This bill amends existing laws related to the state education property tax and the low- and moderate-income homeowners property tax relief program. It requires the Department of Revenue Administration (DRA) to receive and deposit all revenues from the state education property tax into the education trust fund, with municipalities mandated to remit these revenues quarterly starting in tax year 2026. The bill also adjusts the education tax rate to generate $363,000,000 annually, with annual inflation adjustments based on the Consumer Price Index. Additionally, it establishes a study committee to explore further property tax relief options, including extending the relief program to tenants and assessing the relationship between household income and property taxation.

Significant changes to the low- and moderate-income homeowners property tax relief program include reducing the maximum property value threshold for tax relief from $220,000 to $165,000 and increasing income eligibility limits for full tax relief. The income limit for single individuals is raised from $23,100 to $27,000, while the limit for heads of households increases from $29,400 to $39,500. The bill caps the maximum tax relief at $1,100 per claimant per fiscal year and sets a $30 million aggregate limit on tax relief checks issued. It also mandates annual inflation adjustments for certain amounts and requires the DRA to mail tax forms to eligible homeowners each year. The act is set to take effect on July 1, 2025, and will apply to taxable periods ending on or after April 1, 2026.

Statutes affected:
Introduced: 76:3, 76:8, 76:11-a, 198:39, 198:57