.58a et al.), as amended by P.L.2004, c.40, based upon the information provided by the individual applicant in the application for either a NJ SAVER rebate or for a homestead rebate, or from any other information as may be available to the director in order that each individual applicant shall be paid the homestead rebate that may be allowed to the claimant pursuant to sections 3 through 5 of P.L.1990, c.61 (C.54:4-8.59 through 54:4-8.61), as the director determines is appropriate.

b. (1) For tax year 2003, a resident of this State who has paid property taxes for the tax year on a homestead that is owned as such, who has filed an application for an NJ SAVER rebate pursuant to the provisions of P.L.1999, c.63 (C.54:4-8.58a et al.), or pursuant to that act as amended and supplemented by P.L.2004, c.40, and who meets the prerequisites for an NJ SAVER rebate at 12:01 A.M. on October 1, 2003 for that tax year, shall be considered to have applied for a homestead rebate and shall be allowed a homestead rebate instead of an NJ SAVER rebate for that tax year pursuant to P.L.1990, c.61 (C.54:4-8.57 et al.), and P.L.1999, c.63 (C.54:4-8.58a et al.), as amended by P.L.2004, c.40. An application for an NJ SAVER rebate shall be allowed as a homestead rebate for a homestead the title to which is held by a partnership, to the extent of the applicant's interest as a partner therein, and by a guardian, trustee, committee, conservator or other fiduciary for any individual who would otherwise be eligible for an NJ SAVER rebate. An application for an NJ SAVER rebate shall not be allowed for a homestead, the title to which is held partially or entirely by a corporate entity of any type, except as otherwise specifically allowed for applications from residents of properties owned by continuing care retirement community, cooperative or mutual housing corporations.

(2) For tax year 2004 and tax year 2005, any rebates applied for and paid pursuant to P.L.1990, c.61 (C.54:4-8.57 et al.), and P.L.1999, c.63 (C.54:4-8.58a et al.), as amended and supplemented by P.L.2004, c.40, shall be homestead rebates.

(3) For tax year 2006 and for tax years thereafter, any homestead benefit applied for and provided pursuant to this act shall be a rebate or credit, as annually determined by the Director of the Division of Taxation.

(4) After the effective date of P.L. , c (C. ) (pending before the Legislature as this bill), and with respect to the payment of ANCHOR rebates to eligible claimants, payments to eligible claimants in calendar year 2026 shall be based on property taxes billed for tax year 2025. Thereafter, payments to eligible claimants in any succeeding benefit year shall be based on the immediately preceding tax year.

(cf: P.L.2007, c.62, s.22)

15. (New section) Notwithstanding the provisions of any other law to the contrary, after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), ANCHOR rebates shall be paid to eligible claimants on or before September 15 of each tax year annually, whether such rebates are to be paid by check, direct deposit, or as a credit on the eligible claimant's property tax bill.

16. 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] P.L.1997, c.348 (C.54:4-8.67 et seq.):

"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 receives a Stay NJ

property tax credit in lieu of a homestead property tax reimbursement pursuant to section 4 of P.L.2023, c.75 (C.54:4-8.75d), the base year of that eligible claimant shall remain unchanged.

"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.).

"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 all or any part of the year for which a homestead property tax reimbursement under this act is claimed.

"Eligible claimant" means a person who:

is 65 or more years of age on or before December 31 of any tax year for which a homestead property tax reimbursement is sought, 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 for the entire tax year for which a homestead property tax reimbursement is sought;

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 tax years 2010 through 2021 pursuant to section 9 of P.L.1997, c.348 (C.54:4-8.68);

has an annual income of $150,000 or less in tax year 2022, 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);

has, for at least three calendar years, including the entire tax year for which a homestead property tax reimbursement is sought, owned and resided in 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.

"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.).

