Homestead Benefit Program for Senior Citizens and Disabled Persons

State

New Jersey

Year

2007

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

Benefits are based on property taxes paid in 2006 up to a maximum of $10,000 and are determined by a sliding scale of relief based on income. The benefit amount cannot exceed the homestead rebate paid in 2006 unless there has been a change in the taxpayer’s status. Benefits are available for homeowners age 65 and over or disabled with income below $250,000. The rebate is the larger of a percentage of 2006 property taxes or 2006 property taxes in excess of 5% of 2007 income, subject to a maximum. For those with income below $100,000 the benefit is 20% of property taxes. For those with income below $150,000 the benefit is 15% of taxes. For those below $250,000 the benefit is 10% or $500. There is no benefit for those with income over $250,000. An alternative calculation is the amount by which property taxes exceed 5% of income, with a maximum. The relief is which ever is greater. Rebates for tenants are limited to those with income up to $100,000. The rebate declines over income, divided in 4 buckets. For those under 65, with income below $20,000, the rebate is $350, declining to $80 for those with income between $50,001 and $100,000. The rebate is based on taxes in excess of 5% of income plus $50 up to $860 for those with income up to $70,000 ($35,00 for single and for those with income up to $100,000 (both married and single) the rebate is limited to $160. Property taxes are considered to be 18% of rent.

How is Benefit Disbursed

Credit to the property tax bill

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

An applicant's household income cannot exceed $200,000 for homeowners, or $100,000 for renters. The applicant must have occupied the dwelling as a principal residence on October 1 of the year in which the rebate is sought.

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

NJ107_RR07

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.

Sources

N.J. Rev. Stat. §54:4-8.59 ~ § 54:4-8.60 (in effect for 2007)
New Jersey State Tax Notes Summer 2007 "Changes to Rebate Program" [http://www.state.nj.us/treasury/taxation/pdf/pubs/stn/summer07.pdf Accessed 06/15/2017]


Homestead Property Tax Credit/Rebate FAQs (2006), New Jersey Division of Taxation [http://www.state.nj.us/treasury/taxation/pdf/homestead/06hrfaq.pdf Accessed on 05/03/2010] View Archived Source

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