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 made based on an ad valorem assessment of real property, excluding PILOT payments. The bill modifies this definition to include payments made to a municipality in lieu of taxes, thereby allowing residents who pay PILOTs to qualify for homestead rebates. This change ensures that residents with incomes not exceeding $250,000 can receive a rebate or credit based on property taxes or rent constituting property taxes, which is defined as 18% of the rent paid during the tax year.

By including PILOT payments in the definition of property tax, the bill aims to provide equitable treatment for all residents, regardless of how their property taxes are assessed or paid. This amendment is significant as it aligns with the existing framework for the Affordable New Jersey Communities for Homeowners and Renters Rebates (ANCHOR rebates), ensuring that both property tax payers and those making PILOT payments are eligible for these rebates annually. The bill is set to take effect immediately upon enactment.

Statutes affected:
Introduced: 54:4-8.58