"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., before the application of any authorized exclusion or deduction, except also including: interest income excluded from taxation pursuant to N.J.S.54A:6-14; pension and annuity income excluded from taxation pursuant to N.J.S.54A:6-10; income derived from distributions from, or roll over to, a Roth IRA excluded from taxation pursuant to N.J.S.54A:6-28; other retirement income excluded from taxation pursuant to N.J.S.54A:6-15; and Social Security income excluded from taxation pursuant to N.J.S.54A:6-2, as self-reported by the homeowner.

"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

(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.

["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, 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), 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.2023, c.75, s.13)

17. Section 3 of P.L.1997, c.348 (C.54:4-8.70) is amended to read as follows:

3. [An] a. For tax years before the implementation of the single combined application required pursuant to section 6 of P.L.2023, c.75 (C.54:4-8.75f), an application for a homestead property tax reimbursement hereunder shall be filed with the director annually beginning April 1 and ending October 31 of the year following the year for which the claim is being made and shall reflect the prerequisites for a homestead property tax reimbursement on December 31 of the tax year for which the claim is being made; provided, however, that the director may, by rule, designate a later date as the date by which the application shall be filed or waive the requirement for filing an annual application for any year or years subject to any limitations and conditions the director may deem appropriate. The application shall be on a form prescribed by the director and provided for the use of applicants hereunder. Each applicant making a claim for a homestead property tax reimbursement under this act shall provide, if required by the director, to the director a copy of his or her current year property tax bill or current year site fee bill on the homestead constituting that person's principal residence and a copy of his or her property tax bill for the base year or site fee bill for the base year on the same homestead, or other equivalent proof as permitted by the director.

It shall be the duty of every eligible claimant to inform the director of any change in his or her status or homestead which may affect his or her right to continuance of the homestead property tax reimbursement.

If an eligible claimant receives an additional homestead property tax reimbursement to which the claimant was not entitled or greater than the reimbursement to which the claimant was entitled, the director shall permit the claimant to enter into an installment payment agreement for a reasonable period of time that will enable the claimant to completely satisfy the amount of the reimbursement paid to which the claimant was not entitled. If the claimant does not enter into an installment payment agreement, the director may, in addition to all other available legal remedies, offset such amount against a gross income tax refund or amount due pursuant to P.L.1990, c.61.

b. For tax years on and after the implementation of the single combined application required pursuant to section 6 of P.L.2023, c.75 (C.54:4-8.75f), an application for a homestead property tax reimbursement hereunder shall be filed with the director annually, beginning February 1 and ending October 31of the year following the year for which the claim is being made, using the single combined application and in accordance with the requirements of section 6 of P.L.2023, c.75 (C.54:4-8.75f).

(cf: P.L.2017, c.370, s.1)

18. Section 4 of P.L.1997, c.348 (C.54:4-8.71) is amended to read as follows:

4. a. The director shall administer the homestead property tax reimbursement program. A payment for the homestead property tax reimbursement amount, as calculated by the director, shall be [mailed] paid, by check, direct deposit, or credit against the eligible claimant's property tax bill, to each person determined by the director to be an eligible claimant [under this act] pursuant to P.L.1997, c.348 (C.54:4-8.67 et seq.) and shall be made according to the following schedule: [on or before July 15, 1999 and July 15 annually thereafter, except that the payment of any homestead property tax reimbursement amount for an eligible claimant whose application is filed during the period May 1 through June 1 shall be mailed on or before September 1 annually. Provided further, however, that the payment of any homestead property tax reimbursement amount for an eligible claimant whose application is filed during a period after June 1 pursuant to an extended application deadline as may be designated by the director shall be mailed on or before such latter mailing date as the director may determine.]

(1) for applications received on or before May 1 of the tax year, the reimbursement amount shall be paid on or before July 15 of that tax year; and

(2) for applications received on or after May 1 of the tax year, the reimbursement amount shall be made on a rolling monthly basis.

b. All payments made pursuant to this section shall be appropriated from receipts in the Casino Revenue Fund.

