A1246

An Act extending eligibility for certain property tax benefits to veterans, 100 percent service-disabled veterans, and senior citizens and persons with disabilities who pay payments in lieu of property taxes, and amending various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1948, c.259 (C.54:4-3.30) is amended to read as follows:

1. a. The dwelling house and the lot or curtilage whereon the same is erected, of any citizen and resident of this State, now or hereafter honorably discharged or released under honorable circumstances, from active service in any branch of the Armed Forces of the United States, who has been or shall be declared by the United States Department of Veterans' Affairs or its successor to have a service-connected disability from paraplegia, sarcoidosis, osteochondritis resulting in permanent loss of the use of both legs, or permanent paralysis of both legs and lower parts of the body, or from hemiplegia and has permanent paralysis of one leg and one arm or either side of the body, resulting from injury to the spinal cord, skeletal structure, or brain or from disease of the spinal cord not resulting from any form of syphilis; or from total blindness; or from amputation of both arms or both legs, or both hands or both feet, or the combination of a hand and a foot; or from other service-connected disability declared by the United States Veterans Administration or its successor to be a total or 100% permanent disability, and not so evaluated solely because of hospitalization or surgery and recuperation, sustained through enemy action, or accident, or resulting from disease contracted while in such active service, shall be exempt from taxation, or from the payment of payments in lieu of property taxes required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), on proper claim made therefor, and such exemption shall be in addition to any other exemption of such person's real and personal property which now is or hereafter shall be prescribed or allowed by the Constitution or by law but no taxpayer shall be allowed more than one exemption under this act.

b. (1) The surviving spouse of any such citizen and resident of this State, who at the time of death was entitled to the exemption provided under this act, shall be entitled, on proper claim made therefor, to the same exemption as the deceased had, during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the said dwelling house or any other dwelling house thereafter acquired.

(2) The surviving spouse of any citizen and resident of this State who was honorably discharged and, after the citizen and resident's death, is declared to have suffered a service-connected disability as provided in subsection a. of this section, shall be entitled, on proper claim made therefor, to the same exemption the deceased would have become eligible for. The exemption shall continue during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the dwelling house or any other dwelling house thereafter acquired.

c. The surviving spouse of any citizen and resident of this State, who died in active service in any branch of the Armed Forces of the United States, shall be entitled, on proper claim made therefor, to an exemption from taxation, or from the payment of payments in lieu of property taxes required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), on the dwelling house and lot or curtilage whereon the same is erected, during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the said dwelling or any other dwelling house thereafter acquired.

d. The surviving spouse of any citizen and resident of this State who died prior to January 10, 1972, that being the effective date of P.L.1971, c.398, and whose circumstances were such that, had said law become effective during the deceased's lifetime, the deceased would have become eligible for the exemption granted under this section as amended by said law, shall be entitled, on proper claim made therefor, to the same exemption as the deceased would have become eligible for upon the dwelling house and lot or curtilage occupied by the deceased at the time of death, during the surviving spouse's widowhood or widowerhood, as the case may be, and while a resident of this State, for the time that the surviving spouse is the legal owner thereof and actually occupies the said dwelling house on the premises to be exempted.

e. Nothing in this act shall be intended to include paraplegia or hemiplegia resulting from locomotor ataxia or other forms of syphilis of the central nervous system, or from chronic alcoholism, or to include other forms of disease resulting from the veteran's own misconduct which may produce signs and symptoms similar to those resulting from paraplegia, osteochondritis, or hemiplegia.

(cf: P.L.2019, c.413, s.1)

2. Section 2 of P.L.2021, c.175 (C.54:4-3.30a) is amended to read as follows:

2. For the purposes of P.L.1948, c.259 (C.54:4-3.30 et seq.) a tenant shareholder in a cooperative or mutual housing corporation shall be entitled to an exemption from taxation under that act only to the extent of his proportionate share of the taxes, or payments in lieu of property taxes required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), assessed against the real property of the corporation or any other entity holding title to that real property. The Director of the Division of Taxation in the Department of the Treasury shall promulgate regulations, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to: require that the application for the exemption shall include the name and address of the location of the property and the amount of real property taxes attributed to the cooperative unit or mutual housing residential unit; and ensure that the disabled veteran or surviving spouse, as the case may be, is the sole beneficiary of the disabled veterans' property tax exemption provided by P.L.1948, c.259 (C.54:4-3.30 et seq.).

