ACR71

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

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 through 1996, and $389.25 per year adjusted annually in direct proportion to any rise of the federal Consumer Price Index in 1997 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, and $15,500.00 per year adjusted annually in direct proportion to any rise of the federal Consumer Price Index in 1997 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 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 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."

		INCREASE IN PROPERTY TAX DEDUCTION AND ANNUAL INCOME LIMITATION FOR SENIOR CITIZENS AND PERSONS WHO ARE PERMANENTLY AND TOTALLY DISABLED
	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 property tax deduction, and to increase the annual income limitation to receive the 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, by increasing the annual deduction from $250.00 to $389.25, by increasing the annual income limitation for eligibility to receive the deduction from $10,000 to $15,500, and by adjusting annually both the $389.25 and $15,500 amounts in direct proportion to any rise of the Consumer Price Index, be approved?
		INTERPRETIVE STATEMENT
	NO	This proposed constitutional amendment would authorize an increase in the annual deduction from property taxes assessed against the residences of senior citizens, 65 years or older, or permanently and totally disabled residents, by increasing the deduction from $250.00 to $389.25 and adjusting annually the $389.25 amount according to any rise of the Consumer Price Index. The proposed amendment also would authorize an increase in the annual income limitation for eligibility to receive the annual deduction by increasing the income limitation from $10,000 to $15,500 and adjusting annually the $15,500 amount according to any rise of the Consumer Price Index.

This concurrent resolution proposes a constitutional amendment authorizing the enactment of an increase in 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 amendment would also authorize an increase in the annual income limitation for eligibility to receive the annual property tax deduction.

The proposed amendment would raise the deduction from $250 to $389.25, would raise the annual income limitation for eligibility for the deduction from $10,000 to $15,500, and would annually adjust both of these amounts in direct proportion to any rise of the Consumer Price Index for All Urban Consumers (CPI-U), as reported by the United States Department of Labor.

The $389.25 amount in this bill represents the current $250 deduction amount adjusted for an increase in the CPI-U for the period 1983 through March 1996 (CPI-U value=155.7). The $15,500 amount in this bill represents the current $10,000 income limitation amount adjusted for an increase in the CPI-U for the same period, with slight statistical rounding.

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 amount of property tax deduction and annual income limitation for eligibility to receive property tax deduction for senior and disabled citizens.