ASSEMBLY, No. 1953




DATED:  APRIL 4, 2016


      The Assembly Appropriations Committee reports favorably Assembly Bill No. 1953.

      This bill allows senior or disabled citizens who are paid or credited homestead credits or homestead property tax reimbursement amounts, or both, in amounts greater than that to which they are entitled, to repay the overpayment amounts in installment payments, without the imposition of interest.  The bill requires the Director of the Division of Taxation to offer an installment payment agreement for a reasonable period of time to enable the recipient to fully satisfy the amount owed to the State.  This bill is intended to establish a mechanism for indebted seniors and persons with disabilities to extinguish these debts in a fair and reasonable matter without the State unilaterally intercepting future appropriate payments of these benefits which may cause undue economic harm to the recipients.



      The Office of Legislative Services concludes that the enactment of Assembly Bill No. 1953 could result in an indeterminate loss of State revenues in the form of interest assessed against homestead credit overpayments not returned to the State in accordance with current law.

      Information on the total amount of erroneous homestead credit payments distributed to senior citizens and disabled persons and the total amount of erroneous homestead property tax reimbursement payments is not available at this time.

      It is possible that a taxpayer permitted to repay an overpayment under the terms of an installment payment plan will receive another annual homestead credit or homestead property tax reimbursement while still owing moneys to the State.