SENATE, No. 247
STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Senator ZANE
An Act concerning property tax rebates to certain tenants and amending P.L.1976, c.63.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 5 of P.L.1976, c.63 (C.54:4-6.6) is amended to read as follows:
5. The property tax rebate for each tenant shall be computed by the property owner in the following manner:
a. [The] For those tenants who pay the entire amount of the rent on their rental unit without the benefit of any federal or State housing or rental subsidy, the property tax reduction on the qualified real rental property for the year shall be divided by the total annual rent for all dwelling units, occupied or unoccupied, on such property for the said year to determine the property tax rebate or credit as a fixed percentage of rent for every tenant. The annual rent of each residential unit shall be multiplied by such fixed percentage to determine the annual amount of property tax rebate or credit for each such unit. However, a municipality instead may provide by ordinance that the property tax reduction for residential rental property shall be divided by the total rentable square feet contained within all mobile home spaces or residential rental units on such property to determine the annual property tax rebate or credit per square foot for every residential unit in the entire property. The square footage of each unit shall be multiplied by such property tax rebate or credit per square foot to determine the annual amount of property tax rebate or credit for each residential unit. However where one or more residential rental units, spaces or equivalent are occupied by the property owner or his employees, the tax credit or rebate for the residential rental units on such property shall be computed by first reducing the property tax reduction by the proportion that the number of units occupied by the property owner or his employees bears to the total number of residential units on the property.
b. For those tenants who participate in a federal or State rental or housing assistance rent subsidy program, the tenant's property tax rebate shall be calculated as set forth in subsection a. of this section, but shall be proportionately reduced by the amount representing the percentage of the rent that is paid using the federal or State rental or housing subsidy, which reduction amount shall be retained by the property owner.
(cf: P.L.1977, c.81, s.4)
2. This act shall take effect immediately.
STATEMENT
This bill changes the method of calculation of the property tax rebate provided to certain tenants under the "Tenant's Property Tax Rebate Act," P.L.1976, c.63 (C.54:4-6.2 et seq.) by requiring a reduction of the amount of the rebate for tenants who receive certain rental or housing assistance subsidies from either federal or State government programs.
The bill requires that, for tenants who participate in a federal or State rental or housing assistance rent subsidy program, the rebate shall be calculated in the manner set forth in current law, but shall be proportionately reduced by the amount representing the percentage of the rent that is paid using the federal or State rental or housing subsidy. The bill provides that the reduction amount shall be retained by the property owner.
It is the intent of the sponsor that the full amount of the property tax rebates required to be paid to tenants under the "Tenant's Property Tax Rebate Act" shall be fully paid only to those tenants who pay the full monthly rent payment from their funds and not by using any type of federal or State rental or housing assistance subsidy funds. Concerns calculation of tenant property tax rebate owed to certain tenants under "Tenant's Property Tax Rebate Act."
Concerns calculation of tenant property tax rebate owed to certain tenants under “Tenant’s Property Tax Rebate Act.”