(cf: P.L.2021, c.175, s.2)

3. Section 2 of P.L.1948, c.259 (C.54:4-3.31) is amended to read as follows:

2. [All] Under P.L.1948, c.259 (C.54:4-3.30 et seq.), all exemptions from taxation [under P.L.1948, c.259 (C.54:4-3.30 et seq.)], or exemptions from the payment of a payment in lieu of property taxes required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.) shall be allowed by the assessor upon the filing with him of a claim in writing under oath, made by or on behalf of the person claiming the same, showing the right to the exemption, briefly describing the property for which exemption is claimed and having annexed thereto a certificate of the claimant's honorable discharge or release under honorable circumstances, from active service in any branch of the Armed Forces of the United States and a certificate from the United States Department of Veterans' Affairs or its successor, certifying to a service-connected disability of such claimant of the character described in section 1 of P.L.1948, c.259 (C.54:4-3.30). In the case of a claim by a surviving spouse of such veteran, the claimant shall establish in writing under oath that the claimant is the owner of the legal title to the premises on which exemption is claimed; that the claimant occupies the dwelling house on said premises as the claimant's legal residence in this State; that the veteran shall have been declared, either during the veteran's lifetime or after the veteran's death, by the United States Department of Veterans' Affairs to have or to have had a service-connected disability of a character described in this act, or, in the case of a claim for an exemption under subsection c. of section 1 of P.L.1948, c.259 (C.54:4-3.30), that the veteran shall have been declared to have died in active service; that the veteran was entitled to an exemption provided for in this act, except for an exemption under paragraph (2) of subsection b. and subsection c. of section 1 hereof, at the time of death; and that the claimant is a resident of this State and has not remarried. Such exemptions shall be allowed and prorated by the assessor for the remainder of any taxable year from the date the claimant shall have acquired title to the real property intended to be exempt by this act. Where a portion of a multiple-family building or structure occupied by the claimant is the subject of such exemption, the assessor shall aggregate the assessment on the lot or curtilage and building or structure and allow an exemption of that percentage of the aggregate assessment as the value of the portion of the building or structure occupied by the claimant bears to the value of the entire building or structure.

(cf: P.L.2019, c.413, s.2)

4. Section 3 of P.L.1948, c.259 (C.54:4-3.32) is amended to read as follows:

3. The governing body of each municipality, by appropriate resolution, may return all property taxes, or payments in lieu of property taxes required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), that were collected on property which would have been exempt had proper claim in writing been made therefor in the manner provided by P.L.1948, c.259 (C.54:4-3.30 et seq.). The governing body of each municipality, by appropriate resolution, may also return to the veteran or the veteran's surviving spouse all property tax payments, or payments in lieu of property taxes required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), that were made since the time of the veteran's actual disability or since the time of the veteran's death. No refunds shall be made under this section for any year or portion thereof prior to the effective date of P.L.1948, c.259 (C.54:4-3.30 et seq.).

(cf: P.L.2007, c.317, s.3)

