STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman JON M. BRAMNICK
District 21 (Morris, Somerset and Union)
Assemblyman JAY WEBBER
District 26 (Essex, Morris and Passaic)
Co-Sponsored by:
Assemblymen Space, Wirths and Assemblywoman N.Munoz
SYNOPSIS
Increases amount of, and income limit for eligibility to receive, senior citizens’ and disabled persons’ property tax deduction.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the senior citizens’ and disabled persons’ property tax deduction and amending P.L.1963, c.172.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1963, c.172 (C.54:4-8.41) is amended to read as follows:
2. Every person, a citizen and resident of this State of the age of 65 or more years, or less than 65 years of age who is permanently and totally disabled, having an annual income not in excess of the limitations provided in this section and residing in a dwelling house owned by him which is a constituent part of his real property or residing in a dwelling house owned by him which is assessed as real property but which is situated on land owned by another or others, or residing as a tenant shareholder in a cooperative or mutual housing corporation, shall be entitled, annually, on proper claim being made therefor, to a deduction against the tax or taxes assessed against such real property, to an amount not exceeding the amount of said tax, the proportionate share of said tax attributable to his unit, or the sum provided in this section, whichever is the lesser, but no such deduction from taxes shall be in addition to any other deduction or exemption from taxes to which said person may be entitled, except a veteran's deduction provided under P.L.1963, c.171 (C.54:4-8.10 et seq.). A citizen and resident granted a deduction pursuant to this section may receive in addition any homestead rebate or credit provided by law.
For the purposes of this section, the annual income limitation shall be: $5,000.00 for any year prior to 1981; $8,000.00 for the year 1981; $9,000.00 for the year 1982; [and] $10,000.00 for [year] the years 1983 through 2014, and $25,000 for the year 2015 and each year thereafter.
The sum deducted pursuant to this section shall not exceed: in any year prior to 1981, $160.00; in the year 1981, $200.00; in the year 1982, $225.00; [and] in the [year] years 1983 [and in each year thereafter] through 2014, $250.00; and in 2015 and in each year thereafter, $500.00.
For the purposes of this act:
a. The income of a married person shall be deemed to include an amount equal to the income of the spouse during the applicable income year, except for such portion of that year as the two were living apart in a state of separation, whether under judicial decree or otherwise.
b. The requirement of ownership shall be satisfied by the holding of a beneficial interest in the dwelling house where legal title thereto is held by another who retains a security interest in the dwelling house.
(cf: P.L.1989, c.252, s.2)
2. This act shall take effect on the 30th day next following the approval by the voters of the State of a constitutional amendment to revise the senior and disabled property tax deduction as provided for herein.
STATEMENT
This bill increases both the amount of the annual senior citizens’ and disabled persons’ property tax deduction, and the annual income limit for eligibility to receive that annual deduction.
Currently, the Constitution, and the enabling statute, N.J.S.A.54:4-8.41, limits to $10,000 the amount of income that can be earned annually in order to qualify for the senior citizens’ and disabled persons’ property tax deduction, and limits the amount of that property tax deduction to $250 per year.
This bill would increase the annual income limit to $25,000, and the amount of the deduction to $500, beginning in 2015. However, the provisions of the bill would only take effect on the 30th day immediately following the approval by the voters of the State of a constitutional amendment to revise the income limit, and the amount of the property tax deduction, as set forth in the bill.
The income limit was last increased in 1983, from $9,000 to $10,000, and the amount of the property tax deduction also was last increased in 1983, from $225 to $250.s