SENATE, No. 1148

STATE OF NEW JERSEY

INTRODUCED MAY 16, 1996

By Senator BAER

An Act requiring the Joint Budget Oversight Committee to develop a fiscal plan to phase in full homestead property tax rebates, supplementing P.L.1990, c.61 (C.54:4-8.57 et seq.).

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

    1. In order to restore the full level of property tax relief to all property tax payers as provided in the "Homestead Property Tax Rebate Act of 1990," P.L.1990, c.61 (C.54:4-8.57 et seq.), in a fiscally prudent manner that will not result in adverse impacts upon other State programs beneficial to State and local taxpayers, the Joint Budget Oversight Committee shall develop a multi-year fiscal plan to phase in full homestead property tax rebates to all claimants as provided under P.L.1990, c.61. Copies of the plan shall be provided by the committee to the Governor, the President of the Senate and the Speaker of the General Assembly.

    2. This act shall take effect immediately.

STATEMENT

    This bill requires the Joint Budget Oversight Committee to develop a fiscally prudent plant to phase in a resumption of the statutory homestead property tax rebate program for all New Jersey claimants. The original 1990 statutory program provided a minimum property tax rebate of $150 to homeowners with less than $70,000 annual income and a minimum rebate of $100 to homeowners with annual income between $70,000 and $100,000. Tenants were guaranteed a minimum rebate of $65 at annual incomes below $70,000 and $35 for annual incomes between $70,000 and $100,000.

    Since fiscal year 1993 the statutory homestead property tax rebate program has been suspended by provisions of annual appropriations acts and provides full statutory homestead property tax rebate benefits to only senior citizens and disabled residents. Residents with annual income of $40,000 or less who are not seniors or disabled may receive, according to language in the annual appropriations act, a rebate of $30 for tenants and $90 for homeowners.

    The homestead property tax rebate program under the original 1990 statutory program provides middle income property tax payers with an effective manner of reducing the impact of increasing property taxes. Additionally, the statutory program returns a higher rebate for lower income citizens who are least able to absorb the effects of property tax increases.

Requires the Joint Budget Oversight Committee to develop a plan to re-establish the full Homestead Rebate program.