Changes to NJ Homestead and Property Tax Programs

by Sukhvir Boparai, CPA

These are the changes to 2009 NJ Homestead Rebate Program and Property Tax Reimbursement Program (seniors) under the FY 2011 Budget:

Homestead Program:

Homeowners:

The State will not be mailing Rebate Applications to senior and disabled homeowners in May 2010 and to all other homeowners in July as it has done in the past.

Applications for 2009 homeowner rebate will be mailed to eligible homeowners in the fall.

Eligibility requirements for the 2009 homeowner rebate remain the same as last year.

The eligibility criteria used for the 2008 homeowner rebate are as follows:

Domicile (permanent legal residence) is in New Jersey.
Own and occupy a home in New Jersey that was the applicant's principal residence on October 1, 2008.
The home must be subject to local property taxes, and 2008 property taxes must have been paid. However, the State Budget mandates that the 2008 rebate be calculated using 2006 property taxes.
New Jersey gross income for 2008 does not exceed certain limits. For homeowner's age 65 or older and/or disabled on December 31, 2008, the income limit was $150,000 or less. For homeowners under age 65 and not disabled on December 31, 2008, the income limit was $75,000 or less.

Instead of receiving a check in the summer or fall, eligible homeowners will receive their homestead benefit for 2009 as a credit on the property tax bill for the second quarter of 2011. The filing process remains the same.

Tenants:

Tenants will no longer receive the homestead rebates.

Property Tax Reimbursement Program (seniors and disabled):

The state will not be accepting new applications during fiscal year 2011 for this program.

Under the changes, only those applicants who received a reimbursement for tax year 2008, and whose income for 2009 does not exceed last year's income limit of $70,000 would be eligible to receive a reimbursement for 2009, provided they meet all the following other program requirements.

For 2008 and 2009, has been age 65 or older or receiving Federal Social Security disability benefits as of December 31. If receiving Federal Social Security disability, you (or your spouse/civil union partner) must have received such benefits based on your own social security number (you do NOT qualify if you are receiving Social Security disability benefits on behalf of someone else); and
Have lived in New Jersey continuously since before January 1, 1999, as either a homeowner or a renter; and
Have owned and lived in the home (or have leased a site in a mobile home park on which you have placed a manufactured or mobile home that you own) for which the reimbursement is being claimed since before January 1, 2006; and
Have paid the full amount of the property taxes due on the home for 2008 by June 1, 2009, and for 2009 by June 1, 2010; and
Have total income for 2008 and 2009 that is $70,000 or less. (Under the terms of the State Budget, total income for 2009 cannot exceed $70,000. The original income limit was $80,000.) These limits apply regardless of marital/civil union status. However, applicants who are married or in a civil union must report combined income of both spouses/CU partners.

The 2009 rebate amount will not exceed the 2008 approved amount.

The applicant's, who were not eligible in 2008 to receive the rebate, will not receive it in 2009 either even if they meet the eligibility requirements in 2009.

The Division of Taxation will accept applications from residents who either did not file a 2008 application or who filed an application for 2008 that was not approved for payment.

While these applicants will not receive reimbursements for 2009, they should apply to establish eligibility in future years.

The filing deadline extended to Nov 1, 2011.