New Jersey-2020-ACR201-Introduced

A Concurrent Resolution proposing to amend Article VIII, Section I of the New Jersey Constitution by adding a new paragraph.

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

PROPOSED AMENDMENT

Amend Article VIII, Section I by adding a new paragraph 8 to read as follows:

8. The Legislature may enact a law to provide a property owner with a credit against property taxes on real property that serves as the primary residence of a senior citizen who rents the residence from the property owner. A law so enacted shall require that, to qualify for the credit, the senior citizen occupying the property as their primary residence shall be of limited income in accordance with requirements established by the Legislature, and shall be provided by the property owner with protections against a rent increase that exceeds a measure of inflation established by the Legislature, or 2 percent of the total amount of rent charged on the senior citizen's home in the previous year, whichever is greater. The amount of this credit shall be no greater than the difference between the amount of rent charged by the landlord for a full year while in compliance with the rent increase protections enacted by the Legislature in accordance with this paragraph, and the highest possible amount of rent that the landlord is authorized to charge while remaining in compliance with the rent increase protections enacted by the Legislature in accordance with this paragraph.

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

b. In every municipality the following question:

		CONSTITUTIONAL AMENDMENT TO PERMIT A PROPERTY TAX CREDIT FOR PROPERTY OWNERS WHO LIMIT RENT ON HOMES OF CERTAIN SENIOR CITIZENS
	YES	Do you approve amending the Constitution to permit a property tax credit for property owners who rent to certain income-limited senior citizens? The owner would have to limit rent increases on the home to qualify for the credit. A rent increase could not exceed inflation or two percent of rent in the last year, whichever is more.
		INTERPRETIVE STATEMENT
	NO	This amendment would allow the owner of a home rented to an income-limited senior citizen to obtain a property tax credit. The income limitation necessary for eligibility would be determined by the Legislature. For a rented home to be eligible for the credit it would have to be the primary residence of the senior citizen. The owner would only obtain the credit if rent increases are limited on the home. The rent increase would have to be less than inflation or two percent of rent in the last year, whichever is more. The measure of inflation to be used for this determination would be determined by the Legislature. The amount of the tax credit would be no more than the difference between the actual rent charged and the greatest amount that the owner could charge in rent while in compliance with the rent increase protections enacted by the Legislature.

STATEMENT

This resolution proposes a constitutional amendment to authorize the owner of a residence rented to an income-limited senior citizen to obtain a property tax credit. Specifically, the resolution provides that the Legislature may enact a law to provide the owner of the senior citizen's residence with a property tax credit. To qualify for the credit, the senior citizen occupying the residence would have to be of limited income, in accordance with statutory requirements. The landlord would also have to provide the senior citizen with protections against a rent increase that exceeds a statutorily-determined measure of inflation, or two percent of the rent charged for the senior citizen's residence in the previous year, whichever is greater.

The amount of the property tax credit would be no greater than the difference between the amount of rent charged by the landlord, while in compliance with the rent increase protections enacted by law, and the highest possible amount of rent that the landlord could charge while remaining in compliance with the protections enacted by law. For example, if inflation is three percent, and a property owner charged $1,000 in monthly rent to a property occupied by an income-limited senior citizen one year and leaves the rent unchanged for the following year, this resolution would allow that property owner to obtain a property tax credit of as much as $360 for the following year. This is because the highest possible amount of monthly rent that this owner could have charged while remaining in compliance with the protections would have been $1,030. By leaving rent unchanged, the owner kept rent $30 under the rent increase protections each month, or $360 under those protections for the full year.