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Assemblyman Diegnan Property Tax Alleviation Plan

Assemblyman Diegnan Property Tax Alleviation Plan

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Published by PatrickDiegnan
Provides refundable gross income tax credit for New Jersey's overburdened taxpayers for an amount of annual homestead property tax that exceeds 7 percent of homestead owner's New Jersey gross income.
Provides refundable gross income tax credit for New Jersey's overburdened taxpayers for an amount of annual homestead property tax that exceeds 7 percent of homestead owner's New Jersey gross income.

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Published by: PatrickDiegnan on Apr 12, 2012
Copyright:Attribution Non-commercial


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ASSEMBLY, No. 2733
Sponsored by:Assemblyman PATRICK J. DIEGNAN, JR.District 18 (Middlesex)SYNOPSIS
Provides refundable gross income tax credit for amount of annual homesteadproperty tax that exceeds 7 percent of homestead owner's New Jersey grossincome.
As introduced.
limiting annual homestead property taxes to a percentage1of the homestead owner's annual New Jersey gross income by2allowing a refundable tax credit under the New Jersey gross3income tax, supplementing Title 54A of the New Jersey Statutes.45
by the Senate and General Assembly of the State
of New Jersey:
 781. a. A resident taxpayer shall be allowed a credit against the9tax otherwise due under the New Jersey gross income tax,10N.J.S.54A:1-1 et seq., for the taxable year in an amount equal to the11amount by which the property taxes due and paid by the taxpayer in12that taxable year on the taxpayer's homestead exceed 7% of the13taxpayer's gross income in that taxable year.14b. If a resident taxpayer has more than one homestead as a15result of a change in principal residence during the taxable year, a16credit shall be allowed pursuant to this section in relation to the17amount of the property taxes actually paid by or allocable to the18resident taxpayer on more than one homestead, provided however,19that the aggregate amount of the property taxes used in calculating20the credit shall not exceed the total of the proportionate amounts of 21property taxes assessed and levied against or allocable to each22homestead for the portion of the taxable year the taxpayer occupied23it as a principal residence.24c. (1) If title to a homestead is held by more than one25individual as joint tenants or tenants in common, each individual26shall be allowed a credit pursuant to this section only in relation to27the individual's proportionate share of the property taxes assessed28and levied against the homestead. The individual's proportionate29share of the property taxes on that homestead shall be equal to the30share of that individual's interest in the title. Title shall be31presumed to be held in equal shares among all co-owners, but if the32taxpayer satisfactorily demonstrates to the director that the title33provides for unequal interests, either under the conveyance under34which the title is held, or as otherwise may be demonstrated, that35taxpayer's share of the property taxes paid on that homestead shall36be in proportion to the taxpayer's interest in the title.37(2) Resident taxpayers shall include individuals within any of 38the filing categories set forth in N.J.S.54A:2-1 and any individual or39individuals not required to file a gross income tax return because40their gross income was below the minimum taxable income41threshold established in N.J.S.54A:2-4 and N.J.S.54A:8-3.1. In the42case of a married individual filing a separate New Jersey gross43income tax return, if the spouse of the resident taxpayer maintains44the same homestead as the resident taxpayer and also files a45separate gross income tax return in this State the credit claimed46under this subsection shall be equal to one-half of the amount of the47
DIEGNAN3credit allowable had the spouses filed a joint return and credit1application.2d. If the homestead of a resident taxpayer is a residential3property consisting of more than one unit, that resident taxpayer4shall be allowed a credit pursuant to this section only in relation to5the proportionate share of the property taxes assessed and levied6against the residential unit occupied by that resident taxpayer, as7determined by the local tax assessor.8e. Nothing in this section shall preclude a co-owner, who is9other than a husband or wife claiming a credit on the same10homestead, from receiving a credit determined pursuant to this11section if another co-owner claims a credit pursuant to this section,12provided however, that each claim for a credit determined pursuant13to this section shall be separately subject to the provisions of 14subsections c. and d. of this section.15f. In the case of a claim by a resident taxpayer for a credit for a16homestead that is a unit in a cooperative, mutual housing17corporation or continuing care retirement community, the director18may provide that the application shall include the name and address19of the location of the property and the amount of real property taxes20attributed to the cooperative, mutual housing residential unit or21continuing care retirement community residential unit, as shall be22indicated in an official notice which shall be furnished by the23cooperative, mutual housing corporation or continuing care24retirement community for the same year.25g. No credit shall be allowed pursuant to this section except26upon annual application therefor, in any manner, upon any form,27and in any format, whether in writing or otherwise, as shall be28prescribed by the director. The director may require a credit29application include a copy of the appropriate property tax bill for30the taxable year. The director may require such other verification31of eligibility for a credit as the director may deem necessary. The32director may require that the application for a credit be submitted33(1) as part of the resident taxpayer's gross income tax return filed34pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-135et seq., or, (2) on any other form, in any manner or format and at36any time and prior to any date as the director shall prescribe if (a)37the claimant is not required to file a gross income tax return or (b)38the resident taxpayer has filed an application for extension of time39to file the taxpayer's gross income tax return.40h. The amount of the credit allowed pursuant to this section41shall be applied against the tax otherwise due under N.J.S.54A:1-142et seq., after all other credits and payments. If the credit exceeds43the amount of tax otherwise due, that amount of excess shall be an44overpayment for the purposes of N.J.S.54A:9-7; provided however,45that subsection (f) of N.J.S.54A:9-7 shall not apply.46i. As used in this section:47

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