Answering Your Questions about the Homestead Property Tax Credit/Rebate

The past legislative session witnessed an intense but necessary debate concerning New Jersey’s high property taxes. While there were many measures enacted into law which will serve to ease the burden of high taxes on homeowners, the measure which provides the most immediate and direct relief is the Homestead Property Tax Credit/Rebate. This page will address the most common questions regarding the program.

Homeowners and renters who are age 65 or older or who are disabled have additional programs to help offset their property tax burden. The lower section of this page is dedicated to their programs.

Homeowners and renters who are under age 65 and not disabled

“The intent of the Homestead Property Tax Credit is to provide immediate relief to the State’s property tax payers. This program provides significantly greater property tax relief then any past program”, said Speaker Roberts.

Below are the rebate amounts for homeowners who are under age 65 and who are not disabled.

Rebates for tenants have been increased this year as well. Eligible tenants will receive rebates ranging from $80 to $350 depending on income. Below are the rebate amounts for tenants who are under age 65 and who are not disabled.

To be eligible for the 2006 Tenants’ Rebate you must meet the following requirements:

• Rented and occupied a dwelling in New Jersey that was your principle residence on October 1, 2003
• Your residence is subject to local property taxes and property taxes are paid on that residence through rent
• Your residence is a full living unit with its own separate kitchen and bathroom
• Your gross income for 2006 was $100,000 or less

Homeowners and renters who are age 65 or older or who are disabledThe program works differently for those who are 65 or older and the disabled. In past years, some senior and disabled citizens received a rebate greater then 20% of their property taxes. For this reason senior and disabled citizens will receive either this year’s rebate as explained above or the amount they received under last year’s Homestead program, whichever is greater.Below are the rebate amounts for homeowners who are age 65 or older and/or disabled.

To be eligible for the 2006 homeowners Homestead Credit/Rebate you must meet the following requirements:

• Owned and occupied a home in New Jersey as your principle residence on October 1, 2006.
• Have a gross income for 2006 of $250,000 or less. (Do not include non-taxable income)
• The home must be subject to local property taxes and 2006 property taxes must have been paid.
• New Jersey residents are not eligible for the Homestead Credit/Rebate if no property taxes are paid on their homes.

This program in no way affects the Property Tax Reimbursement (PTR) for senior citizens and the disabled, which is also known as the “Senior Freeze.” This year, the rebate will be in the form of a check and will not be a credit off of homeowners’ property tax bills.
Rebates for tenants have been increased this year as well. Senior and disabled citizens’ rebates range from $350 to $860 depending on income and filing status. Below are the rebate amounts for tenants who are age 65 or older or who are not disabled.

If you require any further information or need assistance applying for your 2006 Homestead Credit/Rebate please do not hesitate to contact Assemblyman Roberts’ office at (856) 742-7600.

Fighting for Permanent Property Tax Relief

Following the one cent on the dollar sales tax increase in 2006, I remain committed to permanently dedicating the full sales tax increase to property tax relief. That is why I sponsored and fought to pass ACR 20 which will place a referendum on November’s ballot allowing voters to decide if the full cent increase should be dedicated to property tax relief. This will ensure the sustainability of the recent property tax relief plan which includes a credit of up to twenty percent off property tax bills.

Last November, voters approved a constitutional amendment dedicating one half of the sales tax increase toward property tax relief.  The 2006 dedication provided $600 million or 20% of this year’s property tax relief fund. If the full cent dedication is approved by voters this November, it would account for approximately 40% of the total revenue necessary to fund the State’s property tax relief program and ensure its future sustainability.

Last year the Legislature enacted sweeping property tax reforms which not only provided direct relief but instituted several measures to reduce the underlying cause of high property taxes; government inefficiencies and overlapping services. One key aspect of the reform package was the creation of the Office of the State Comptroller. The Comptroller will oversee the state’s spending and will have the authority to audit all state agencies, departments and authorities in order to identify waste and fraud. Also included in the reform package was a bill which created a county wide super intendment to replace overlapping school districts and bureaucracy into a more efficient, consolidated county-wide school district. The Assembly also cleared many of the bureaucratic roadblocks which made consolidating municipal services nearly impossible.

Taken as a whole these measures form a comprehensive property tax relief package. I remain committed to ensuring permanent property tax relief sustained by a dedicated revenue source. A constitutional amendment dedicating one seventh of the sales tax will make certain that the recent property tax relief measures are permanent.