(cf: P.L.2003, c.30, s.2)

19. (New section) The Director of the Division of Taxation in the Department of the Treasury is authorized to take any administrative action with respect to the Stay NJ program, P.L.2023, c.75 (C.54:4-8.75a et al.), the homestead property tax reimbursement program, P.L.1997, c.348 (C.54:4-8.67 et seq.), or the ANCHOR Property Tax Relief Program that may be necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

20. Section 3 of P.L.2021, c.371 (C.47:1B-3) is amended to read as follows:

3. a. The following exceptions shall apply to the requirement to redact, and the prohibition against the disclosure of, a home address pursuant to section 2 of P.L.2021, c.371 (C.47:1B-2) in accordance with section 2 of P.L.2015, c.226 (C.47:1-17), section 1 of P.L.1995, c.23 (C.47:1A-1.1), or section 6 of P.L.2001, c.404 (C.47:1A-5):

(1) Copies of voter registration files maintained in the Statewide voter registration system pursuant to section 2 of P.L.2005, c.145 (C.19:31-32) and maintained by the commissioner of registration in each county pursuant to R.S.19:31-3 shall be provided as redacted pursuant to section 2 of P.L.2021, c.371 (C.47:1B-2), except that copies of the files as unredacted pursuant thereto shall be provided to the following individuals, upon the individual's signing of an affidavit attesting to the individual's qualifying status pursuant hereto:

(a) the chairperson of the county or municipal committee of a political party, as appropriate under R.S.19:7-1, or a designee thereof, for distribution to any person authorized to serve as a challenger pursuant to R.S.19:7-1 or section 2 of P.L.2021, c.40 (C.19:15A-2), subject to the limitations in section 1 of P.L.1960, c.82 (C.19:7-6.1); and the unredacted copies may only be used for the purpose specified in R.S.19:7-5;

(b) a candidate, or a designee thereof, for distribution to a challenger appointed thereby pursuant to section 2 of P.L.2021, c.40 (C.19:15A-2) for the person's use in accordance with R.S.19:7-5;

(c) a candidate acting as a challenger pursuant to R.S.19:7-2 or the other person appointed thereunder, for use in accordance with R.S.19:7-5;

(d) any vendor, contractor, or organization carrying out a function of a county or of the State concerning the administration or conduct of elections; and

(e) upon order of a judge of the Superior Court after a finding that the unredacted copy is necessary to determine the merits of a petition filed in accordance with R.S.19:29-3, a person filing such petition or the respondent or both.

This paragraph shall apply to registry lists as described in section 2 of P.L.1947, c.347 (C.19:31-18.1).

(2) Other than as provided in subparagraphs (d) and (e) of paragraph (4) of this subsection, a document affecting the title to real property, as defined by N.J.S.46:26A-2, recorded and indexed by a county recording officer, or as otherwise held or maintained by the Division of Taxation, a county board of taxation, a county tax administrator, or a county or municipal tax assessor, that contains an address subject to redaction or nondisclosure consistent with this act, P.L.2021, c.371 (C.47:1B-1 et al.):

may instead or in addition include the redaction and nondisclosure of the names or other information of approved covered persons, as specified by the Director of the Division of Taxation, which redaction and nondisclosure may include masking of such names or other information, and

shall be provided as unredacted to the following persons when requested in such person's ordinary course of business:

(a) a title insurance company, a title insurance agent, or an approved attorney, as defined in section 1 of P.L.1975, c.106 (C.17:46B-1);

(b) a mortgage guarantee insurance company, as described in section 4 of P.L.1968, c.248 (C.17:46A-4);

(d) a registered title search business entity, as defined in section 4 of P.L.2021, c.371 (C.17:46B-1.1);

(e) a real estate broker, a real estate salesperson, a real estate broker-salesperson, a real estate salesperson licensed with a real estate referral company, or a real estate referral company, as such terms are defined in R.S.45:15-3; and

(f) an individual or business that has made or received an offer for the purchase of real estate and real property, or any portion thereof, to or from a covered person whose address is subject to redaction or nondisclosure pursuant to section 2 of P.L.2021, c.371 (C.47:1B-2).

