ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3460

STATE OF NEW JERSEY

DATED: NOVEMBER 13, 2008

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 3460.

      The bill increases the income eligibility limits for the homestead property tax reimbursement program beginning in tax year 2007 for certain qualified senior and disabled homeowners.  This program provides reimbursement of property tax increases to eligible citizens.  The bill provides that beginning with tax year 2008 a property taxpayer cannot receive reimbursements, rebates, credits, deductions, or exemptions of property taxes under certain property tax relief laws in amounts exceeding the amount of property taxes that the taxpayer paid for the taxpayer's residence for the same year.

      Under the bill, the income eligibility limits will increase from $45,135, if single, and $55,344 (combined income) for married couples to $60,000 in tax year 2007; to $70,000 in tax year 2008; and to $80,000 in tax year 2009, whether single or married.  This increase in the income limits will ensure that additional seniors will benefit from this program.

FISCAL IMPACT:

      According to the Department of the Treasury, there are currently 132,000 recipients of this reimbursement program.  In the first year, (tax year 2008, State FY 2010), there will be 15,000 new recipients at a cost of less than $5 million; in the second year, (tax year 2009, State FY 2011), a cost of $14 million; and, in the third year, (tax year 2010, State FY 2012), a cost of $32 million.