ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1327

with committee amendments

STATE OF NEW JERSEY

DATED:  MARCH 17, 2022

      The Assembly State and Local Government Committee reports favorably and with committee amendments Assembly Bill No. 1327.

      As amended, this bill would revise criteria to establish the base year for the homestead property tax reimbursement.  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 must wait an additional tax year in order to be deemed “eligible” for the homestead property tax reimbursement.

      This bill would allow the claimant to retain eligibility following a move to another New Jersey homestead.  Thus, such a claimant would be able to qualify as an eligible claimant immediately following such a move and would not be required to wait an additional tax year in order to claim a reimbursement.  In this case, the homestead reimbursement payment would 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 would be the first full tax year following the construction’s completion. 

      This bill was pre-filed for introduction in the 2022-2023 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amendments remove a provision from the bill which would have allowed a current eligible claimant who moves to a new homestead to retain the claimant’s initial base year from the claimant’s former homestead.  The amendments instead allow the claimant to retain eligibility based on the property taxes assessed on the current homestead for the tax year prior to which the claimant resides in the homestead.  In addition, the amendments modify the definition of “new construction” and make other technical changes to the bill.