Homestead Property Tax Credit Rebate Program

State

New Jersey

Year

2007

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

Benefits are determined by a sliding scale of relief. For homeowners with income below $100,000, tax relief is 20% of property taxes, up to $2,000. For those with income between $100,001 and $150,000, the credit is 15% of taxes, up to $1,500 and it is a 10% credit for those with income below $250,000, up to $1,000 credit. The maximum property tax considered is $10,000. For renters, property taxes are assumed to be 18% of rent and relief is $50 plus the amount that taxes exceed 5% of income. For renters under age 65 and not disabled with income less than $100,000, the rebate is $150.

How is Benefit Disbursed

Direct payment to taxpayer

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Renter

Description of Eligibility Criteria

An applicant under the age of 65 with household income not in excess of $250,000 for homeowners, or $100,000 for renters is eligible. The applicant must have occupied the dwelling as a principal residence on October 1 of the year in which the rebate is sought. The maximum property tax considered is $10,000.

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_RR07

Footnotes

This program replaces the Fair Rebate Program previously available. 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)
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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