ASSEMBLY, No. 1375

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblymen STEELE and PASCRELL

 

 

An Act concerning the annual property tax deduction provided to senior citizens and the disabled 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 [and each year thereafter] through 1992.

    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 1992, $250.00.

    Beginning in 1993, the annual income limitations and corresponding sums deducted shall be as follows:

    If annual income is $10,000 or less, the deduction shall be 10% of annual property tax owed;

    If annual income is more than $10,000 but not more than $15,000, the deduction shall be 7.5% of annual property tax owed;

    If annual income is more than $15,000 but not more than $20,000, the deduction shall be 5% of annual property tax owed.

    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 immediately but shall remain inoperative until the approval by the voters of a Constitutional amendment, proposed by Assembly Concurrent Resolution No. ... of 1992, authorizing an increase in the annual income limitation and the annual property tax deduction for senior citizens and persons who are permanently and totally disabled provided for herein.

 

 

STATEMENT

 

    This bill revises the amount of the property tax deduction provided to senior citizens and persons who are permanently and totally disabled, and the income limitation for eligibility to receive that deduction, to make the amount of the annual deduction more commensurate with the annual income of the recipients of the deduction. The current property tax deduction is $250.00 for all those eligible to receive the deduction, and the annual income limitation is $10,000, excluding certain pension and retirement income.

    This bill proposes revisions to both the annual income limitation and the annual property tax deduction, making more senior citizens and persons who are permanently and totally disabled eligible to receive this deduction, as well as making the amount of the deduction more commensurate with the annual incomes of these persons.

    The bill's proposal is as follows:

    For senior citizens and persons who are permanently and totally disabled whose income does not exceed $10,000, the annual property tax deduction would be equal to 10% of the amount of property taxes owed.

    For senior citizens and persons who are permanently and totally disabled whose income is greater than $10,000 but not more than $15,000, the annual property tax deduction would be 7.5% of the amount of property taxes owed.

    For senior citizens and persons who are permanently and totally disabled whose income is greater than $15,000 but not more than $20,000, the annual property tax deduction would be 5% of the amount of property taxes owed.

    The sponsor believes that the revision to the annual property tax deduction provided to senior citizens and persons who are permanently and totally disabled proposed by this bill provides necessary property tax relief to a group of New Jersey residents struggling to make ends meet in these recessionary times.

 

 

 

Revises annual senior and disabled citizens' property tax deduction.