Fair Rebate for Seniors Program

State

New Jersey

Year

2006

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

For homeowners age 65 and older or disabled relief is determined according to three brackets with relief ranging from $1,000 to $2,000 if income is up to $70,000, to $500 if income is $125,000 to 200,000. For non-elderly, non-disabled homeowners, relief ranges from $350 if income is up to $70,000, to $200 if income is between $125,001 to $200,000. Each year the maximum rebate is derived by multiplying the maximum homestead rebate allowed in the prior tax year by the cost-of-living adjustment. The cost-of-living adjustment is calculated by using the consumer price index for all consumers for the nation. Benefit is disbursed as a direct rebate for homeowners and as an income tax credit for renters.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Renter

Description of Eligibility Criteria

The individual must be 65 years or older or disabled, including blindness and they must be a homeowner or a renter. The income ceiling is $200,000 for homeowners and $100,000 for renters.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state pays the rebate directly to the taxpayer.

Record ID

NJ101_RR06

Footnotes

In 2007, New Jersey A 1, signed into law as Chapter 62, established a homestead property tax credit program that replaces the Fair Rebate Program in 2006. The authorizing statute provides for either a credit against the homeowner's next property tax bill or a rebate to be issued as a check. Due to confidentiality concerns and other implementation issues, the 2006 benefit will be paid as a rebate.

Sources

N.J. Rev. Stat. §54:4-8.59 ~ § 54:4-8.60 (in effect for 2006)

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