5. Section 2 of P.L.1963, c.171 (C.54:4-8.11) is amended to read as follows:

2. Every person a citizen and resident of this State now or hereafter honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States and a surviving spouse as defined herein, during her widowhood or his widowerhood, and while a resident of this State, shall be entitled, annually, on proper claim being made therefor, to a deduction from the amount of any tax bill for taxes on real or personal property or both, or from the amount of any payment in lieu of property taxes required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), in the sum of $100 in tax year 2000, $150 in tax year 2001, $200 in tax year 2002, and $250 in each subsequent tax year, or if the amount of any such tax or payment in lieu of property taxes required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.) shall be less than $100 in tax year 2000, $150 in tax year 2001, $200 in tax year 2002, and $250 in each subsequent tax year, to a cancellation thereof. A person otherwise eligible for the veterans' deduction who is a resident of a continuing care retirement community shall receive the amount of the deduction to the extent of the share of the taxes assessed against the real property of the continuing care retirement community that is attributable to the unit that the resident occupies. The continuing care retirement community shall provide that amount as a payment or credit to the resident for the amount of the property tax credit received by the continuing care retirement community. That payment or credit shall be made to the resident no later than 30 days after the continuing care retirement community receives the property tax bill on which the credit appears. In the case of a continuing care retirement community constructed by an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), a person otherwise eligible for the veterans' deduction who is a resident of such a continuing care retirement community shall receive the amount of the deduction to the extent of the share of the payment in lieu of property taxes that is attributable to the unit that the resident occupies.

(cf: P.L.2019, c.413, s.4)

6. Section 3 of P.L.1963, c.171 (C.54:4-8.12) is amended to read as follows:

3. No veteran's deduction, from taxes assessed against real and personal property, or from payments in lieu of property taxes required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), as provided herein, shall be allowed except upon written application therefor, which application shall be on a form prescribed by the Director of the Division of Taxation, in the Department of the Treasury, and provided for the use of claimants hereunder by the governing body of the municipality constituting the taxing district in which such claim is to be filed and the application has been approved as provided in this act. An assessor shall not require the filing of an application for a veteran's deduction under this act of any person who has filed, or shall file, a claim for an exemption from taxation under chapter 184 of the laws of 1951, on or before December 31, 1963, but shall approve a veteran's deduction for such person, if it appears from such claim for exemption that such person meets all the other prerequisites required by law for the approval of a claim for a veteran's deduction. Each assessor may at any time inquire into the right of a claimant to the continuance of a veteran's deduction hereunder and for that purpose he may require the filing of a new application or the submission of such proof as he shall deem necessary to determine the right of the claimant to continuance of such deduction. No application for a veteran's deduction based upon service in the Armed Forces of the United States shall be allowed unless there is annexed thereto a copy, which may be photostatic, of claimant's certificate of honorable discharge or of his certificate of release under honorable circumstances from active service in a branch of the Armed Forces of the United States. In the case of an application by a surviving spouse said application shall not be allowed unless it clearly establishes that:

(a) Claimant's spouse died while on active duty in a branch of the Armed Forces of the United States, having had active service in a branch of the Armed Forces of the United States, or in the case of a surviving spouse of a veteran, claimant shall establish that the veteran was honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States, (b) claimant's spouse was a citizen and resident of this State at the time of death, (c) claimant was the spouse of the veteran at the time of the veteran's death, and (d) claimant is a resident of this State and has not remarried.

(cf: P.L.2019, c.413, s.5)

7. Section 4 of P.L.1963, c.171 (C.54:4-8.13) is amended to read as follows:

4. An application for a veteran's deduction hereunder may be filed with the assessor of the taxing district at any time on or before December 31 of the pretax year. If so filed and approved by the assessor, he shall allow a veteran's deduction from taxes on the real or personal property, or both, assessed to the claimant, or from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), in the amount of the claim approved by him and shall indicate, upon the assessment list and duplicates, the approval thereof in such manner as shall be prescribed by rules of the Director of the Division of Taxation, together with the proportionate share of such property deemed to be owned by the claimant for the purposes of this act, if the claimant is not the sole owner thereof. The application, if not filed with the assessor within the time aforementioned, may be filed with the collector during the tax year and upon approval by the collector of such application he shall determine the amount of the reduction in tax or in payment in lieu of property taxes to which the claimant is entitled and shall allow said amount as an offset against the tax or the payment in lieu of property taxes then remaining unpaid. If the amount allowable as an offset shall exceed the amount of the tax or the payment in lieu of property taxes then unpaid for that tax year, or if the application for a veteran's deduction is not filed with the collector until after all taxes or payments in lieu of property taxes for the tax year have been fully paid, the claimant may make application to the governing body of the municipality constituting the taxing district for the refund of any tax or payment in lieu of property taxes overpaid, but without interest, and the governing body may, in its discretion, direct the return of any tax or payment in lieu of property taxes deemed by it to have been overpaid by reason of claimant's failure to make timely application for a veteran's deduction; provided, however, that no application for a veteran's deduction for any previous tax year shall be allowed by any assessor, collector or governing body. Where an application for a veteran's deduction is filed with and allowed by a collector he shall promptly transmit such application and all exhibits attached thereto, or a photostatic copy thereof, to the assessor of the taxing district. Upon receipt thereof the assessor shall review the application and if approved by him it shall have the same force as if originally filed with him.

