[First Reprint]
SENATE, No. 1372
STATE OF NEW JERSEY
INTRODUCED JUNE 24, 1996
By Senators CARDINALE and KOSCO
An Act providing property tax relief for certain senior citizens and supplementing Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Senior Citizen Property Tax Relief Act."
2. The Legislature finds and declares that:
a. Taxes assessed and levied against real property account for approximately forty percent of the tax revenues raised in this State each year, with a great deal of the resultant burden falling on homeowners, a burden which is particularly onerous for senior citizens of this State;
b. Many senior citizens are bearing an increasingly unfair share of the property tax burden in that they live on fixed incomes which do not allow them to keep pace with the growth of property taxes;
c. Not only do property tax increases undermine the continued ability of senior citizens to meet their tax payments, but in fact threaten their status as homeowners;
d. This burden imposed by property tax increases on senior citizens is particularly unfair and inequitable given the fact that senior citizens consume fewer public services than other citizens, place fewer demands on local government and therefore contribute the least to the need for property tax increases;
e. It is not in the interest of fairness, equitability or public policy that senior citizens, who demand relatively little in the way of local expenditures, be faced with foreclosure as a result of tax increases, the need for which is generated by others, at a time in their lives when
they are least able to cope with the dislocations and trauma of relocation;
f. It is therefore fitting and proper and a valid public policy of this State that 1provision should be made by which1 senior citizens 1could1 be exempted from further property tax increases.
3. As used in this act:
"Exemption" means the senior citizen's exemption from property tax increases as provided in section 4 of this act. "Pretax year" means the calendar year immediately preceding the "tax year."
"Post-tax year" means the calendar year immediately following the "tax year."
"Tax year" means the calendar year in which the general property tax is due and payable.
4. 1[Every] Upon the adoption of an ordinance by the governing body of the municipality constituting the taxing district within which a person resides to permit an exemption under the provisions of this act, a1 person, 1who is1 a citizen and resident of this State of the age of 65 or more years 1and1 who, for a period of five years or longer, has resided in a dwelling house in this State owned by him which is a constituent part of his real property or has resided in a dwelling house owned by him which is assessed as real property but which is situated on land owned by another or others, shall, upon proper claim being made therefor, be exempted from increases in taxes imposed pursuant to chapter 4 of Title 54. Those senior citizens who are granted an exemption under this act on such residences shall not be precluded from receiving any other deductions or credits from such taxation to which they are otherwise entitled under law.
Mere seasonal or temporary residence within the State, of whatever duration, shall not constitute residence for the purposes of this act. Absence from a residence for a period of 12 months shall be prima facie evidence of abandonment of that residence.
5. The surviving spouse of a deceased senior citizen of this State who during his or her life received a real property tax exemption pursuant to this act shall be entitled, so long as he or she shall remain unmarried and a resident in the same dwelling house with respect to which said exemption was granted, to the same exemption, upon the same conditions, with respect to the same real property, notwithstanding that the surviving spouse is under the age of 65, provided that the surviving spouse was no more than 20 years younger than the deceased senior citizen who received the tax exemption during his or her life.
6. An exemption, as provided herein 1and if permitted by municipal ordinance1, shall be allowed upon written application therefor, which application shall be on a form prescribed by the Director, Division of Taxation, in the Department of the Treasury, and provided for the use of claimants hereunder by the governing body of the municipality constituting the taxing district in which the claim is to be filed, and upon approval of the application as provided in this act. Each assessor may at any time inquire into the right of a claimant to the continuance of a senior citizen's exemption hereunder and for that purpose he may require the filing of a new application or the submission of such proof as he shall deem necessary to determine the right of the claimant to continuance of such exemption.
7. An application for an exemption hereunder shall be filed with the assessor of the taxing district on or before December 31 of the pretax year. If an application is approved by the assessor, he shall allow an exemption from all additional taxes assessed against the real property to the claimant as described therein and shall indicate upon the assessment list and duplicates the approval thereof in such manner as shall be prescribed by rules of the Director of the Division of Taxation together with the proportionate share of such property deemed to be owned by the claimant for the purposes of this act if he is not the sole owner thereof.
Upon approval of the application for a tax exemption, the tax collector shall note in his records the existence of a contingent liability for taxes in the amount of the exemption in the event the exemption is subsequently disallowed on the basis of the taxpayer's residence or the transfer of title to the property to a person not entitled to such exemption, which contingent liability shall be reported on any tax search made on the property for which the exemption was approved.
