[First Reprint]

SENATE, No. 357

STATE OF NEW JERSEY

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Senators BUBBA and Matheussen

An Act concerning deductions from real property taxes 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 ¹[,];¹ $8,000.00 for the year 1981; $9,000.00 for the year 1982; ¹[and,]¹ $10,000 for ¹[year] years¹ 1983 ¹through 1996;¹ and ¹$15,000 for year 1997 and¹ 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 ¹[the year] years¹ 1983 ¹[and]¹ [in each year thereafter] ¹[the year 1984,] through 1996,¹ $250.00; and, in the year ¹[1985] 1997¹ and in each year thereafter ¹[$300.00] $500¹.

    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 ¹[immediately and shall be applicable for the tax year which follows the voters' approval of the Constitutional amendment authorizing this increase] January 1 next following the approval by the people of the State of New Jersey of an amendment to Article VIII, Section 1, paragraph 4 of the Constitution of the State of New Jersey, as proposed and agreed to by the Legislature, authorizing the Legislature to increase from $250 to $500 the annual property tax deduction, and to increase from $10,000 to $15,000 the annual income limitation for eligibility to receive the $500 deduction, from property taxes assessed against or attributable to the homes of citizens and residents of the State, of age 65 or older or permanently and totally disabled¹.

Increases to $500 the annual senior citizen's and disabled person's deduction from real property taxes.