This bill amends the criteria for establishing the base year for homestead property tax reimbursement in New Jersey, particularly after an eligible claimant relocates. Under current law, when a claimant moves to a new homestead, the base year is set to the first full tax year in which they reside in that new home, and they must wait an additional tax year to qualify for reimbursement. The proposed changes allow claimants to retain their eligibility immediately after moving, enabling them to qualify for reimbursement without the waiting period. The reimbursement payment will be based on the property taxes assessed on the new homestead for the tax year prior to their move.

Additionally, the bill introduces specific provisions for new construction. If the new homestead is classified as new construction—defined as a property that first became taxable during the year the claimant moves in or the year before—the base year will be the first full tax year following the completion of that construction. This change aims to streamline the reimbursement process for eligible claimants and ensure they are not penalized for relocating within New Jersey.

Statutes affected:
Introduced: 54:4-8.67