Increases annual income limitation to receive senior and disabled citizens' property tax deduction to $15,000.

A1795

ASSEMBLY, No. 1795

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ANTHONY S. VERRELLI

District 15 (Hunterdon and Mercer)

Assemblywoman LUANNE M. PETERPAUL

District 11 (Monmouth)

SYNOPSIS

���� Increases annual income limitation to receive senior
and disabled citizens' property tax deduction to $15,000.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning deductions from real property taxes
for certain residents of the State and amending P.L.1963, c.172.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 2 of P.L.1963,
c.172 (C.54:4-8.41) is amended to read as follows:

���� 2.��� Every person, a citizen
and resident of this State of the age of 65 or more years, or less than 65
years of age who is permanently and totally disabled, having an annual income
not in excess of the limitations provided in this section and residing in a dwelling
house owned by him which is a constituent part of his real property or residing
in a dwelling house owned by him which is assessed as real property but which
is situated on land owned by another or others, or residing as a tenant
shareholder in a cooperative or mutual housing corporation, shall be entitled,
annually, on proper claim being made therefor, to a deduction against the tax
or taxes assessed against such real property, to an amount not exceeding the
amount of said tax, the proportionate share of said tax attributable to his
unit, or the sum provided in this section, whichever is the lesser, but no such
deduction from taxes shall be in addition to any other deduction or exemption
from taxes to which said person may be entitled, except a veteran's deduction
provided under P.L.1963, c.171 (C.54:4-8.10 et seq.).� A citizen and resident
granted a deduction pursuant to this section may receive in addition any
homestead rebate or credit provided by law.

���� For the purposes of this
section, the annual income limitation shall be: $5,000.00 for any year prior to
1981; $8,000.00 for the year 1981; $9,000.00 for the year 1982;
[
and
]
$10,000.00 for
[
year
]

the years

1983
through 2022; and $15,000.00 for the year 2023
and each year
thereafter.

���� The sum deducted pursuant to
this section shall not exceed:� in any year prior to 1981, $160.00; in the year
1981, $200.00; in the year 1982, $225.00; and in the year 1983 and in each year
thereafter, $250.00.

���� For the purposes of this act:

���� a.���� The income of a married
person shall be deemed to include an amount equal to the income of the spouse
during the applicable income year, except for such portion of that year as the
two were living apart in a state of separation, whether under judicial decree
or otherwise.

���� b.��� The requirement of
ownership shall be satisfied by the holding of a beneficial interest in the
dwelling house where legal title thereto is held by another who retains a
security interest in the dwelling house.

(cf: P.L.1989, c.252, s.2)

���� 2.��� This act shall take
effect immediately, but shall remain inoperative until the approval by the
voters of a constitutional amendment authorizing the increase in the annual
income limitation to receive the annual $250 property tax deduction provided
for herein.

STATEMENT

���� This bill would amend current
law to increase the annual income threshold for eligibility to receive the
senior and disabled persons $250 property tax deduction from $10,000 to $15,000
once that increase is authorized by constitutional amendment.