Revises definition of income for homestead property tax reimbursement and Stay NJ property tax benefit programs; modifies elements of Stay NJ property tax benefit program.

S4441

SENATE, No. 4441

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 11, 2026

Sponsored by:

Senator� TROY SINGLETON

District 7 (Burlington)

SYNOPSIS

���� Revises definition of income for homestead property
tax reimbursement and Stay NJ property tax benefit programs; modifies elements
of Stay NJ property tax benefit program.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the homestead property tax reimbursement and
Stay NJ property tax benefit programs, and amending P.L.1997, c.348 and
P.L.2023, c.75.

����
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 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.� 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 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, eligibility beginning in a second full tax
year after such a move shall not apply to tax years commencing prior to January
1, 2010.

���� "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.

���� "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
exemption,
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:

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

���� Is built on a permanent
chassis;

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

���� 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:

���� The construction and
maintenance of streets;

���� Lighting of streets and other
common areas;

���� Garbage removal;

���� Snow removal; and

���� 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.

���� "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.

���� "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)

���� 2.� Section 2 of P.L.2023,
c.75 (C.54:4-8.75b) is amended to read as follows:

���� 2.� As used in this act:

���� "ANCHOR" means the
Affordable New Jersey Communities for Homeowners and Renters Property Tax
Relief Program.

���� "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.

���� "Director" means the
Director of the Division of Taxation in the Department of the Treasury.

���� "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 State resident who is 65 or more years of age on or before December 31,
2024 or who is 65 or more years of age on or before December 31 of any
subsequent benefit year, who is the owner for at least one full tax year of a
homestead in this State on or after December 31, 2023 and any subsequent
benefit year, and who has income for the prior tax year that is less than
[
$500,000
]

$250,000
.

���� "Homestead" means:

���� a.���� 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;

���� b.��� 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; or

���� c.���� 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; or a mutual housing
corporation.

���� "Homestead property tax
reimbursement" means the property tax benefit provided pursuant to
P.L.1997, c.348 (C.54:4-8.67 et seq.).

���� "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
exemption,
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 overs 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
]
.

���� "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.

���� "Principal
residence" means a homestead actually and continually occupied by an
eligible claimant as the eligible claimant's permanent residence, including a
homestead on which an eligible claimant made one or more payments in lieu of
taxes to the municipality in which the homestead is located, as distinguished
from a vacation home, property owned and rented or offered for rent by the
eligible claimant, and other secondary real property holdings.

���� "Property tax" means
the general property tax due and payable by the owner of a homestead, based on
an assessment made by the municipality upon real property on an ad valorem
basis on land and improvements, and shall include payments in lieu of taxes.

���� "State resident" or
"resident" means an individual:

���� a.���� who is domiciled in
this State, unless the individual maintains no permanent place of abode in this
State, maintains a permanent place of abode elsewhere, and spends in the
aggregate no more than 30 days of the tax year in this State; or

���� b.��� who is not domiciled in
this State but maintains a permanent place of abode in this State and spends in
the aggregate more than 183 days of the tax year in this State, unless the
individual is in the Armed Forces of the United States.

���� "Stay NJ property tax
credit" means a property tax credit applied to an eligible claimant's
property tax bill in accordance with the provisions of the "Stay NJ
Act," P.L.2023, c.75 (C.54:4-8.75a et al.).

���� "Task force" means
the Stay NJ Task Force established pursuant to section 18 of P.L.2023, c.75
(C.54:4-8.75o).

���� "Tax year" or
"taxable year" means the prior calendar year, January 1 through
December 31, in which a homestead is assessed for property taxation and the
property tax is levied thereon, and paid.

���� "Tax year quarter"
means a three-month period of a tax year consisting of January 1 through March
31, April 1 through June 30, July 1 through September 30, and October 1 through
December 31.

(cf:� P.L.2024, c.88, s.1)

���� 3.� Section 3 of P.L.2023,
c.75 (C.54:4-8.75c) is amended to read as follows:

���� 3. a. (1) There is established
the Stay NJ property tax credit program.� The director shall administer the
Stay NJ property tax credit that shall provide to an eligible claimant a
property tax credit in the amount of 50 percent of the property tax billed to
the eligible claimant's principal residence in the prior tax year, except that
the amount of the credit, together with the combined amount of the ANCHOR
rebate and the homestead property tax reimbursement received by the eligible
claimant for the tax year, shall not exceed the maximum amount allowable for
the tax year pursuant to subsection c. of this section.

���� (2) Nothing in this section
shall be deemed to limit the amount of the homestead property tax reimbursement
or ANCHOR rebate that shall be paid to an eligible claimant for any tax year in
which the combined value of the homestead property tax reimbursement and ANCHOR
rebate exceeds the amount of the maximum allowable Stay NJ property tax credit,
as determined pursuant to subsection c. of this section.