(cf: P.L.1985, c.515, s.9)

8. Section 8 of P.L.1963, c.171 (C.54:4-8.17) is amended to read as follows:

8. No person shall be allowed a veteran's deduction from the tax assessed against real and personal property, or from payments in lieu of property taxes made by the person as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), of more than $100 in the aggregate in tax year 2000, $150 in the aggregate in tax year 2001, $200 in the aggregate in tax year 2002 and $250 in the aggregate in any subsequent tax year, but a veteran's deduction may be claimed in any taxing district in which the claimant has taxable property and may be apportioned, at the claimant's option, between two or more taxing districts; provided such claims shall not exceed $100 in the aggregate in tax year 2000, $150 in the aggregate in tax year 2001, $200 in the aggregate in tax year 2002 and $250 in the aggregate in any subsequent tax year. If a surviving spouse, as herein defined, shall have been honorably discharged or released under honorable circumstances from active service in any branch of the Armed Forces of the United States, the surviving spouse shall be entitled to a veteran's deduction for each status. The veteran's deductions herein provided shall be in addition to any exemptions now or hereafter provided by any other statute for disabled veterans or surviving spouses, as herein defined, and in addition to any deductions provided under P.L.1963, c.172 (C.54:4-8.40 et seq.) for senior citizens and the permanently and totally disabled, and certain surviving spouses thereof, to which the claimant is entitled. In addition, a claimant may receive any homestead rebate or credit provided by law.

(cf: P.L.2019, c.413, s.6)

9. Section 2 of P.L.1963, c.172 (C.54:4-8.41) is amended to read as follows:

2. Every person, a citizen and resident of this State of the age of 65 or more years, or less than 65 years of age who is permanently and totally disabled, having an annual income not in excess of the limitations provided in this section and residing in a dwelling house owned by him which is a constituent part of his 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 a tenant shareholder in a cooperative or mutual housing corporation, shall be entitled, annually, on proper claim being made therefor, to a deduction against the tax or taxes, or from payments in lieu of property taxes made by the person as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), assessed against such real property, to an amount not exceeding the amount of [said] that property tax or payment in lieu of property taxes, the proportionate share of [said] that property taxes or payment in lieu of property taxes attributable to his unit, or the sum provided in this section, whichever is the lesser, but no such deduction from taxes shall be in addition to any other deduction or exemption from property taxes or payment in lieu of property taxes to which said person may be entitled, except a veteran's deduction provided under P.L.1963, c.171 (C.54:4-8.10 et seq.). A citizen and resident granted a deduction pursuant to this section may receive in addition any homestead rebate or credit provided by law.

For the purposes of this section, the annual income limitation shall be: $5,000.00 for any year prior to 1981; $8,000.00 for the year 1981; $9,000.00 for the year 1982; and $10,000.00 for year 1983 and each year thereafter.

The sum deducted pursuant to this section shall not exceed: in any year prior to 1981, $160.00; in the year 1981, $200.00; in the year 1982, $225.00; and in the year 1983 and in each year thereafter, $250.00.

For the purposes of this act:

a. The income of a married person shall be deemed to include an amount equal to the income of the spouse during the applicable income year, except for such portion of that year as the two were living apart in a state of separation, whether under judicial decree or otherwise.

b. The requirement of ownership shall be satisfied by the holding of a beneficial interest in the dwelling house where legal title thereto is held by another who retains a security interest in the dwelling house.

