FISCAL NOTE TO

[Second Reprint]

ASSEMBLY, No. 3

STATE OF NEW JERSEY

DATED: NOVEMBER 21, 1997

      Assembly Bill No. 3 (2R) of 1997 provides, annually beginning in fiscal year 1999, a homestead property tax reimbursement to senior and disabled, PAAD-eligible residents of the State who are homeowners; who lease a site in a mobile home park and own the mobile home located thereon; and who have paid property taxes on a homestead or rental unit used as their principal residence in this State for at least 10 consecutive years. The annual homestead property tax reimbursement payments would effectively freeze the property taxes for those eligible senior and disabled residents. The annual homestead property tax reimbursement payments would also effectively freeze the site fee constituting property tax of eligible senior and disabled residents who are mobile homeowners. The bill defines "site fee constituting property tax" as 18 percent of the annual site fee paid or payable to the owner of the mobile home park.

      Currently, single persons must have an annual income of less than $17,550 and married couples must have an annual income of less than $21,519 in order to be eligible for assistance under the PAAD program. Those qualified homeowners would be eligible to receive a check from the State equal to the difference between the amount of property taxes paid for the base tax year and the amount paid in any future tax year in which the eligible homeowner pays taxes that are higher than the base-year amount. The bill defines "base year" as tax year 1996 or the tax year in which the person becomes an eligible claimant.

      The homestead property tax reimbursement is to be calculated by the Commissioner of Health and Senior Services, who is directed to administer the homestead property tax reimbursement program using information provided by applicants for the homestead property tax reimbursement. The homestead property tax reimbursement is required to be paid to those eligible homeowners on or before July 15, 1998 and on or before July 15 in each succeeding year. Payments made pursuant to this bill will be appropriated from receipts in the Casino Revenue Fund. The bill also permits a municipality to apply to the State Treasurer for any costs incurred by the municipality in connection with the administration of this bill in accordance with procedures determined by the State Treasurer.

      The Office of Legislative Services (OLS) has obtained property tax data from the Division of Taxation, enrollment data from the New Jersey Department of Health and Senior Services concerning the Pharmaceutical Assistance and Lifeline programs that they administer, mobility data for senior citizens and the count of owner occupied mobile homes from the Census, and information from the New Jersey Manufactured Housing Association to prepare this fiscal estimate.

      The Department of the Treasury in its fiscal note worksheet estimates the program will cost $21 million in FY 1999. OLS estimates the program will cost a maximum of $20.7 million in FY 1999, $39.5 million in FY 2000, and $57.4 million in FY 2001. After 10 years, in FY 2008, using the same rates of change, OLS estimates the program will cost $160.6 million.

This fiscal note has been prepared pursuant to P.L.1980, c.67.