Proposes constitutional amendment to limit assessment of homestead real property, and allow exemption on up to $50,000 of home's value.

SCR74

SENATE CONCURRENT RESOLUTION No. 74

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JANUARY 28, 2026

Sponsored by:

Senator� JON M. BRAMNICK

District 21 (Middlesex, Morris, Somerset and Union)

SYNOPSIS

���� Proposes constitutional amendment to limit assessment
of homestead real property, and allow exemption on up to $50,000 of home�s
value.

CURRENT VERSION OF TEXT

���� As introduced.

��

A
Concurrent Resolution

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

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

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

PROPOSED
AMENDMENT

����
a.����
[AW1]

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

���� 1.��� (a) Property shall be
assessed for taxation under general laws and by uniform rules. All real
property assessed and taxed locally or by the State for allotment and payment
to taxing districts shall be assessed according to the same standard of value,
which
shall be true value, being the value at current market prices for an
arms-length transaction,
except as otherwise permitted herein, and such
real property shall be taxed at the general tax rate of the taxing district in
which the property is situated, for the use of such taxing district.

���� (b)�� The Legislature shall
enact laws to provide that the value of land, not less than 5 acres in area,
which is determined by the assessing officer of the taxing jurisdiction to be
actively devoted to agricultural or horticultural use and to have been so devoted
for at least the 2 successive years immediately preceding the tax year in
issue, shall, for local tax purposes, on application of the owner, be that
value which such land has for agricultural or horticultural use.

���� Any such laws shall provide
that when land which has been valued in this manner for local tax purposes is
applied to a use other than for agriculture or horticulture it shall be subject
to additional taxes in an amount equal to the difference, if any, between the
taxes paid or payable on the basis of the valuation and the assessment
authorized hereunder and the taxes that would have been paid or payable had the
land been valued and assessed as otherwise provided in this Constitution, in
the current year and in such of the tax years immediately preceding, not in
excess of 2 such years in which the land was valued as herein authorized.

���� Such laws shall also provide
for the equalization of assessments of land valued in accordance with the
provisions hereof and for the assessment and collection of any additional taxes
levied thereupon and shall include such other provisions as shall be necessary
to carry out the provisions of this amendment.

����
(c)�� The Legislature shall
enact laws providing a homestead property assessment limitation.� Any law so
enacted shall require that homestead real property, used as the principal
residence of the owners thereof, shall be assessed at its true value as of the
January 1 next following the approval by the voters of this proposed amendment,
and shall be reassessed annually on January 1.� Any law so enacted shall also
limit any increases resulting from such reassessment to the lower of either
three percent of the assessed value of the property for the prior year or the
percentage change in the Consumer Price Index for All Urban Consumers, or
successor reports for the preceding calendar year as reported by the United
States Department of Labor, Bureau of Labor Statistics, or its successor
agency.

����
Any law enacted under this
subparagraph also shall require that homestead real property shall be assessed
at true value as of January 1 of the year following a change of ownership, as
defined by the Legislature.� Thereafter, any annual increase in the assessed
value of the property shall be subject to the limitations required by this
subparagraph.� The limitations established by this subparagraph shall not apply
to an added assessment that results from an improvement.

(cf: Article VIII, Section I,
paragraph 1 amended effective December 5, 1963)

���� b.���
[AW2]

Amend Article VIII, Section I,
paragraph 5 to read as follows:

���� 5.���
a.
� The
Legislature may adopt a homestead statute which entitles homeowners,
residential tenants and net lease residential tenants to a rebate or a credit
of a sum of money related to property taxes paid by or allocable to them at
such rates and subject to such limits as may be provided by law. Such rebates
or credits may include a differential rebate or credit to citizens and
residents who are of the age of 65 or more years, or less than 65 years of age
who are permanently and totally disabled according to the provisions of the
Federal Social Security Act, or are 55 years of age or more and the surviving
spouse of a deceased citizen or resident of this State who during his lifetime
received, or who, upon the adoption of this amendment and the enactment of
implementing legislation, would have been entitled to receive a rebate or
credit related to property taxes.

����
b.��� The Legislature shall
enact laws providing: (1) a full property tax exemption on the first $25,000 of
value assessed to a homestead property; and (2) an exemption from all
non-school district property taxes on the third $25,000 of value assessed to a
homestead property.�

(cf: Article VIII, Section I,
paragraph 5 amended effective December 2, 1976)

���� 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 LIMIT CERTAIN PROPERTY ASSESSMENTS AND REQUIRE CERTAIN
EXEMPTIONS

YES

���� Do you approve amending the
Constitution to limit the change in the value of a person�s primary home
every year for property tax payments, and to allow an exemption on up to
$50,000 of assessed value?

���� The value of a person�s home
affects their property tax bill.� The value of a person�s home could not
increase more than three percent of the value in the last year, or the
increase in the consumer price index for the last year, whichever is lower.

���� The first $25,000 of value
assessed on a person�s home would be property tax exempt.� The third $25,000
of value would be exempt from non-school district property taxes.

INTERPRETIVE
STATEMENT

NO

���� This amendment would require
the Legislature to limit annual increases in the value of an owner�s
principal residence, for the calculation of property tax payments.�� The
amendment would also require the Legislature to allow a principal residence
property tax exemption on up to $50,000 of assessed value.�

���� Homes would be assessed on
January 1 each year.� Any annual increase in a home's value would be limited
to three percent of the value in the last year or the increase in the
consumer price index, whichever is lower.

���� When a home changes
ownership, it would be valued as of January 1 of the next year.� Then, the
increase limits would again apply until the next time the home changes
ownership.

���� The first $25,000 of a
home�s value would be property tax exempt.� Value assessed between $50,000
and $75,000 would be exempt from non-school district property taxes.

STATEMENT

���� If approved by the voters of
the State, this proposed constitutional amendment would require the Legislature
to place a limit on annual assessment increases for homestead real property.
Homestead real property, which is the principal residence of the owners of the
property, would be assessed at true value as of the January 1 next following
the approval by the voters of this proposed amendment, and would then be
reassessed annually on each succeeding January 1.� Any annual increase in the
property's assessment would be limited to 3% or the Consumer Price Index rate,
whichever is lower.� When a homestead real property changes ownership, the
property would be assessed at true value as of January 1 of the year following
the change of ownership.� Thereafter, any limitations in the annual increase in
the assessed value of the property would once again apply until the next time
the property changes ownership.� The limitations on assessment increases
established by this amendment would not apply to an added assessment that
results from an improvement.

���� Additionally, this proposed
constitutional amendment would require the Legislature to provide a homestead
property tax exemption on up to $50,000 of assessed value.� Specifically, this
exemption would consist of (1) a full property tax exemption on the first
$25,000 of value assessed to a homestead property, and (2) an exemption from
all non-school district property taxes on the third $25,000 of value assessed
to a homestead property, meaning value assessed between $50,000 and $75,000.

[AW1]
Not sure why this
was dropped in producing the REI??

[AW2]
Not sure why this
was dropped in producing the REI??