This bill redefines the definition of net asset and residence for the elderly property tax exemption. It expands the income eligibility threshold and the exemption amount. The bill also increases the residency requirement from 3 to 5 consecutive years. It clarifies that net assets do not include investment funds unless they are cashed in or withdrawn, and that disbursements from investments, including required minimum distributions (RMDs), are considered assets. The bill also specifies that the residence for the exemption does not include attached dwelling units and unattached structures used for nonresidential purposes or property held in a qualified irrevocable trust. The bill increases the minimum net income threshold for the exemption to $30,000 for single persons and $60,000 for married persons. It also increases the minimum net asset threshold to $350,000 or the median residential property value of the community, whichever is lower. The bill sets the maximum exemption amount at $10,000 and the minimum exemption amount at $5,000. The bill also includes provisions for fraud and the payment of property taxes in cases of fraud. The bill will take effect on April 1, 2025.

Statutes affected:
Introduced: 72:39-b