This act shall not be construed to prohibit a county recording officer from returning a document as unredacted to any person who submitted the document for recordation.

(3) A home address as unredacted may be provided by a public agency to the majority representative of such agency's employees.

(4) The following shall not be subject to redaction or nondisclosure pursuant to section 2 of P.L.2021, c.371 (C.47:1B-2):

(a) records and documents, including Uniform Commercial Code filings and financing statements, maintained by the Division of Revenue and Enterprise Services in the Department of the Treasury;

(b) petitions naming candidates for office pursuant to R.S.19:13-1 and R.S.19:13-4;

(d) records evidencing any lien, judgement, or other encumbrance upon real or other property;

(e) assessment lists subject to inspection pursuant to R.S.54:4-38 when inspected in person;

(f) the index of all recorded documents maintained by a county recording officer as under N.J.S.46:26A-8 when inspected in person; and

(g) property that is presumed abandoned under the "Uniform Unclaimed Property Act," P.L.1989, c.58 (C.46:30B-1 et seq.).

(5) A public agency may share unredacted information with any vendor, contractor, or organization to carry out the purposes for which the public agency entered into an agreement with the vendor, contractor, or organization. The vendor, contractor, or organization shall not use such information in any manner other than as necessary to carry out the purposes of the agreement.

(6) For a record or other document containing a home address required to be redacted pursuant to section 2 of P.L.2021, c.371 (C.47:1B-2) that, because of the characteristics or properties of the record or document, is only available to be viewed in person, a custodian or other government official shall make every reasonable effort to hide such address when allowing an individual without authority to view such address as unredacted to view the record or document.

(7) For the purposes of the calculation of property tax benefits and the administration of property tax credits for eligible claimants pursuant to the "Stay NJ Act," P.L.2021, c.75 (C.54:4-8.75a et al.), municipalities may share unredacted property tax information with the Director of the Division of Taxation in the Department of the Treasury, and the director may provide to municipalities unredacted amounts of property tax credits to be applied against property tax bills of eligible claimants.

b. Nothing in this act shall be construed to require redaction or nondisclosure of any information in any document, record, information, or database shared with or otherwise provided to any other government entity.

c. Information otherwise subject to redaction or nondisclosure pursuant to section 2 of P.L.2021, c.371 (C.47:1B-2) may be provided as unredacted upon order of a judge of the Superior Court or of any other court of competent jurisdiction.

d. This section shall not be construed to require a record to be made available that is not otherwise required to be made available under any other law or regulation.

e. The Director of the Division of Taxation may issue any guidance, guidelines, or rules and regulations necessary to effectuate the purposes of this section. The rules and regulations shall be effective immediately upon filing with the Office of Administrative Law for a period not to exceed 18 months, and shall, thereafter, be amended, adopted, or readopted in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

(cf: P.L.2021, c.371, s.3)

21. R.S.54:50-8 is amended to read as follows:

54:50-8. a. The records and files of the director respecting the administration of the State Uniform Tax Procedure Law or of any State tax law, or respecting the administration of the Stay NJ property tax credit, the ANCHOR Property Tax Relief Program, and the homestead property tax reimbursement program, shall be considered confidential and privileged and neither the director nor any employee engaged in the administration thereof or charged with the custody of any such records or files, nor any former officer or employee, nor any person who may have secured information therefrom under subsection d., e., f., g., p., q., r., or s. of R.S.54:50-9 or any other provision of State law, shall divulge, disclose, use for their own personal advantage, or examine for any reason other than a reason necessitated by the performance of official duties any information obtained from the said records or files or from any examination or inspection of the premises or property of any person. Neither the director nor any employee engaged in such administration or charged with the custody of any such records or files shall be required to produce any of them for the inspection of any person or for use in any action or proceeding except when the records or files or the facts shown thereby are directly involved in an action or proceeding under the provisions of the State Uniform Tax Procedure Law or of the State tax law affected, or where the determination of the action or proceeding will affect the validity or amount of the claim of the State under some State tax law, or in any lawful proceeding for the investigation and prosecution of any violation of the criminal provisions of the State Uniform Tax Procedure Law or of any State tax law.

