New Jersey-2024-ACR25-Introduced

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

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

a. Amend Article VIII, Section I, paragraph 1 to read as follows:

1. (a) Property shall be assessed for taxation under general laws and by uniform rules. All real property assessed and taxed locally or by the State for allotment and payment to taxing districts shall be assessed according to the same standard of value, which shall be true value, being the value at current market prices for an arms-length transaction, except as otherwise permitted herein, and such real property shall be taxed at the general tax rate of the taxing district in which the property is situated, for the use of such taxing district.

(b) The Legislature shall enact laws to provide that the value of land, not less than 5 acres in area, which is determined by the assessing officer of the taxing jurisdiction to be actively devoted to agricultural or horticultural use and to have been so devoted for at least the 2 successive years immediately preceding the tax year in issue, shall, for local tax purposes, on application of the owner, be that value which such land has for agricultural or horticultural use.

Any such laws shall provide that when land which has been valued in this manner for local tax purposes is applied to a use other than for agriculture or horticulture it shall be subject to additional taxes in an amount equal to the difference, if any, between the taxes paid or payable on the basis of the valuation and the assessment authorized hereunder and the taxes that would have been paid or payable had the land been valued and assessed as otherwise provided in this Constitution, in the current year and in such of the tax years immediately preceding, not in excess of 2 such years in which the land was valued as herein authorized.

Such laws shall also provide for the equalization of assessments of land valued in accordance with the provisions hereof and for the assessment and collection of any additional taxes levied thereupon and shall include such other provisions as shall be necessary to carry out the provisions of this amendment.

(c) The Legislature shall enact laws providing a homestead property assessment limitation. Any law so enacted shall require that homestead real property, used as the principal residence of the owners thereof, shall be assessed at its true value as of the January 1 next following the approval by the voters of this proposed amendment, and shall be reassessed annually on January 1. Any law so enacted shall also limit any increases resulting from such reassessment to the lower of either three percent of the assessed value of the property for the prior year or the percentage change in the Consumer Price Index for All Urban Consumers, or successor reports for the preceding calendar year as reported by the United States Department of Labor, Bureau of Labor Statistics, or its successor agency.

Any law enacted under this subparagraph also shall require that homestead real property shall be assessed at true value as of January 1 of the year following a change of ownership, as defined by the Legislature. Thereafter, any annual increase in the assessed value of the property shall be subject to the limitations required by this subparagraph. The limitations established by this subparagraph shall not apply to an added assessment that results from an improvement.

(cf: Article VIII, Section I, paragraph 1 amended effective December 5, 1963)

b. Amend Article VIII, Section I, paragraph 5 to read as follows:

5. a. The Legislature may adopt a homestead statute which entitles homeowners, residential tenants and net lease residential tenants to a rebate or a credit of a sum of money related to property taxes paid by or allocable to them at such rates and subject to such limits as may be provided by law. Such rebates or credits may include a differential rebate or credit to citizens and residents who are of the age of 65 or more years, or less than 65 years of age who are permanently and totally disabled according to the provisions of the Federal Social Security Act, or are 55 years of age or more and the surviving spouse of a deceased citizen or resident of this State who during his lifetime received, or who, upon the adoption of this amendment and the enactment of implementing legislation, would have been entitled to receive a rebate or credit related to property taxes.

b. The Legislature shall enact laws providing: (1) a full property tax exemption on the first $25,000 of value assessed to a homestead property; and (2) an exemption from all non-school district property taxes on the third $25,000 of value assessed to a homestead property.

(cf: Article VIII, Section I, paragraph 5 amended effective December 2, 1976)

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 LIMIT CERTAIN PROPERTY ASSESSMENTS AND REQUIRE CERTAIN EXEMPTIONS

YES

Do you approve amending the Constitution to limit the change in the value of a person's primary home every year for property tax payments, and to allow an exemption on up to $50,000 of assessed value?

The value of a person's home affects their property tax bill. The value of a person's home could not increase more than three percent of the value in the last year, or the increase in the consumer price index for the last year, whichever is lower.

The first $25,000 of value assessed on a person's home would be property tax exempt. The third $25,000 of value would be exempt from non-school district property taxes.

INTERPRETIVE STATEMENT

This amendment would require the Legislature to limit annual increases in the value of an owner's principal residence, for the calculation of property tax payments. The amendment would also require the Legislature to allow a principal residence property tax exemption on up to $50,000 of assessed value.

Homes would be assessed on January 1 each year. Any annual increase in a home's value would be limited to three percent of the value in the last year or the increase in the consumer price index, whichever is lower.

When a home changes ownership, it would be valued as of January 1 of the next year. Then, the increase limits would again apply until the next time the home changes ownership.

The first $25,000 of a home's value would be property tax exempt. Value assessed between $50,000 and $75,000 would be exempt from non-school district property taxes.

STATEMENT

If approved by the voters of the State, this proposed constitutional amendment would require the Legislature to place a limit on annual assessment increases for homestead real property. Homestead real property, which is the principal residence of the owners of the property, would be assessed at true value as of the January 1 next following the approval by the voters of this proposed amendment, and would then be reassessed annually on each succeeding January 1. Any annual increase in the property's assessment would be limited to 3% or the Consumer Price Index rate, whichever is lower. When a homestead real property changes ownership, the property would be assessed at true value as of January 1 of the year following the change of ownership. Thereafter, any limitations in the annual increase in the assessed value of the property would once again apply until the next time the property changes ownership. The limitations on assessment increases established by this amendment would not apply to an added assessment that results from an improvement.

Additionally, this proposed constitutional amendment would require the Legislature to provide a homestead property tax exemption on up to $50,000 of assessed value. Specifically, this exemption would consist of (1) a full property tax exemption on the first $25,000 of value assessed to a homestead property, and (2) an exemption from all non-school district property taxes on the third $25,000 of value assessed to a homestead property, meaning value assessed between $50,000 and $75,000.