TRENTON, N.J. – New Jersey lawmakers are proposing a sweeping new property tax relief program for seniors that would reimburse half of the school property taxes paid by residents age 65 and older.
The measure, titled the “Homestead School Property Tax Reimbursement Act,” is sponsored by Senators James W. Holzapfel (R–Monmouth, Ocean) and Anthony M. Bucco (R–Morris, Passaic). It would establish a state-funded reimbursement program to return 50 percent of the school portion of property taxes paid on a senior’s primary residence each year. Payments would be issued through the state’s Casino Revenue Fund, which currently supports senior and disability programs.
The proposal phases in eligibility based on income over three years. In the first year, seniors earning $35,000 or less would qualify; the income limit would rise to $75,000 in the second year, and after that, all residents aged 65 and older would be eligible regardless of income. A surviving spouse at least 55 years old who remains in the same home would also qualify for the benefit.
Eligible claimants would apply annually to the Division of Taxation, which would administer the program and issue payments by July 15 of the year following the tax year. The legislation defines “homestead” broadly to include single-family homes, condominiums, co-ops, mobile homes, and units in continuing care communities.
The bill’s sponsors said the measure is designed to ease one of the largest financial pressures on retirees — the school tax portion of property bills, which can account for more than half of total local property taxes in many parts of the state.
The act would take effect on January 1 of the first tax year following its enactment.
A proposed “Homestead School Property Tax Reimbursement Act” would refund seniors 50 percent of the school taxes paid on their primary homes, with eligibility expanding statewide within three years.