The application, if not filed with the assessor within the aforementioned time, may be filed with the collector during the tax year, and, upon approval by the collector of such application, the collector shall determine the amount of the reduction in tax to which the claimant is entitled and shall allow a said amount as an offset against the tax then remaining unpaid. If the amount allowable as an offset shall exceed the amount of the tax then unpaid for that tax year, or if the application for a tax exemption is not filed with the collector until after all taxes for the tax year have been fully paid, the claimant may make application to the governing body of the municipality constituting the taxing district for the refund of any tax overpaid, but without interest, and the governing body may, in its discretion, direct the return of any tax deemed by it to have been overpaid by reason of claimant's failure to make timely application for a tax exemption; provided, however, that no application for a tax exemption for any previous tax year shall be allowed by any assessor, collector or governing body. When an application for a tax exemption is filed with and allowed by a collector, the collector shall promptly transmit such application and all exhibits attached thereto, or a photocopy thereof, to the assessor of the taxing district. Upon receipt thereof the assessor shall review the application and if approved by him, it shall have the same force as if originally filed with him.
8. a. Every fact essential to support a claim for an exemption hereunder shall exist on October 1 of the pretax year, except as in this section otherwise provided. Every application by a claimant therefor shall establish that the claimant is or will be on or before December 31 of the pretax year 65 or more years of age and that the claimant was, on October 1 of the pretax year, (1) for a period of five years or longer, the owner of a dwelling house which is a constituent part of the real property for which the exemption is claimed, or the owner of a real property for which the exemption is claimed, or the owner of a dwelling house which is assessed as real property but which is situated on land owned by another or others and (2) residing in said dwelling house.
b. In the case of claims for an exemption authorized by section 5 of this act a claimant therefor shall, upon the death of his or her spouse, establish that he or she was no more than 20 years younger than the decedent and remains unmarried and that he or she was, on October 1 of the pretax year, (1) the owner of a dwelling house which is a constituent part of the real property for which the exemption is claimed, or the owner of a dwelling house which is assessed as real property but which is situated on land owned by another or others and (2) residing in said dwelling house. The collector or the assessor of the taxing district, as the case may be, shall establish whether the deceased spouse of the claimant received an exemption.
9. A claim having been filed with, and allowed by, the assessor 1[on and after the effective date of this act]1 shall continue in force from year to year thereafter without the necessity for further claim so long as the claimant shall be entitled to an exemption hereunder. It shall be the duty of every claimant to inform the assessor of any change in the status of his residence or property ownership which may affect his right to continuance of such exemption.
10. The director may promulgate such rules and regulations and prescribe such forms as he shall deem necessary to implement this act. He may, in his discretion, eliminate the necessity for sworn application, in which event all declarations by the claimant shall be considered as if made under an oath and the claimant, as to false declarations, shall be subject to the penalties as provided by law for perjury.
11. Each assessor and collector and his duly designated assistants are hereby authorized to take and administer the oath, where required, on any claim for or a statement in connection with an exemption hereunder and no charge shall be made for the taking of any affidavit or the preparation of any form required by this act.
12. This act shall apply to property taxes due and payable beginning January 1 next following 1[enactment] adoption of an ordinance by the governing body of the municipality to permit exemptions under the provisions of this act1 and thereafter, and shall not affect the obligation, lien, or duty to pay any taxes, interest or penalties which have accrued or may accrue by virtue of any assessment made or which may be made with respect to taxes levied for any year prior to the year in which the exemption becomes effective.
13. On or before June 15 of each year, each county board of taxation shall, on a form prescribed by the director, certify to the director from the tax lists certified with it for each taxing district for the current tax year the following:
a. the number of tax exemptions allowed for the current tax year;
b. the total dollar amount of tax exemptions allowed for the current tax year;
c. separately, the number and dollar amount of tax exemptions allowed or disallowed, as certified by the collector, from the time of certification made the previous year and prior to certification for the current year;
d. the totals for a., b., and c. above, by district and for the county as a whole.
14. The director may inspect all records in the office of the collector and the assessor with respect to claims and allowances for tax exemption.
15. For each year, each county board of taxation shall include in the abstract of ratables and exemptions prepared pursuant to R.S.54:4-52 the full estimated amount of the tax exemptions as provided for in this act, but said amount shall not be included in the total on which the tax rate is to be computed.
16. This act shall take effect immediately.
Permits municipalities to provide tax relief for certain senior citizens.