New Jersey-2010-ACR101-Introduced

A Concurrent Resolution proposing to amend Article VIII, Section I, paragraph 4 of the New Jersey Constitution.

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

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

PROPOSED AMENDMENT

4. The Legislature may, from time to time, enact laws granting an annual deduction, from the amount of any tax bill for taxes on the real property, and from taxes attributable to a residential unit in a cooperative or mutual housing corporation, of any citizen and resident of this State of the age of 65 or more years, or any citizen and resident of this State less than 65 years of age who is permanently and totally disabled according to the provisions of the Federal Social Security Act, residing in a dwelling house owned by him which is a constituent part of such 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 tenant-shareholder in a cooperative or mutual housing corporation, but no such deduction shall be in excess of $160.00 with respect to any year prior to 1981, $200.00 per year in 1981, $225.00 per year in 1982, and $250.00 per year in 1983 and any year thereafter and such deduction shall be restricted to owners having an income not in excess of $5,000.00 per year with respect to any year prior to 1981, $8,000.00 per year in 1981, $9,000.00 per year in 1982, and $10,000.00 per year in 1983 and any year thereafter, exclusive of benefits under any one of the following:

a. The Federal Social Security Act and all amendments and supplements thereto;

b. Any other program of the federal government or pursuant to any other federal law which provides benefits in whole or in part in lieu of benefits referred to in, or for persons excluded from coverage under, a. hereof including but not limited to the Federal Railroad Retirement Act and federal pension, disability and retirement programs; or

c. Pension, disability or retirement programs of any state or its political subdivisions, or agencies thereof, for persons not covered under a. hereof; provided, however, that the total amount of benefits to be allowed exclusion by any owner under b. or c. hereof shall not be in excess of the maximum amount of benefits payable to, and allowable for exclusion by, an owner in similar circumstances under a. hereof.

The surviving spouse of a deceased citizen and resident of the State who during his or her life received a deduction pursuant to this paragraph shall be entitled, so long as he or she shall remain unmarried and a resident of the same dwelling house situated on the same land with respect to which said deduction was granted, to the same deduction, upon the same conditions, with respect to the same real property or with respect to the same dwelling house which is situated on land owned by another or others, or with respect to the same cooperative or mutual housing corporation, 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.

In addition to the deduction provided to certain senior and disabled residents in this paragraph, either the governing body of a municipality or the board of education of a non-regional school district, or both, may adopt an ordinance, or a resolution, as appropriate, providing for an additional property tax deduction from the municipal purposes or school district purposes portion of the property tax bill for senior and disabled residents who qualify for the deduction provided by this paragraph. The municipal ordinance, or board of education resolution, shall include the amount of the property tax deduction to be granted, and shall be approved by a two-thirds vote of the total authorized membership of the municipal governing body or board of education. An ordinance or resolution adopted under this paragraph shall not be subject to voter referendum, but may be repealed in the same manner in which it was adopted. The Legislature shall not appropriate funds for the purpose of reimbursing a municipality or school district electing to provide the additional deduction authorized under this paragraph for the amount of the additional deduction.

[Any] Except for an additional property tax deduction granted by a municipality or a board of education, any such deduction when so granted by law shall be granted so that it will not be in addition to any other deduction or exemption, except a deduction granted under authority of paragraph 3 of this section, to which the said citizen and resident may be entitled, but said citizen and resident may receive in addition any homestead rebate or credit provided by law. The State shall annually reimburse each taxing district in an amount equal to one-half of the tax loss to the district resulting from the allowance of tax deductions, other than additional deductions granted by a municipality or a board of education, pursuant to this paragraph.

(cf: Article VIII, Section 1, par. 4 amended effective December 8, 1988)

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 PERMIT LIMITED LOCAL OPTION SENIOR AND DISABLED PROPERTY TAX DEDUCTIONS
	YES	Shall the proposed amendment of Article VIII, Section I, paragraph 4 of the New Jersey Constitution, agreed to by the Legislature, allowing municipalities and non-regional boards of education to provide a local option property tax deduction to certain seniors and disabled citizens of this State, be approved?
		INTERPRETIVE STATEMENT
	NO	This proposed amendment of the State Constitution authorizes municipalities and school districts, other than regional school districts, to provide property tax deductions to certain senior and disabled residents, in addition to the $250 property tax deduction currently provided to those senior and disabled property taxpayers in the Constitution. This proposed amendment authorizes a municipal governing body or board of education to provide an additional property tax deduction by adopting an ordinance or resolution, as appropriate, by a vote of two-thirds of the governing body's or board of education's total authorized membership. Once adopted, the ordinance or resolution would remain in effect and could be repealed only by a two-thirds vote of the governing body's or board of education's total authorized membership. The proposed amendment prohibits the Legislature from appropriating State funds to reimburse municipalities or boards of education for the cost of this optional additional property tax deduction. Therefore, the cost of this property tax deduction would be borne exclusively by local property taxpayers.

STATEMENT

This concurrent resolution proposes to amend the New Jersey Constitution to permit municipalities and some school districts to provide a local option property tax deduction to certain senior and disabled residents. Under current law there is no mechanism for local units to grant property tax benefits to certain needy residents, in the event the local unit wishes to assist struggling taxpayers. This proposed amendment would grant municipalities and some boards of education the option of providing a property tax benefit in the form of a local option property tax deduction from the municipal or school district purposes portion of the property tax bill to qualifying residents. The amendment is not applicable to regional school districts.

The amendment allows the municipality or board of education to provide an additional property tax deduction to those senior and disabled citizens who are currently eligible to receive a property tax deduction under Article VIII, Section I, par. 4 of the State Constitution. In order to provide this benefit, the governing body of the municipality must adopt an ordinance authorizing the local option property tax deduction by a vote of two-thirds of the authorized membership of the governing body. A board of education must adopt a resolution granting the deduction by a two-thirds vote of the board's authorized membership. The amount of the deduction must be included in the ordinance or resolution. In the event that the municipal governing body or board of education seeks to revoke the local option property tax deduction, the revocation must be done through the same process as the adoption of the benefit.

The proposed amendment expressly prohibits the Legislature from appropriating State funds to reimburse a municipality or school district that grants this optional property tax deduction to its residents for the cost of the deduction. Because cost of a deduction granted by the proposed amendment would be borne exclusively by the local property taxpayers, specifically those property taxpayers who are not eligible to receive the deduction, the proposed amendment is revenue neutral to the State.