ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, Nos. 1327 and 2873

STATE OF NEW JERSEY

DATED:  JUNE 2, 2022

      The Assembly Housing Committee reports favorably an Assembly Committee Substitute for Assembly Bill Nos. 1327 and 2873.

      This committee substitute 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 committee substitute 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.