STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Assemblywoman NANCY J. PINKIN
District 18 (Middlesex)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblyman JOSEPH A. LAGANA
District 38 (Bergen and Passaic)
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
Co-Sponsored by:
Assemblymen McKeon, Benson, Assemblywoman Sumter, Assemblymen Gusciora, DeAngelo, Coughlin, Johnson, Assemblywomen Mosquera and Chaparro
SYNOPSIS
Requires distribution of homestead benefits on or before October 31 of the State fiscal year during which an appropriation is made.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the timing of distribution of homestead benefits, amending P.L.1990, c.61.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.1990, c.61 (C.54:4-8.63) is amended to read as follows:
7. a. The State Treasurer [annually on or before October 31], upon certification of the director and upon warrant of the Director of the Division of Budget and Accounting, shall pay and distribute the amount of a homestead rebate payable under this act that is [claimed for the prior tax year] due to each claimant whose rebate is approved by the director on or before October 31 of the State fiscal year for which an appropriation is made for this purpose.
b. A homestead credit allowed by the Director of the Division of Taxation to a claimant who claimed a homestead credit pursuant to section 3 of P.L.1990, c.61 (C.54:4-8.59), and whose homestead is not a unit in a cooperative, mutual housing corporation or continuing care retirement community, shall be paid by the State Treasurer, through electronic funds transfer made by the director to the local property tax account maintained by the local tax collector for the homestead of the claimant as the claimant shall identify, in equal installments after the application for the credit has been approved, at the dates and in the manner as the director shall determine to best coincide with the next local property tax quarterly due dates of August 1 and November 1. Notice of payments of credit installments shall be provided to the claimant and the appropriate local tax collector.
c. Notwithstanding subsection b. of this section, the director shall provide a homestead benefit under this act as a credit only if the director can ensure that the benefit will be applied to the appropriate taxpayer. Otherwise, the director may remit a homestead benefit to an eligible taxpayer as a rebate.
d. Notwithstanding subsection b. of this section, a resident homeowner of this State who is 65 years of age or older at the close of the tax year or who is allowed to claim a personal deduction as a blind or disabled taxpayer pursuant to subsection (b) of N.J.S.54A:3-1, shall receive the credit in the form of a rebate payment in calendar year 2007, but will receive credits in future years starting in calendar year 2008, unless the claimant elects in the claimant's homestead credit application to receive a rebate.
e. Notwithstanding subsection b. of this section, if the director determines that homestead benefits for a particular tax year cannot be administered and delivered as credits efficiently, the director may remit homestead benefits for that year as rebates.
(cf: 2007, c.62, s.25)
2. This act shall take effect immediately.
STATEMENT
This bill requires the distribution of homestead benefits on or before October 31 of the State fiscal year for which an appropriation of homestead benefits is made.
Currently, the homestead benefit law requires the distribution of benefits for the prior tax year by October 31. The benefits for property taxes paid in property tax year 2012 should, by statute, have been paid in October of 2013.
Due to an “unanticipated revenue shortfall” in State fiscal year 2012, the homestead benefits for property tax year 2011 were first delayed from October 2012 to May 2013, and due to an “unanticipated revenue shortfall” in State fiscal year 2013 were delayed a second time until August 2013.
This Legislature, hopeful of setting things again upon a reasonable annual schedule, provided for the distribution of the next round of homestead benefits, for property tax year 2012, in August of 2014. However, that appropriations enactment was line-item vetoed by the Governor to set the date of the next anticipated distribution to May of 2015, or 21 months after the prior distribution.
This bill returns the distribution of the homestead benefit to an annual October distribution, or 14 months after the prior distribution.