Revises criteria to establish base year for homestead property tax reimbursement after relocation.

A4674

ASSEMBLY, No. 4674

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Assemblyman� DONALD A. GUARDIAN

District 2 (Atlantic)

SYNOPSIS

���� Revises criteria to establish base year for homestead
property tax reimbursement after relocation.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the base year for a homestead
property tax reimbursement and amending P.L.1997, c.348.

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

����� 1.�
Section 1 of P.L.1997, c.348 (C.54:4-8.67) is amended to read as follows:

����� 1.�
As used in P.L.1997, c.348 (C.54:4-8.67 et seq.):

����� "Base
year" means, in the case of a person who is an eligible claimant on or
before December 31, 1997, the tax year 1997; and in the case of a person who
first becomes an eligible claimant after December 31, 1997, the tax year in
which the person first becomes an eligible claimant.� In the case of an
eligible claimant who subsequently moves from the homestead for which the
initial eligibility was established, the base year shall be the first full tax
year
prior to the
year during which the person resides in the new homestead.�
[
Provided however, a base year for an eligible
claimant after such a move shall not apply to tax years commencing prior to
January 1, 2009.
]
�
If the current homestead constitutes new
construction, then the base year shall be deemed to be the first full tax year
following completion of the new construction.
� In the case of an eligible
claimant who receives a Stay NJ property tax credit in lieu of a homestead
property tax reimbursement pursuant to section 4 of P.L.2023, c.75
(C.54:4-8.75d), the base year of that eligible claimant shall remain unchanged.

����� "Commissioner"
means the Commissioner of Community Affairs.

����� "Director"
means the Director of the Division of Taxation.

����� "Condominium"
means the form of real property ownership provided for under the
"Condominium Act," P.L.1969, c.257 (C.46:8B-1 et seq.).

����� "Cooperative"
means a housing corporation or association which entitles the holder of a share
or membership interest thereof to possess and occupy for dwelling purposes a
house, apartment or other unit of housing owned or leased by the corporation or
association, or to lease or purchase a unit of housing constructed or to be
constructed by the corporation or association.

����� "Disabled
person" means an individual receiving monetary payments pursuant to Title
II of the federal Social Security Act (42 U.S.C. s.401 et seq.), or receiving
disability payments pursuant to the federal Railroad Retirement Act, 45 U.S.C.
s.231 et seq., on December 31, 1998 or on December 31 in all or any part of the
year for which a homestead property tax reimbursement under this act is
claimed.

����� "Dwelling
house" means any residential property assessed as real property which
consists of not more than four units, of which not more than one may be used
for commercial purposes, but shall not include a unit in a condominium,
cooperative, horizontal property regime, or mutual housing corporation.

����� "Eligible
claimant" means a person who:

����� is
65 or more years of age on or before December 31 of any tax year for which a
homestead property tax reimbursement is sought or who is a disabled person;

����� is
an owner of a homestead or the lessee of a site in a mobile home park on which
site the applicant owns a manufactured or mobile home for the entire tax year
for which a homestead property tax reimbursement is sought;

����� has
an annual income of less than $17,918 in tax year 1998, less than $18,151 in
tax year 1999, or less than $37,174 in tax year 2000 if single or, if married,
whose annual income combined with that of the spouse is less than $21,970 in
tax year 1998, less than $22,256 in tax year 1999, or less than $45,582 in tax
year 2000, which income eligibility limits for single and married persons shall
be subject to adjustments in tax years 2001 through 2006 pursuant to section 9
of P.L.1997, c.348 (C.54:4-8.68);

����� has
an annual income of $60,000 or less in tax year 2007, $70,000 or less in tax
year 2008, or $80,000 or less in tax year 2009, if single or married, which
income eligibility limits shall be subject to adjustments in tax years 2010
through 2021 pursuant to section 9 of P.L.1997, c.348 (C.54:4-8.68);

����� has
an annual income of $150,000 or less in tax year 2022, if single or married,
which income eligibility limits shall be subject to adjustments in subsequent
tax years pursuant to section 9 of P.L.1997, c.348 (C.54:4-8.68);