b. The prohibitions of this section, against unauthorized disclosure, use or examination by any present or former officer or employee of this State or any other individual having custody of such information obtained pursuant to the explicit authority of State law, shall specifically include, without limitation, violations involving the divulgence or examination of any information from or any copy of a federal return or federal return information required by New Jersey law to be attached to or included in any New Jersey return. Any person violating this section by divulging, disclosing or using information shall be guilty of a crime of the fourth degree. Any person violating this section by examining records or files for any reason other than a reason necessitated by the performance of official duties shall be guilty of a disorderly persons offense.

c. Whenever records and files are used in connection with the prosecution of any person for violating the provisions of this section by divulging, disclosing or using records or files or examining records and files for any reason other than a reason necessitated by the performance of official duties, the defendant shall be given access to those records and files. The court shall review such records and files in camera, and that portion of the court record containing the records and files shall be sealed by the court.

(cf: P.L.2021, c.167, s.5)

22. Section 3 of P.L.1996, c.60 (C.54A:3A-17) is amended to read as follows:

3. a. A resident taxpayer under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be allowed a deduction from gross income for the amount of property tax credit, as defined in section 1 of P.L.2018, c.11 (C.54:4-66.6), plus property taxes paid by the resident taxpayer, the total of which shall not exceed $15,000, subject to the limitations of subsection f. of this section. Property taxes deductible under this section shall be due and paid for the calendar year in which the taxes are due and payable on the taxpayer's homestead.

b. A deduction for property taxes or property tax credits shall be allowed pursuant to this section in relation to the amount of the property taxes or property tax credits actually paid by [or allocable to] a resident taxpayer who has more than one homestead, but the aggregate amount of the property taxes or property tax credits claimed shall not exceed the total of the proportionate amounts of property taxes [assessed and levied against or allocable to] paid for each homestead for the portion of the taxable year for which the taxpayer occupied it as the taxpayer's principal residence.

c. If title to a homestead is held by more than one individual as joint tenants or tenants in common, each individual shall be allowed a deduction pursuant to this section only in relation to the individual's proportionate share of the property taxes assessed and levied against the homestead. The proportionate share shall be equal to that of all other individuals who hold the title, but if the conveyance under which the title is held provides for unequal interests therein, a taxpayer's share of the property taxes shall be in proportion to the taxpayer's interest in the title.

d. If title to a homestead is held by a husband and wife who own the homestead as tenants by the entirety, or if that husband and wife are both residential shareholders of a cooperative or mutual housing corporation and occupy the same homestead therein, and who elect to file separate income tax returns pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., that husband and wife shall each be entitled to one-half of the deduction for property taxes for which they may be jointly eligible pursuant to this section.

e. If the homestead is a dwelling house consisting of more than one unit, that taxpayer shall be allowed a deduction for property taxes or property tax credits only in relation to the proportionate share of the property taxes assessed and levied against the residential unit occupied by the taxpayer, as determined by the local tax assessor.

f. Notwithstanding the provisions of subsection a. of this section to the contrary: (1) a resident taxpayer shall be allowed a deduction for a taxpayer's taxable year beginning during 1996 based on 50% of the property taxes not in excess of $5,000 paid on the taxpayer's homestead; and (2) a resident taxpayer shall be allowed a deduction for a taxpayer's taxable year beginning during 1997 based on 75% of the property taxes not in excess of $7,500 paid on the taxpayer's homestead.

g. Notwithstanding any other provision of this section, the deduction allowed under this section to a resident taxpayer eligible to receive a homestead property tax reimbursement pursuant to P.L.1997, c.348 (C.54:4-8.67 et al.) shall not exceed that resident taxpayer's base year property tax liability as determined pursuant to P.L.1997, c.348 (C.54:4-8.67 et al.).

