Property Tax Reimbursement (Senior Freeze)

State

New Jersey

Year

2006

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Credit

Benefit

The state reimburses to the taxpayer the difference between the amount of property tax paid in the base year (i.e. first year of meeting all eligibility requirements) and the amount paid in the current year. The calculation of the reimbursement uses the gross amount of property taxes before deducting the senior citizen and/or veteran's property tax deductions for which the applicant is eligible.

How is Benefit Disbursed

Direct payment to taxpayer

Eligible Property Type

Commercial

Residential

Characteristics of Eligible Property

Eligible properties include multiple-family buildings with up to 4 units with no more than 1 commercial unit, as well as mobile homes. Vacation homes are not eligible.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Other Criteria

Description of Eligibility Criteria

Applicants must be at least 65 years of age or receiving Federal Social Security disability benefits. They must be the owner of the homestead or a manufactured or mobile home or a lessee of a site in a mobile home park. Eligible claimants are only entitled to receive payments on one homestead within the State in the same tax year. The home owner must have owned the home for 3 years and lived in the state continuously for 10 years. To be eligible, income limits are based on 2004 and 2005 annual income. The limit for married couples was $50,113 in 2004 and $51,466 in 2005. For singles, the income limit was $40,869 in 2004 and $41.972 in 2005. Applicants must meet all of the eligibility requirements for 2 consecutive years in order to be eligible.

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 will mail the payment of the homestead property reimbursement to each eligible claimant.

Record ID

NJ104_RR06

Footnotes

Income eligibility limits shall increase annually the the maximum Social Security benefit cost of living increase. The director shall adopt new income limits annually by notice or regulation. Total income includes Social Security benefits and other retirement income.

Sources

N.J. Rev. Stat. § 54:4-8.67 ~ § 54:4-8.75 (in effect for 2006)
Property Tax Reimbursement Program (2006), New Jersey Department of Taxation [http://www.state.nj.us/treasury/taxation/pdf/other_forms/ptr/06ptr1in.pdf Accessed on 05/03/2010] View Archived Source Property Tax Reimbursement
Income Limits History (no date) New Jersey Department of Taxation
[http://www.state.nj.us/treasury/taxation/pdf/homestead/ptr_income_chart.pdf Accessed 4/10/2011] View Archived Source

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