Property Tax Reimbursement (Senior Freeze)

State

New Jersey

Year

2016

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

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

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 and lived in home for the past 3 years and continuously in the state for 10 years. Eligible claimants are only entitled to receive payments on one homestead within the State in the same tax year. In 2016, income limit is based on 2014 and 2015 income. The limit for both married and singles is $85,553 in 2014 and $70,000 in 2015. Applicants must meet all of the eligibility requirements for 2 consecutive years in order to be eligible. For seniors and disabled homeowners who move to another home within New Jersey, an eligible claimant in a previous tax year can qualify as an eligible claimant beginning in the second full tax year following the move to another homestead, despite not meeting the 3-year minimum residency and ownership requirements.

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_RR16

Footnotes

Income eligibility limits shall increase annually by 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 benefit and other retirement income. This is called the 2014 Reimbursement.

Sources

N.J. Rev. Stat. § 54:4-8.67 ~ § 54:4-8.75 (in effect for 2016)


Senior Freeze (Property Tax Reimbursement) Income Limit History [http://www.state.nj.us/treasury/taxation/pdf/ptr/incomehistory.pdf Accessed 11/2/2017]
View Archived Source

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