Bill Text: NJ ACR87 | 2024-2025 | Regular Session | Introduced

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Bill Title: Proposes constitutional amendment to limit assessment of homestead real property.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Housing Committee [ACR87 Detail]

Download: New_Jersey-2024-ACR87-Introduced.html

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ASSEMBLY CONCURRENT RESOLUTION No. 87

STATE OF NEW JERSEY

221st LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

 

 

Sponsored by:

Assemblyman  LOUIS D. GREENWALD

District 6 (Burlington and Camden)

Assemblyman  SEAN T. KEAN

District 30 (Monmouth and Ocean)

 

 

 

 

SYNOPSIS

     Proposes constitutional amendment to limit assessment of homestead real property.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  

A Concurrent Resolution proposing to amend Article VIII, Section I, paragraph 1 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

 

     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 real property used as the principal residence of the owners thereof shall be assessed at its true value as of October 1 next following the approval by the voters of this proposed amendment for use in the next succeeding tax year, and shall be reassessed annually thereafter according to law.  Any laws so enacted also shall limit the annual increase resulting from an annual 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, whichever is less; except that homestead real property shall be assessed at its true value as of October 1 of the year following a change of ownership, as defined by the Legislature, for use in the next succeeding tax year.  Thereafter, any annual increase in the assessed value of the property shall be subject to the limitations required by this subparagraph.

     For the purposes of this subparagraph, "owner" shall also include a person who holds a life estate, life tenancy, or lifetime right to that real property, or a lease for a period of 99 years, and shall further also include the owner of the residential portion of a mixed-use property.

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

 

     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 Attorney General, 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:

		HOMESTEAD PROPERTY ASSESSMENT LIMITATION
	YES	Do you approve the proposed amendment to the State Constitution that would provide a homestead property assessment limitation for residential real property used as the principal residence of the owners thereof, whereby such residential real property shall be reassessed annually for use in the next succeeding tax year, and any increase in assessment for the next tax year shall not exceed 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 for the preceding calendar year, until such time as the property changes ownership?
		INTERPRETIVE STATEMENT
	NO	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 its market value as of the October 1 next following the approval by the voters of this proposed amendment, and would then be reassessed annually thereafter according to law.  Any annual increase in the property's assessment would be limited to 3% or the Consumer Price Index rate, whichever is lower.  When a principal residence changes ownership, the property once again would be assessed at its market value as of October 1 of the year following the change of ownership, for use in the next succeeding tax year. 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.

 

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 October 1 next following the approval by the voters of this proposed amendment, and would then be reassessed annually in each succeeding tax year as provided by law.  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 October 1 of the year following the change of ownership, for use in the next succeeding tax year. 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.

     Under the proposed amendment, "owner" also includes a person who holds a life estate, life tenancy, or lifetime right to that real property, or a lease for a period of 99 years, and the owner of the residential portion of a mixed-use property.