h. Notwithstanding any other provision of this section, for the taxable year beginning January 1, 2009, a taxpayer who has gross income for the taxable year of more than $250,000 and is not:

(1) 65 years of age or older at the close of the taxable year; or

(2) allowed to claim a personal deduction as a blind or disabled taxpayer pursuant to subsection (b) of N.J.S.54A:3-1, shall not be allowed a deduction pursuant to this section;

provided however, the deduction for a taxpayer who has gross income for the taxable year of more than $150,000 but not exceeding $250,000 and is not:

(1) 65 years of age or older at the close of the taxable year; or

(2) allowed to claim a personal deduction as a blind or disabled taxpayer pursuant to subsection (b) of N.J.S.54A:3-1, shall not exceed $5,000.

(cf: P.L.2018, c.45, s.1)

23. Section 5 of P.L.1996, c.60 (C.54A:3A-19) is amended to read as follows:

5. a. If a taxpayer who is eligible for a deduction for property taxes paid under section 3 of [this act] P.L.1996, c.60 (C.54A:3A-17) for a part of the taxable year is also eligible for a deduction for rent constituting property taxes under section 4 of this act for a part of the taxable year, the taxpayer shall be allowed a deduction, not in excess of $15,000, subject to the limitations of subsection b. of this section, the amount of which shall be equal to the sum of the amount of property tax credit, as defined in section 1 of P.L.2018, c.11 (C.54:4-66.6), plus the amount of property taxes due and paid for the calendar year in which the property taxes are due and payable on a homestead that is not a unit of residential rental property and the amount of rent constituting property taxes due and paid for the calendar year in which the rent constituting property taxes is due and payable for the occupancy of a homestead that is a unit of residential rental property, provided however, that the amount of property taxes and property tax credits shall be subject to the limitations set forth in subsections b. through e. of section 3 of P.L.1996, c.60 (C.54A:3A-17) and the amount of rent constituting property taxes shall be subject to the limitations set forth in subsections b. and c. of section 4 of P.L.1996, c.60 (C.54A:3A-18) as may be applicable.

b. Notwithstanding the provisions of subsection a. of this section to the contrary: (1) a taxpayer who is eligible for a deduction for property taxes paid under section 3 of [this act] P.L.1996, c.60 (C.54A:3A-17) for a part of the taxable year and is also eligible for a deduction for rent constituting property taxes under section 4 of [this act] P.L.1996, c.60 (C.54A:3A-18) for a part of the taxable year, shall be allowed a deduction for the taxpayer's taxable year beginning during 1996 based on 50% of an amount not in excess of $5,000, the amount of which shall be equal to the sum of the amount of property taxes paid on a homestead that is not a unit of residential rental property and the amount of rent constituting property taxes paid for the occupancy of a homestead that is a unit of residential rental property; and (2) a taxpayer who is eligible for a deduction for property taxes paid under section 3 of [this act] P.L.1996, c.60 (C.54A:3A-17) for a part of the taxable year and is also eligible for a deduction for rent constituting property taxes under section 4 of [this act] P.L.1996, c.60 (C.54A:3A-18) for a part of the taxable year, shall be allowed a deduction for the taxpayer's taxable year beginning during 1997 based on 75% of an amount not in excess of $7,500, the amount of which shall be equal to the sum of the amount of property taxes paid on a homestead that is not a unit of residential rental property and the amount of rent constituting property taxes paid for the occupancy of a homestead that is a unit of residential rental property.

(cf: P.L.2018, c.45, s.3)

24. This act shall take effect immediately.

Revises statutes implementing certain property tax relief programs pursuant to recommendations promulgated by Stay NJ Task Force.

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Bill Text: NJ A4706 | 2024-2025 | Regular Session | Enrolled

New Jersey Assembly Bill 4706

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