����� has,
for at least three calendar years, including the entire tax year for which a
homestead property tax reimbursement is sought, owned and resided in the
homestead for which a homestead property tax reimbursement is sought prior to
the date that an initial application for a homestead property tax reimbursement
is filed.� A person who has been an eligible claimant for a previous tax year
shall qualify as an eligible claimant
[
beginning the second full tax year
]

immediately
following a move to another
homestead in New Jersey, despite not meeting the three-year minimum residency
and ownership requirement required for initial claimants under this paragraph,
provided that the person satisfies the income eligibility limits for the tax
year.� Provided, however,
that immediate
eligibility
[
beginning in a second full tax year
]
after such a move shall not apply to tax years
commencing prior to
[
January 1, 2010
]

the first full tax year next following the effective date of P.L.��� , c.���
(pending before the Legislature as this bill)
.

����� "Homestead"
means:

����� a
dwelling house and the land on which that dwelling house is located which
constitutes the place of the eligible claimant's domicile and is owned and used
by the eligible claimant as the eligible claimant's principal residence;

����� a
site in a mobile home park equipped for the installation of manufactured or
mobile homes, where these sites are under common ownership and control for the
purpose of leasing each site to the owner of a manufactured or mobile home for
the installation thereof and such site is used by the eligible claimant as the
eligible claimant's principal residence;

����� a
dwelling house situated on land owned by a person other than the eligible
claimant which constitutes the place of the eligible claimant's domicile and is
owned and used by the eligible claimant as the eligible claimant's principal
residence;

����� a
condominium unit or a unit in a horizontal property regime or a continuing care
retirement community which constitutes the place of the eligible claimant's
domicile and is owned and used by the eligible claimant as the eligible
claimant's principal residence.

����� In
addition to the generally accepted meaning of "owned" or
"ownership," a homestead shall be deemed to be owned by a person if
that person is a tenant for life or a tenant under a lease for 99 years or
more, is entitled to and actually takes possession of the homestead under an
executory contract for the sale thereof or under an agreement with a lending
institution which holds title as security for a loan, or is a resident of a
continuing care retirement community pursuant to a contract for continuing care
for the life of that person which requires the resident to bear, separately
from any other charges, the proportionate share of property taxes attributable
to the unit that the resident occupies;

����� a
unit in a cooperative or mutual housing corporation which constitutes the place
of domicile of a residential shareholder or lessee therein or of a lessee or
shareholder who is not a residential shareholder therein, which is used by the
eligible claimant as the eligible claimant's principal residence.

����� "Homestead
property tax reimbursement" means payment of the difference between the
amount of property tax or site fee constituting property tax due and paid in
any year on any homestead, exclusive of improvements not included in the
assessment on the real property for the base year, and the amount of property
tax or site fee constituting property tax due and paid in the base year, when
the amount paid in the base year is the lower amount, but such calculations
shall be reduced by any current year property tax reductions or reductions in
site fees constituting property taxes resulting from judgments entered by
county boards of taxation or the State Tax Court.�
When an eligible claimant
did not occupy the homestead as a principle residence in the base year but
occupied another homestead in the base year, and then moved from that former
homestead into the current homestead, the payment shall be based on the property
taxes assessed on the current homestead for the claimant�s base year, even
though the claimant did not occupy the current homestead as a principle
residence at that time.

����� "Horizontal
property regime" means the form of real property ownership provided for
under the "Horizontal Property Act," P.L.1963, c.168 (C.46:8A-1 et
seq.).

����� "Income"
means all New Jersey gross income required to be reported pursuant to the
"New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., before the
application of any authorized exclusion or deduction, except also including:
interest income excluded from taxation pursuant to N.J.S.54A:6-14; pension and
annuity income excluded from taxation pursuant to N.J.S.54A:6-10; income
derived from distributions from, or roll over to, a Roth IRA excluded from
taxation pursuant to N.J.S.54A:6-28; other retirement income excluded from
taxation pursuant to N.J.S.54A:6-15; and Social Security income excluded from
taxation pursuant to N.J.S.54A:6-2, as self-reported by the homeowner.

