Sponsored by:
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
SYNOPSIS
Permits administrator or executor of estate to file claim for payment of homestead property tax reimbursement for portion of tax year during which decedent lived.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the homestead property tax reimbursement, amending and supplementing P.L.1997, c.348.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1997, c.348 (C.54:4-8.70) is amended to read as follows:
3. An application for a homestead property tax reimbursement hereunder shall be filed with the director annually beginning April 1 and ending October 31 of the year following the year for which the claim is being made, and shall reflect the prerequisites for a homestead property tax reimbursement on December 31 of the tax year for which the claim is being made, except as provided in section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill); provided, however, that the director may, by rule, designate a later date as the date by which the application shall be filed or waive the requirement for filing an annual application for any year or years subject to any limitations and conditions the director may deem appropriate. The application shall be on a form prescribed by the director and provided for the use of applicants hereunder. Each applicant making a claim for a homestead property tax reimbursement under this act shall provide, if required by the director, to the director a copy of his or her current year property tax bill or current year site fee bill on the homestead constituting that person's principal residence and a copy of his or her property tax bill for the base year or site fee bill for the base year on the same homestead, or other equivalent proof as permitted by the director.
It shall be the duty of every eligible claimant to inform the director of any change in his or her status or homestead which may affect his or her right to continuance of the homestead property tax reimbursement.
If an eligible claimant receives an additional homestead property tax reimbursement to which the claimant was not entitled or greater than the reimbursement to which the claimant was entitled, the director shall permit the claimant to enter into an installment payment agreement for a reasonable period of time that will enable the claimant to completely satisfy the amount of the reimbursement paid to which the claimant was not entitled. If the claimant does not enter into an installment payment agreement, the director may, in addition to all other available legal remedies, offset such amount against a gross income tax refund or amount due pursuant to P.L.1990, c.61.
(cf: P.L.2017, c.370, s.1)
2. (New section) a. If a resident of this State who otherwise qualifies as an eligible claimant dies prior to the end of the year in which property tax or site fee constituting property tax is due and payable, and the surviving spouse does not satisfy the criteria of an eligible claimant, the administrator or executor of the decedent’s estate shall be entitled to file a claim for a pro rata reimbursement for the tax year that the decedent lived. The claim for reimbursement shall reflect the prerequisites for a homestead property tax reimbursement on the date of the decedent’s death.
b. A pro rata reimbursement payable pursuant to this section shall be equal to (1) the difference between the amount of property tax or site fee constituting property tax due and paid in the tax year on any homestead, exclusive of any improvements on the real property for the base year, and the amount of property or site constituting property tax due and paid in the base year; multiplied by (2) the number of days of the tax year the decedent lived, divided by 365.
3. This act shall take effect on the first day of the first calendar year following enactment.
STATEMENT
This bill permits the administrator or executor of the estate of someone who was eligible to receive the homestead property tax reimbursement to file a claim for a pro rata reimbursement for the number of days of the tax year that the deceased spouse or parent lived. Under current law, an applicant must satisfy all prerequisites for a homestead property tax reimbursement as of December 31 of the tax year for which the claim is being made. The bill establishes a formula for determining the pro rata reimbursement.
Current law allows a surviving spouse to file an application on behalf of a spouse who dies after December 31 of the tax year. The Division of Taxation also allows the executor of estate to file an application on behalf of an eligible claimant who dies after December 31 of the tax year. However, no provision of law allows a surviving spouse or surviving child to claim a partial reimbursement based upon the number of days an eligible claimant lives during the tax year. This bill is intended to relieve an unusual hardship placed upon the surviving spouse of someone who was eligible for the reimbursement but is not themselves eligible.