(cf: P.L.1989, c.252, s.2)

10. Section 4 of P.L.1976, c.129 (C.54:4-8.41a) is amended to read as follows:

4. The surviving spouse of a deceased citizen and resident of this State who during his or her life received a real property tax deduction, or a deduction from payments in lieu of property taxes made by the person as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), pursuant to this act shall be entitled, so long as he or she shall remain unmarried and a resident in the same dwelling house with respect to which said deduction was granted, to the same deduction, upon the same conditions, with respect to the same real property, 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 at the time of the death of said citizen and resident.

(cf: P.L.1976, c.129, s.4)

11. Section 4 of P.L.1963, c. 172 (C.54:4-8.43) is amended to read as follows:

4. An application for a deduction hereunder may be filed with the assessor of the taxing district on or before December 31 of the pretax year. If an application is approved by the assessor, he shall allow a deduction from the taxes assessed against the real property assessed to the claimant as described therein or a deduction from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), and shall indicate upon the assessment list and duplicates the approval thereof in such manner as shall be prescribed by rules of the Director of the Division of Taxation together with the proportionate share of such property deemed to be owned by the claimant for the purposes of this act if he is not the sole owner thereof.

Upon approval of the application for a tax deduction or a deduction from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), the tax collector shall note in his records the existence of a contingent liability for taxes or payments in lieu of property taxes in the amount of the deduction in the event the deduction is subsequently disallowed on the basis of the taxpayer's income, the transfer of title to the property to a person not entitled to such deduction, or on the basis of the failure to meet any other prerequisites required by this act for a tax deduction, or a deduction from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), which contingent liability shall be reported on any tax search made on the property for which the deduction was approved.

The application, if not filed with the assessor within the time aforementioned, may be filed with the collector during the tax year and upon approval by the collector of such application he shall determine the amount of the reduction in tax or in payment in lieu of property taxes to which the claimant is entitled and shall allow said amount as an offset against the tax, or payment in lieu of property taxes, then remaining unpaid. If the amount allowable as an offset shall exceed the amount of the tax, or payment in lieu of property taxes, then unpaid for that tax year, or if the application for a tax deduction, or a deduction from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), is not filed with the collector until after all taxes, or payments in lieu of property taxes, for the tax year have been fully paid, the claimant may make application to the governing body of the municipality constituting the taxing district for the refund of any tax overpaid, but without interest, and the governing body may, in its discretion, direct the return of any tax, or payment in lieu of property taxes, deemed by it to have been overpaid by reason of claimant's failure to make timely application for a tax deduction, or a deduction from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.); provided, however, that no application for a tax deduction, or a deduction from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law, P.L.1991, c.431 (C.40A:20-1 et al.), for any previous tax year shall be allowed by any assessor, collector or governing body. Where an application for a tax deduction, or a deduction from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), is filed with and allowed by a collector he shall promptly transmit such application and all exhibits attached thereto, or a photostatic copy thereof, to the assessor of the taxing district. Upon receipt thereof the assessor shall review the application and if approved by him it shall have the same force as if originally filed with him.

(cf: P.L.1976, c.129, s.6)

12. Section 5 of P.L.1964, c.255 (C.54:4-8.44a) is amended to read as follows:

5. Every person who is allowed a deduction shall, except as hereinafter provided, be required to file with the collector of the taxing district on or before March 1 of the post-tax year a statement under oath of his income for the tax year and his anticipated income for the ensuing tax year as well as any other information deemed necessary to establish his right to a tax deduction, or a deduction from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), for such ensuing tax year. The collector may grant a reasonable extension of time for filing the statement required by this section, which extension shall terminate no later than May 1 of the post-tax year, in any event where it shall appear to the satisfaction of the collector, verified by a physician's certificate, that the failure to file by March 1 was due to illness or a medical problem which prevented timely filing of the statement. In any case where such an extension is granted by the collector, the required statement shall be filed on or before May 1 of the post-tax year.

