ACR100

A CONCURRENT Resolution proposing to amend Article VIII, Section I, paragraph 4 of the Constitution of the State of New Jersey.

Whereas, Taxes assessed and levied against real property account for approximately forty percent of all tax revenues raised in this State each year, with a great deal of the resultant burden falling on homeowners, a burden which is particularly onerous for senior citizens and disabled persons who are less than 65 years of age; and

Whereas, Many senior citizens and disabled persons are bearing an increasingly unfair share of the property tax burden in that they live on fixed incomes which do not allow them to keep pace with the growth of property taxes; and

Whereas, Property tax increases not only undermine the continued ability of senior citizens and disabled persons to meet their tax payments, but also threaten their status as homeowners; and

Whereas, It is not in the interest of fairness, equitability, or public policy that senior citizens and disabled persons of limited means be forced to sell their homes or, that those in dire circumstances be threatened by tax sale at a time in their lives when they are least able to cope with the dislocations and trauma of relocation; and

Whereas, Municipalities benefit from the presence of a diverse mix of residents and should be allowed to take whatever measures are necessary to help senior citizens and disabled persons to remain municipal residents by helping to relieve their local tax burden without placing an undue burden on other municipal residents; and

Whereas, Municipalities should be provided with the flexibility necessary to establish a local share tax deduction over and above the existing tax deduction in order to relieve the property tax burden on the part of senior citizens and disabled persons of limited means to the extent possible; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

4. The Legislature may, from time to time, enact laws granting an annual deduction, from the amount of any tax bill for taxes on the real property, and from taxes attributable to a residential unit in a cooperative or mutual housing corporation, of any citizen and resident of this State of the age of 65 or more years, or any citizen and resident of this State less than 65 years of age who is permanently and totally disabled according to the provisions of the Federal Social Security Act, residing in a dwelling house owned by him which is a constituent part of such 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 tenant-shareholder in a cooperative or mutual housing corporation, but no such deduction shall be in excess of $160.00 with respect to any year prior to 1981, $200.00 per year in 1981, $225.00 per year in 1982, and $250.00 per year in 1983 and any year thereafter and such deduction shall be restricted to owners having an income not in excess of $5,000.00 per year with respect to any year prior to 1981, $8,000.00 per year in 1981, $9,000.00 per year in 1982, [and] $10,000.00 per year in 1983 through 1996, $15,000.00 per year in 1997, and $15,000.00 per year adjusted annually in direct proportion to any change of the federal Consumer Price Index in 1998 and any year thereafter, exclusive of benefits under any one of the following:

b. Any other program of the federal government or pursuant to any other federal law which provides benefits in whole or in part in lieu of benefits referred to in, or for persons excluded from coverage under, a. hereof including but not limited to the Federal Railroad Retirement Act and federal pension, disability and retirement programs; or

c. Pension, disability or retirement programs of any state or its political subdivisions, or agencies thereof, for persons not covered under a. hereof; provided, however, that the total amount of benefits to be allowed exclusion by any owner under b. or c. hereof shall not be in excess of the maximum amount of benefits payable to, and allowable for exclusion by, an owner in similar circumstances under a. hereof.

The Legislature shall enact laws to authorize any municipality in which a question has been approved by referendum held not less than 90 days following the passage of an ordinance by a two-thirds vote of the governing body to establish a local share tax deduction that, within the municipality, increases the amount of the deduction authorized pursuant to this paragraph; provided, however, that the total local share tax deduction shall not exceed $250.00 per year in 1997 but shall be adjusted annually in direct proportion to any change of the federal Consumer Price Index in 1998 and any year thereafter. The total deduction, including the local share, shall not exceed $500.00 per year in 1997, but shall increase or decrease in succeeding years as the local share is adjusted according to the federal Consumer Price Index. The ordinance and referendum question shall specify the amount of the local share tax deduction, which shall not exceed $250.00 per year in 1997 and $250.00 per year adjusted according to the federal Consumer Price Index in 1998 and any year thereafter. The local share, if approved, shall take effect in the calendar year following the holding of the referendum, be applicable in each year thereafter, and be adjusted annually according to this paragraph. A local share tax deduction, if approved, may be rescinded only according to the procedure set forth herein for the approval of the local share. A referendum on the question of establishing or on the question of rescinding a local share tax deduction shall not occur more than once in every three years. The cost of the local share tax deduction shall be met by the taxing district.

The surviving spouse of a deceased citizen and resident of the State who during his or her life received a deduction pursuant to this paragraph shall be entitled, so long as he or she shall remain unmarried and a resident of the same dwelling house situated on the same land with respect to which said deduction was granted, to the same deduction, upon the same conditions, with respect to the same real property or with respect to the same dwelling house which is situated on land owned by another or others, or with respect to the same cooperative or mutual housing corporation, notwithstanding that said surviving spouse is under the age of 65 and is not permanently and totally disabled, provided that said surviving spouse is 55 years of age or older.

