This bill amends the Homestead Property Tax Credit Act to extend eligibility for homestead rebates to residents who make payments in lieu of taxes (PILOTs) to municipalities. The current law defines property tax as payments based on an ad valorem assessment of real property, excluding PILOT payments. The bill modifies this definition to include PILOTs, thereby allowing residents who do not pay traditional property taxes to qualify for rebates. Under the act, residents with incomes not exceeding $250,000 can receive a rebate or credit based on a percentage of property taxes or rent constituting property taxes paid on their homestead, with a maximum rebate of $10,000.

By including PILOT payments in the definition of property tax, the bill ensures that all eligible residents, regardless of their method of tax payment, can benefit from the homestead rebate program. This change is significant as it aligns with the broader goal of the Homestead Property Tax Credit Act, which also serves as the foundation for the Affordable New Jersey Communities for Homeowners and Renters Rebates (ANCHOR rebates). The bill is set to take effect immediately upon enactment.

Statutes affected:
Introduced: 54:4-8.58