STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
Co-Sponsored by:
Assemblyman Karabinchak, Assemblywoman Swain, Assemblyman Tully and Assemblywoman Reynolds-Jackson
SYNOPSIS
Provides temporary gross income tax credit to first time home buyers and seniors.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing a temporary gross income tax credit to first time home buyers and seniors, supplementing chapter 4 of Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For taxable years beginning January 1, 2019, January 1, 2020, and January 1, 2021, a qualified taxpayer shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 25 percent of the property tax due and paid on the taxpayer's qualified residential property, up to $2,500.
b. The amount of the credit allowed shall be applied against the tax otherwise due under N.J.S.54A:1-1 et seq. in each taxable year after all other credits and payments allowed in the taxable year. If the credit allowed reduces the tax liability otherwise due to zero, any amount of the credit remaining shall be paid to the taxpayer as a refund of an overpayment of tax pursuant to N.J.S.54A:9-7, provided however, subsection (f) of that section, concerning the allowance of interest, shall not apply. The director shall determine the form and manner by which a qualified taxpayer shall apply for and be eligible to receive a refund of an overpayment pursuant to this section.
c. (1) If title to qualified residential property is held by more than one taxpayer as joint tenants or tenants in common, each taxpayer shall be allowed a credit pursuant to this section only in relation to the taxpayer's proportionate share of the property taxes due and paid for the qualified residential property. The proportionate share shall be equal to that of all other taxpayers who hold the title, but if the conveyance under which the title is held provides for unequal interests therein, a taxpayer's share of the property taxes shall be in proportion to the taxpayer's interest in the title.
(2) If title to a qualified residential property is held by taxpayers who own the qualified residential property as tenants by the entirety, or if those taxpayers are both residential shareholders of a cooperative or mutual housing corporation and occupy the same qualified residential property therein, and who elect to file separate income tax returns pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., those taxpayers shall each be entitled to one-half of the credit for which they may be jointly eligible pursuant to this section.
d. As used in this section:
"Qualified taxpayer" means a taxpayer:
(1) (a) who is a State resident and a natural person;
(b) who purchases a qualified residential property in taxable years 2019, 2020, or 2021;
(c) who has not previously owned qualified residential property; or
(2) (a) who is a State resident and a natural person;
(b) who is 65 years of age or older at the close of the taxable year.
"Qualified residential property" means a homestead, as defined in section 2 of P.L.1996, c.60 (C.54A:3A-16).
e. Notwithstanding any provision of P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director may adopt immediately upon filing with the Office of Administrative Law such regulations as the director deems necessary to implement the provisions of this act, which shall be effective for a period not to exceed 180 days following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with the requirements of P.L.1968, c.410.
2. This act shall take effect immediately.
STATEMENT
This bill provides temporary but immediate property tax relief to first time home buyers and senior citizens while a structural solution for relief from high property taxes is developed.
Pursuant to the bill, a gross income tax credit is provided to eligible taxpayers in the amount of 25 percent of the taxpayer's property taxes each year from 2019 through 2021, up to $2,500. If the value of the credit is more than what the taxpayer owes for income taxes, the amount of credit left over will be paid to the taxpayer.
To be eligible for the credit, a taxpayer must have bought the home in 2019, 2020, or 2021, or instead, be at least 65 years old.