Such statement shall be on a form prescribed by the Director of the Division of Taxation, in the Department of the Treasury and provided for the use of persons required to make such statement by the governing body of the municipality constituting the taxing district in which such statement is required to be filed and shall be mailed by the collector on or before February 1 of the post-tax year to each person within the taxing district who was allowed a deduction in the preceding year. Each collector may require the submission of such proof as he shall deem necessary to verify any such statement. Upon the failure of any such person to file the statement within time herein provided or to submit such proof as the collector deems necessary to verify a statement that has been filed, or if it is determined that the income of any such person exceeded the applicable income limitation for said tax year, his tax deduction for said tax year shall be disallowed. A notice of disallowance, on a form prescribed by the director, shall be mailed to that person by the collector on or before April 1 of the post-tax year or, where an extension of time for filing has been granted, no later than June 1, and his taxes, or payments in lieu of property taxes, to the extent represented by the amount of said deduction shall be payable on or before June 1 of the post-tax year or, where an extension of time for filing has been granted no later than 30 calendar days after the notice of disallowance was mailed, after which date if unpaid, said taxes shall be delinquent, constitute a lien on the property, and, in addition, the amount of said taxes shall be a personal debt of said person.

The amount of any lien and tax liability, or the amount of any lien and liability for payments in lieu of property taxes, shall be prorated by the tax collector upon the transfer of title based on the number of days during the tax year that entitlement to the tax deduction is established. The lien shall be considered satisfied by the tax collector upon payment of the prorated amount for that portion of the tax year for which entitlement to the tax deduction is not established.

(cf: P.L.1997, c.30, s.3)

13. Section 7 of P.L.1963, c.172 (C.54:4-8.46) is amended to read as follows:

7. Where title to property as to which a deduction is claimed is held by claimant and another or others, either as tenants in common or as joint tenants, claimant shall not be allowed a deduction in an amount in excess of his proportionate share of the taxes assessed against said property, or from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), which proportionate share, for the purposes of this act, shall be deemed to be equal to that of each of the other tenants, unless it is shown that the interests in question are not equal, in which event claimant's proportionate share shall be as shown. Nothing herein shall preclude more than one tenant, whether title be held in common or joint tenancy, from claiming a deduction from the taxes assessed against the property so held, , or from payments in lieu of property taxes made by the claimant as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), but no more than the equivalent of one full deduction in regard to such property shall be allowed in any year, and in any case in which the claimants cannot agree as to the apportionment thereof, such deduction shall be apportioned between or among them in proportion to their interest. Property held by husband and wife, as tenants by the entirety, shall be deemed wholly owned by each tenant, but no more than one deduction in regard to such property shall be allowed in any year. Right to claim a deduction hereunder shall extend to property the title to which is held by a partnership, to the extent of the claimant's interest as a partner therein, and by a guardian, trustee, committee, conservator or other fiduciary for any person who would otherwise be entitled to claim such deduction hereunder, but not to property the title to which is held by a corporation; except that a residential shareholder in a cooperative or mutual housing corporation shall be entitled to claim a deduction he is otherwise eligible to receive, to the extent of the proportionate share of the taxes assessed against the real property of the corporation, or any other entity holding title, attributable to his unit therein, or from payments in lieu of property taxes as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), attributable to the residential shareholder’s unit therein.

(cf: P.L.1989, c.252, s.4)

14. This act shall take effect immediately but shall remain inoperative until the approval by the voters of the State, at a general election, an amendment to the New Jersey Constitution authorizing the property tax benefits provided herein to veterans, seniors, and persons with disabilities who pay payments in lieu of property taxes instead of property taxes.

STATEMENT

This bill would extend eligibility for the property tax exemption provided to veterans who have suffered a 100 percent service-connected disability, the $250 veterans property tax deduction, and the $250 property tax deduction for senior citizens and persons with disabilities to those persons who pay payments in lieu of property taxes, as required pursuant to a contract between a municipality and an urban renewal entity pursuant to the “Long Term Tax Exemption Law,” P.L.1991, c.431 (C.40A:20-1 et al.), instead of property taxes, on their homes.