Any such deduction when so granted by law shall be granted so that it will not be in addition to any other deduction or exemption, except a deduction granted under authority of paragraph 3 of this section, to which the said citizen and resident may be entitled, but said citizen and resident may receive in addition any homestead rebate or credit provided by law. The State shall annually reimburse each taxing district in an amount equal to one-half of the tax loss to the district resulting from the allowance of tax deductions, except for local share tax deductions, pursuant to this paragraph.

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:

If you favor the proposition printed below make a cross (X), plus (+) or check () in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check () in the square opposite the word "No."

		INCREASES INCOME LIMIT FOR ELIGIBILITY FOR SENIOR CITIZEN AND DISABLED PERSON PROPERTY TAX DEDUCTION; PERMITS LOCAL SHARE DEDUCTION BY ORDINANCE AND REFERENDUM AND AT MUNICIPAL EXPENSE.
	YES	Shall the amendment to Article VIII, Section I, paragraph 4 of the State Constitution, agreed to by the Legislature, authorizing the Legislature to increase the annual income limitation for eligibility to receive the annual deduction from property taxes assessed against dwellings owned by certain citizens and residents of the State, of age 65 or older or permanently and totally disabled, from $10,000 to $15,000 per year in 1997 and to $15,000 per year adjusted in direct proportion to any change in the federal Consumer Price Index in 1998 and annually thereafter; and requiring the Legislature to authorize municipalities, by referendum submitted to municipal voters upon passage of an ordinance by a two-thirds vote of the governing body, to establish and pay the expense of a local share property tax deduction for these same senior citizens or disabled persons, in the maximum amount of $250 per year in 1997, which would be adjusted annually in direct proportion to any change in the federal Consumer Price Index in 1998 and any year thereafter, and which would increase the existing property deduction from $250 to a maximum of $500 per year in 1997 and be adjusted annually thereafter as the local share is adjusted in direct proportion to any change of the federal Consumer Price Index, be approved?
		INTERPRETIVE STATEMENT
	NO	This constitutional amendment would increase the annual income limitation for the annual deduction from property taxes assessed against the residences of certain senior citizens or permanently and totally disabled residents. The income limitation would go from $10,000 to $15,000 in 1997 and be adjusted each year after that according to the federal Consumer Price Index. It also would require the Legislature to permit municipalities to establish a local share tax deduction up to a maximum amount of $250 in 1997. The local share deduction, with the existing property tax deduction for these same senior citizens or disabled persons, would provide a total property tax deduction up to a maximum amount of $500 in 1997. In each year after 1997, the maximum amount of the local share deduction would be adjusted for any change in the federal Consumer Price Index. To establish a local share deduction, the governing body would approve an ordinance by a two-thirds vote, and the voters would approve a referendum submitted to them not less than 90 days after adoption of the ordinance. The municipality would be required to absorb the cost of the local share deduction.

This concurrent resolution proposes a constitutional amendment authorizing the Legislature to make changes in the senior citizens and disabled persons property tax deduction.

The concurrent resolution authorizes the Legislature to enact an increase in the annual income limitation for eligibility to receive the annual deduction from property taxes assessed against dwellings owned by certain citizens, age 65 years or older, or permanently and totally disabled residents.

The income limit would be increased from $10,000 to $15,000 per year in 1997, and the limit would be adjusted annually beginning in 1998 in direct proportion to any change in the federal Consumer Price Index, as reported by the U.S. Department of Labor.

The proposed amendment also would require the Legislature to permit municipalities to establish a local share tax deduction from these property taxes for senior citizens who are 65 years of age or older, or persons who are under 65 but are totally and permanently disabled. The cost of the local share would be incurred by the municipality. The local share could be up to a maximum of $250 per year in 1997 and would be adjusted annually in direct proportion to any change in the federal Consumer Price Index in 1998 and any year thereafter.

The total deduction including the local share would be capped at $500 per year, adjusted annually beginning in 1998 as the local share is adjusted in direct proportion to any change of the Consumer Price Index.

In order to establish a local share, the municipal governing body would have to approve an ordinance to that effect by a vote of at least two-thirds of its governing body members. The question would then have to be submitted to the voters not less than 90 days following adoption of the ordinance. Both the ordinance and the referendum question would have to specify the amount of the deduction constituting the local share which shall not exceed the maximum amount for the year in which it is established. The proposed amendment would also limit the holding of such a referendum to once in any three-year period. If approved, the local share would take effect in the calendar year following approval of the referendum.

Additionally, this proposed amendment provides that the local share may be rescinded, but only through the same process used to establish the local share, and that the holding of such a rescinding referendum would be limited to once in any three-year period.

Currently, the Constitution limits this annual deduction benefit to $250 per year and establishes an income threshold of $10,000 per year for eligibility. The deduction amount was last raised in 1983 when it was raised to $250, and the income limitation was also last raised in 1983 when it was raised to $10,000.

Proposes constitutional amendment to increase income limitation for eligibility for senior and disabled property tax deduction and permits municipalities to establish local share senior and disabled property tax deduction.