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 the 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 residency.

Additionally, the bill specifies that 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. The bill also clarifies that if a claimant did not occupy the homestead as their principal residence in the base year but moved from another homestead, the reimbursement will be based on the property taxes assessed on the current homestead for the base year, even if they did not reside there at that time.

Statutes affected:
Introduced: 54:4-8.67