Bill Text: NJ S2387 | 2014-2015 | Regular Session | Introduced
Bill Title: Establishes limited duration homestead property tax reimbursement.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-05-27 - Reviewed by the Sales Tax Review Commission Recommend to not enact [S2387 Detail]
Download: New_Jersey-2014-S2387-Introduced.html
Sponsored by:
Senator JENNIFER BECK
District 11 (Monmouth)
SYNOPSIS
Establishes limited duration homestead property tax reimbursement.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a limited duration homestead property tax reimbursement and supplementing chapter 4 of Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding any provisions of P.L.1997, c.348 (C.54:4-8.67 et seq.) to the contrary, a person who meets all of the qualifications of an eligible claimant except the income limit, and has an annual income that exceeds the amount of the income limit for the tax year, as that limit is set either by statute or by superseding language in the annual appropriations act, but does not exceed $90,000, who lives in an age-restricted housing community limited to persons who are of age 55 or older, and whose property taxes, after a revaluation of real property, have increased by 10% or more, shall be eligible to receive a limited duration homestead property tax reimbursement for that tax year and for the next four succeeding tax years. The amount of the limited duration homestead property tax reimbursement for each of those five tax years shall be:
(1) For the first tax year, 100% of the property tax increase resulting from the revaluation of real property in the municipality;
(2) For the second tax year, 80% of the property tax increase resulting from the revaluation of real property in the municipality;
(3) For the third tax year, 60% of the property tax increase resulting from the revaluation of real property in the municipality;
(4) For the fourth tax year, 40% of the property tax increase resulting from the revaluation of real property in the municipality; and
(5) For the fifth tax year, 20% of the property tax increase resulting from the revaluation of real property in the municipality.
b. Eligibility to receive a limited duration homestead property tax reimbursement shall not qualify a recipient thereof for a homestead property tax reimbursement unless that person meets all of the qualifications for the homestead property tax reimbursement program.
c. A person who moves from the homestead during any time that he or she is receiving a limited duration homestead property tax reimbursement shall not be eligible to receive any further payments with respect to that homestead.
d. A person who is
receiving a limited duration homestead property tax deduction and in any tax
year during the five-year duration exceeds the income limit of $90,000 set
forth in this section shall not receive a reimbursement payment for that tax year.
2. The Director of the Division of Taxation in the Department of the
Treasury shall promulgate any rules, regulations, forms or processes necessary
to effectuate the provisions of this act.
3. This act shall take effect immediately and shall first be applicable to the tax year next following enactment.
STATEMENT
This bill would establish a limited duration homestead property tax reimbursement to address the concerns of senior citizens who do not qualify, because of their income, for a homestead property tax reimbursement, but who face a significant property tax increase following a revaluation of real property in the municipality in which they reside.
Under the bill, a person who meets all of the qualifications of an eligible claimant under P.L.1997, c.348 (C.54:4-8.67 et seq.), (commonly referred to as the "senior freeze" program), but who has an annual income that exceeds the amount of the income limit under the homestead property tax reimbursement program for the tax year, as that limit is set either by statute or by superseding language in the annual appropriations act, but does not exceed $90,000, who lives in an age-restricted housing community limited to persons who are of age 55 and over, and whose property taxes, after a municipal-wide revaluation of real property, have increased by 10% or more, shall be eligible to receive a limited duration homestead property tax reimbursement for that tax year and for the next four succeeding tax years.
The amount of the limited duration homestead property tax reimbursement for each of those five tax years shall be:
(1) For the first tax year, 100% of the property tax increase resulting from the revaluation of real property in the municipality;
(2) For the second tax year, 80% of the property tax increase resulting from the revaluation of real property in the municipality;
(3) For the third tax year, 60% of the property tax increase resulting from the revaluation of real property in the municipality;
(4) For the fourth tax year, 40% of the property tax increase resulting from the revaluation of real property in the municipality; and
(5) For the fifth tax year, 20% of the property tax increase resulting from the revaluation of real property in the municipality.
Eligibility to receive a limited duration homestead property tax reimbursement shall not qualify a recipient thereof for a homestead property tax reimbursement.
A person who moves from the homestead during the period in which he or she is receiving a limited duration homesteads property tax reimbursement will not be eligible to receive any further payments with respect to that homestead.
A person who is receiving a limited duration homestead property tax reimbursement and who, in any tax year during the five-year duration of the limited duration homestead property tax reimbursement, exceeds the income limit of $90,000 set forth in this bill shall not receive a reimbursement payment for that tax year.