���� (3) A Stay NJ property tax
credit for an eligible claimant who is a tenant shareholder in a cooperative,
mutual housing organization, or continuing care retirement community shall be
based on the eligible claimant's proportionate share of the property taxes
assessed against that real property that are attributable to the eligible
claimant's unit.� Property tax credits shall be allowed pursuant to this
section in relation to the property taxes billed or allocable to an eligible
claimant who has more than one homestead in a tax year, but the aggregate
amount of the property taxes or property tax credits claimed shall not exceed
the total proportionate amounts of property taxes assessed and levied against
or allocable to each homestead for the proportion of the tax year quarter to
which the taxpayer occupies it as the taxpayer's principle residence.

���� b.��� The amount of the Stay
NJ property tax credit shall be calculated for each eligible claimant by the
director and shall be paid in accordance with the provisions of section 5 of
P.L.2023, c.75 (C.54:4-8.75e).

���� c.����
(1)
The maximum
amount to be credited to an eligible claimant shall be $6,500 for tax year 2026

[
and
for
]

.�
Beginning in tax year 2027, the maximum amount credited to an eligible claimant
shall be as follows:

����
(a) for an eligible
claimant with income not over $175,000, the maximum benefit shall be $6,500;

����
(b) for an eligible
claimant with income over $175,000 but not over $225,000, the maximum benefit shall
be $5,000; and

����
(c) for an eligible
claimant with income over $225,000 but not over $250,000, the maximum benefit
shall be $4,500.

����
(2) In
each tax year
[
thereafter
]

after tax
year 2027
, the maximum amount to be credited to an eligible claimant shall
be increased based on the annual percentage increase in the average residential
property tax bill as shall be computed by the Director of the Division of Local
Government Services in the Department of Community Affairs.

���� d.��� Except as otherwise
provided in subsection a. of section 5 of P.L.2023, c.75 (C.54:4-8.75e), an
eligible claimant shall be entitled to a Stay NJ property tax credit annually,
on proper claim being made therefor to the director.� Notwithstanding any provision
of P.L.2023, c.75 (C.54:4-8.75a et al.) to the contrary, the amount of property
taxes used to determine the amount of the Stay NJ property tax credit shall not
be reduced by the amount of the deductions taken by an eligible claimant
pursuant to P.L.1963, c.171 (C.54:4-8.10 to 54:4-8.23) and P.L.1964, c.255
(C.54:4-8.40 to 54:4-8.45 et al.).� The surviving spouse of a deceased resident
of this State who during his or her life received a Stay NJ property tax credit
shall be entitled, so long as the surviving spouse does not remarry, remains a
resident in the same homestead with respect to which the Stay NJ property tax
credit was granted, and is an eligible claimant, to the same Stay NJ property
tax credit, upon the same conditions, with respect to the same homestead.

(cf: P.L.2024, c.88, s.2)

���� 4. �This act shall take effect
immediately and shall apply to tax years beginning on and after January 1,
2027.

STATEMENT

���� This bill amends current law
to make certain modifications to the homestead property tax reimbursement
program, also known as the Senior Freeze Program, and the Stay NJ property tax
benefit program (Stay NJ).�

���� Current law requires an
eligible claimant�s income to be below certain thresholds to qualify for the Senior
Freeze and Stay NJ programs.� The bill provides that for the purpose of
determining eligibility for these programs, income will be determined based on
an eligible claimant�s gross income under the �New Jersey Gross Income Tax
Act,� N.J.S.54A:1-1 et seq. before the application of any authorized
exemptions, exclusions, or deductions.� Under current law, an eligible
claimant�s income is determined using the person�s gross income, before the
application of any deductions or exclusions, plus income from the following
sources of excluded income: (1) all payments received under the federal Social
Security Act; (2) pension and annuity income; (3) interest income; (4) other
retirement income; and (5) distributions from a Roth Individual Retirement
Account.

���� Additionally, the bill reduces
the income eligibility limit from the Stay NJ program from $500,000 to
$250,000. The bill also establishes a tiered benefit structure for the Stay NJ
program.� The bill provides that beginning in tax year 2027, the maximum
allowable Stay NJ benefit would be calculated as follows: (1) for eligible
claimants with gross income not over $175,000 the maximum Stay NJ benefit would
be $6,500; (2) for eligible claimants with gross income over $175,000 but not
over $225,000 the maximum Stay NJ benefit would be $5,000; and (3) for eligible
claimants with gross income over $225,000 but over $250,000 the maximum Stay NJ
benefit would be $4,500.� Each year thereafter, these amounts would increase
annually based on the percentage increase in the average residential property
tax bill.� Under current law, eligible claimants with income of up to $500,000
may receive a maximum Stay NJ benefit of $6,500, subject to annual increases
based on the percentage increase in the average residential property tax bill.