Proposes constitutional amendment eliminating cap on certain benefits to qualify for senior and disabled citizens' $250 property tax deduction.

ACR142

ASSEMBLY CONCURRENT RESOLUTION No. 142

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 4, 2026

Sponsored by:

Assemblywoman� DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Proposes constitutional amendment eliminating cap on
certain benefits to qualify for senior and disabled citizens' $250 property tax
deduction.

CURRENT VERSION OF TEXT

���� As introduced.

��

A
Concurrent Resolution

proposing to
amend Article VIII, Section I, paragraph 4 of the New Jersey Constitution.

����
Be It
Resolved
by the General Assembly of the State
of New Jersey (the Senate concurring):

���� 1.��� The following proposed
amendment to the Constitution of the State of New Jersey is hereby agreed to:

PROPOSED
AMENDMENT

���� Amend Article VIII, Section 1,
paragraph 4 to read as follows:

���� 4.��� The Legislature may,
from time to time, enact laws granting an annual deduction, from the amount of
any tax bill for taxes on the real property, and from taxes attributable to a
residential unit in a cooperative or mutual housing corporation, of any citizen
and resident of this State of the age of 65 or more years, or any citizen and
resident of this State less than 65 years of age who is permanently and totally
disabled according to the provisions of the Federal Social Security Act,
residing in a dwelling house owned by him which is a constituent part of such
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 tenant-shareholder in a cooperative or mutual housing corporation,
but no such deduction shall be in excess of $160.00 with respect to any year
prior to 1981, $200.00 per year in 1981, $225.00 per year in 1982, and $250.00
per year in 1983 and any year thereafter and such deduction shall be restricted
to owners having an income not in excess of $5,000.00 per year with respect to
any year prior to 1981, $8,000.00 per year in 1981, $9,000.00 per year in 1982,
and $10,000.00 per year in 1983 and any year thereafter, exclusive of benefits
under any one of the following:

���� a.���� The Federal Social
Security Act and all amendments and supplements thereto;

���� b.��� Any other program of the
federal government or pursuant to any other federal law which provides benefits
in whole or in part in lieu of benefits referred to in, or for persons excluded
from coverage under, a. hereof including but not limited to the Federal
Railroad Retirement Act and federal pension, disability and retirement
programs; or

���� c.���� Pension, disability or
retirement programs of any state or its political subdivisions, or agencies
thereof, for persons not covered under a. hereof
[
; provided, however, that the
total amount of benefits to be allowed exclusion by any owner under b. or c.
hereof shall not be in excess of the maximum amount of benefits payable to, and
allowable for exclusion by, an owner in similar circumstances under a. hereof
]
.

���� The surviving spouse of a
deceased citizen and resident of the State who during his or her life received
a deduction pursuant to this paragraph shall be entitled, so long as he or she
shall remain unmarried and a resident of the same dwelling house situated on
the same land with respect to which said deduction was granted, to the same
deduction, upon the same conditions, with respect to the same real property or
with respect to the same dwelling house which is situated on land owned by
another or others, or with respect to the same cooperative or mutual housing
corporation, notwithstanding that said surviving spouse is under the age of 65
and is not permanently and totally disabled, provided that said surviving
spouse is 55 years of age or older.

���� Any such deduction when so
granted by law shall be granted so that it will not be in addition to any other
deduction or exemption, except a deduction granted under authority of paragraph
3 of this section, to which the said citizen and resident may be entitled, but
said citizen and resident may receive in addition any homestead rebate or
credit provided by law.� The State shall annually reimburse each taxing
district in an amount equal to one-half of the tax loss to the district
resulting from the allowance of tax deductions pursuant to this paragraph.

(cf: Article VIII, Section I,
paragraph 4 amended effective December 8, 1988)

���� 2.��� When this proposed
amendment to the Constitution is finally agreed to pursuant to Article IX,
paragraph 1 of the Constitution, it shall be submitted to the people at the
next general election occurring more than three months after the final
agreement and shall be published at least once in at least one newspaper of
each county designated by the President of the Senate, the Speaker of the
General Assembly and the Secretary of State, not less than three months prior
to the general election.

���� 3.��� This proposed amendment
to the Constitution shall be submitted to the people at that election in the
following manner and form:

���� There shall be printed on each
official ballot to be used at the general election, the following:

���� a.���� In every municipality
in which voting machines are not used, a legend which shall immediately precede
the question as follows:

���� If you favor the proposition
printed below make a cross (X), plus (+), or check (
a
) in the square opposite the word "Yes." If you are
opposed thereto make a cross (X), plus (+) or check (
a
) in the square opposite the
word "No."

���� b.��� In
every municipality the following question:

CONSTITUTIONAL
AMENDMENT TO LIFT AN INCOME LIMIT FOR SENIOR AND DISABLED CITIZENS� PROPERTY
TAX DEDUCTION

YES

Do you approve
amending the Constitution to fully exclude certain benefits from the income
limit for the $250 property tax deduction?� The income limit excludes certain
retirement and disability benefits.� Currently, there is a limit on how much
of these benefits can be excluded.� This amendment would remove that limit.�
These benefits would be fully excluded from the income limit.

The deduction is
available to seniors and disabled persons who meet the income limit.

INTERPRETIVE
STATEMENT

NO

Seniors and
disabled persons may qualify for a $250 property tax deduction.� To do so,
they have to meet a $10,000 income limit.� Currently, a limited amount of
certain retirement and disability benefits are excluded from the income
limit.� They are excluded up to the amount of the highest social security
benefit.� This amendment would fully exclude those benefits from the income limit.�
This would allow more seniors and disabled persons to get the deduction.

STATEMENT

���� This constitutional amendment
would eliminate the cap on certain benefits for purposes of qualifying for the senior
and disabled citizens' $250 property tax deduction.

���� Currently, an eligible senior
or disabled person qualifies for this deduction if they have an income of
$10,000 or less.� Certain government pension, disability, and retirement benefits
provided in lieu of social security do not count as income for the purposes of
this $10,000 limit.� These benefits are only excluded from income up to the
maximum social security benefit amount.� Therefore, if these benefits exceed
the maximum social security benefit amount, then the excess amount counts
toward the $10,000 limit.

���� This amendment would lift that
cap and allow any amount of these benefits to be excluded from the $10,000
limit.� Accordingly, senior or disabled persons may receive benefits greater
than the maximum social security benefit amount and still be eligible for the
$250 property tax deduction, provided that they do not have other income
exceeding $10,000.