ASSEMBLY, No. 1648

STATE OF NEW JERSEY

INTRODUCED MARCH 4, 1996

By Assemblymen DALTON, GREENWALD, Romano,

 Doria and Garcia

An Act concerning deductions from real property taxes for certain residents of the State 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 1995; and $15,000.00 for the year 1996 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 1983 and in each year thereafter, $250.00.

    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 immediately, but shall remain inoperative until the approval by the voters of a constitutional amendment authorizing the increase in the annual income limitation to receive the annual $250 property tax deduction provided for herein.

STATEMENT

    This bill increases the annual income limitation for eligibility to receive the annual $250 property tax deduction provided to senior citizens and persons who are permanently and totally disabled from $10,000 to $15,000.

Increases annual income limitation to receive senior and disabled citizens' property tax deduction to $15,000.