����� "Manufactured
home" or "mobile home" means a unit of housing which:

����� (1)
�Consists of one or more transportable sections which are substantially
constructed off site and, if more than one section, are joined together on
site;

����� (2)
�Is built on a permanent chassis;

����� (3)
�Is designed to be used, when connected to utilities, as a dwelling on a
permanent or nonpermanent foundation; and

����� (4)
�Is manufactured in accordance with the standards promulgated for a
manufactured home by the Secretary of the United States Department of Housing
and Urban Development pursuant to the "National Manufactured Housing
Construction and Safety Standards Act of 1974," Pub.L.93-383 (42 U.S.C.
s.5401 et seq.) and the standards promulgated for a manufactured or mobile home
by the commissioner pursuant to the "State Uniform Construction Code
Act," P.L.1975, c.217 (C.52:27D-119 et seq.).

����� "Mobile
home park" means a parcel of land, or two or more parcels of land,
containing no fewer than 10 sites equipped for the installation of manufactured
or mobile homes, where these sites are under common ownership and control for
the purpose of leasing each site to the owner of a manufactured or mobile home
for the installation thereof and where the owner or owners provide services,
which are provided by the municipality in which the park is located for
property owners outside the park, which services may include but shall not be
limited to:

����� (1)
�The construction and maintenance of streets;

����� (2)
�Lighting of streets and other common areas;

����� (3)
�Garbage removal;

����� (4)
�Snow removal; and

����� (5)
�Provisions for the drainage of surface water from home sites and common areas.

����� "Mutual
housing corporation" means a corporation not-for-profit, incorporated
under the laws of this State on a mutual or cooperative basis within the scope
of section 607 of the Lanham Act (National Defense Housing), Pub.L.849, (42
U.S.C. s.1521 et seq.), as amended, which acquired a National Defense Housing
Project pursuant to that act.

�����
�New
construction� means a homestead that first became taxable during the year in
which the eligible claimant initially takes residence in the homestead, or the
year prior thereto.

����� "Principal
residence" means a homestead actually and continually occupied by an
eligible claimant as his or her permanent residence, as distinguished from a
vacation home, property owned and rented or offered for rent by the claimant,
and other secondary real property holdings.

����� "Property
tax" means the general property tax due and paid as set forth in this
section, and shall include the amount of property tax credit as defined in
section 1 of P.L.2018, c.11 (C.54:4-66.6), on a homestead, but does not include
special assessments and interest and penalties for delinquent taxes.� For the
sole purpose of qualifying for a benefit under P.L.1997, c.348 (C.54:4-8.67 et
seq.), property taxes paid by June 1 of the year following the year for which
the benefit is claimed will be deemed to be timely paid.�
In the case of an
eligible claimant who moves to a homestead after establishing a base year at
another homestead, the property tax shall include any amount of the general
property tax due and paid for the tax year by the previous owner of the
homestead, provided that the eligible claimant resides in the homestead on
December 31 of the tax year for which the homestead property tax reimbursement
is being claimed
.

����� "Site
fee constituting property tax" means 18 percent of the annual site fee
paid or payable to the owner of a mobile home park.

����� "Tax
year" means the calendar year in which a homestead is assessed and the
property tax is levied thereon and it means the calendar year in which income
is received or accrued.

(cf:
P.L.2025, c.24, s.1)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill revises the criteria
for establishing a claimant�s base year under the homestead property tax
reimbursement program.� Under current law, when an eligible claimant moves from
one home to another, the base year changes to the first full tax year during
which the person resides in the new homestead, and then a claimant is to wait
an additional tax year in order to be deemed �eligible� for the homestead
property tax reimbursement.

���� The bill allows the claimant
to retain eligibility following a move to another New Jersey homestead.� Thus,
a claimant is to be able to qualify as an eligible claimant immediately
following a move and is not to be required to wait an additional tax year in
order to claim a reimbursement.� In this case the homestead reimbursement
payment is to be based on the property taxes assessed on the current homestead
for the tax year prior to which the claimant resides in the current homestead.�
However, if the new homestead is �new construction,� which is defined as any
homestead that first became taxable during the year in which the eligible
claimant initially takes residence in the homestead or the year prior thereto,
the base year is to be the first full tax year following the construction�s
completion.