TRENTON, April 28, 2008 – State Treasurer David Rousseau announced today that the New Jersey Division of Taxation will begin mailing homestead rebate applications this week to approximately 500,000 senior citizen and disabled homeowners.
The applications are being mailed in two groups. Senior and disabled homeowners in Bergen, Burlington, Cape May, Cumberland, Gloucester, Mercer, Middlesex, Passaic, Union, and Warren counties can expect to begin receiving their applications by the end of the week. Those in Atlantic, Camden, Essex, Hudson, Hunterdon, Monmouth, Morris, Ocean, Salem, Somerset, and Sussex can expect to begin seeing their applications during the week of May 5th.
“Notwithstanding fiscal pressures, which made it necessary to cut spending by $2.7 billion for the next fiscal year, the proposed budget allocates $2.5 billion for direct property tax relief, including $1.6 billion for homestead rebates,” Rousseau said. “We are proposing some eligibility changes to the homestead rebate program to help preserve last year’s benefit for the vast majority of recipients. However, the changes affect only a small percentage of seniors and this year’s average check is projected to remain above $1,200,” he said.
Under changes proposed in the FY 2009 budget, homeowners with gross income of $150,000 or less would qualify for a rebate this year, reduced from last year’s income eligibility limit of $250,000. For residents with incomes of $100,000 or less, the rebate remains at 20 percent of the first $10,000 in property taxes paid in 2006. Under the proposed changes homeowners with gross income of between $100,001 and $150,000 would receive rebates of 10 percent of the first $10,000 of property taxes paid in 2006, instead of the 15 percent they received last year.
Senior or disabled homeowners would receive the greater of a percentage of their property taxes (as described above) or an amount calculated under last year’s alternate rules. Those rules provided senior and disabled homeowners with rebates ranging from $500 to $1,200, depending on their income and the amount of property taxes paid.
Senior and disabled homeowners will have until June 2, 2008, to file their applications for this year’s rebate. They must meet the following criteria to qualify:
• Own and occupy a home in New Jersey that was their principal residence on October 1, 2007;
• Have gross income for 2007 that does not exceed the threshold (currently the income threshold is $250,000 – that would change to $150,000 under the proposed budget for FY 09);
• The home must be subject to local property taxes, and 2007 property taxes must have been paid.
Rebate checks for senior and disabled homeowners are expected to be mailed on or about July 31, 2008.
Benefits under the Homestead Rebate Program are in addition to the State’s other property tax relief programs such as the Senior Freeze (Property Tax Reimbursement), the property tax deductions for senior citizens and veterans, and the property tax deduction/credit on the State income tax return. Residents who qualify can still apply for and receive benefits under those programs.
With very few exceptions, the homeowner rebate applications must be filed by phone or online. Homeowners are urged to complete the worksheet in their rebate application packet before attempting to file.
By following the instructions in the application packet and checking all their information before they file, homeowners can ensure fast, easy and accurate filing. The homeowner rebate automated telephone filing system (1-877-658-2972) and Internet filing application on the Division of Taxation Web site (www.state.nj.us/treasury/taxation/) will be available 24 hours a day, 7 days a week during the filing period.
For additional information about the Homestead Rebate Program call 1-888-238-1233 or visit the Division of Taxation Web site at www.state.nj.us/treasury/taxation/.
