SENATE, No. 117

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Senator PALAIA

 

 

An Act concerning property tax rebates to tenants residing in certain structures and amending P.L.1976, c.63.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Section 2 of P.L.1976, c.63 (C.54:4-6.3) is amended to read as follows:

    2. As used in this act unless the context clearly indicates a different meaning:

    a. "Qualified real rental property" means any building or structure or complex of buildings or structures in which four or more housing units are rented or leased or offered for rental or lease for residential purposes except hotels [,]; motels or other guesthouses serving transient or seasonal guests [, residents of a residential]; individual condominium or cooperative [,]units wherever situated; mutual housing corporation or continuing care retirement [community who are entitled to a homestead rebate pursuant to section 1 of P.L.1976, c.72 (C.54:4-3.80), and owner-occupied structures of three units or less] communities; and group residences in which the rent covers social or personal services and requires tenant participation in rehabilitative, medical or related programs.

    b. "Property tax reduction" means the difference between the amount of property tax paid or payable in any year on any qualified real rental property, exclusive of improvements not included in the assessment on the real property for the base year, and the amount of property tax paid in the base year, but such calculations for the property tax reduction shall exclude reductions resulting from judgments entered by county boards of taxation, the tax court, or by courts of competent jurisdiction. "Property tax reduction" shall also include any rebate or refund of school property taxes which may be provided pursuant to P.L.1976, c.113. "Property tax reduction" shall not include any amount in excess of that which is identified herein. Any such amount shall be retained by the property owner.

    c. "Base year" means, for qualified real rental property rented or leased or offered for rent or lease on or after the effective date of this act, the tax year prior to any year in which the property tax on that property is decreased from the 1990 tax year or decreased from any tax year since the 1990 tax year, whichever tax year results in the largest property tax decrease.

(cf: P.L.1991, c.65, s.1)

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill would amend the definition of "qualified real rental property" contained in the "Tenants' Property Tax Rebate Act," P.L.1976, c.63 (C.54:4-6.2 et seq.). Under the act, an owner of "qualified real rental property" must provide a property tax rebate to the tenants that reside therein. Currently, that definition excepts certain types of housing units, including all owner-occupied structures of three units or less, from the act's purview.

    This bill would limit the applicability of the act to any building or structure or complex of buildings or structures in which four or more housing units are rented for residential purposes. The bill would also except from the act's provisions: individual condominium or cooperative units wherever situated; all mutual housing corporations and continuing care retirement communities; and group residences in which the rent covers social or personal services and requires tenant participation in rehabilitative, medical or related programs.

 

 

 

Exempts certain structures from "Tenants' Property Tax Rebate Act."