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Eligibility for Property Tax Deductions

While property taxes always seem to be rising, there are some property owners who are entitled to reductions in their real property taxes due to deductions which are authorized by State law.

   
Senior citizens who are residents of the State and are of the age of 65 or more years and meet certain income requirements are entitled to a deduction of $250.00 (N.J.S.A. 54:4-8.41).

   
Citizens and residents of the State who are less than 65 years of age and are permanently and totally disabled, and meet certain income limitations are also entitled to a reduction of $250.00 in their real estate taxes.  (N.J.S.A. 54:4-8.41).

   
The surviving spouse/civil union partner of a deceased citizen and resident of this State who had been entitled to a deduction as a senior citizen or due to a permanent and total disability shall also receive the real property tax deduction so long as he or she shall remain unmarried (or has not entered into another civil union) and reside in the same dwelling for which the deduction had been granted, upon the same conditions.  This is so even if the spouse/civil union partner is under the age of 65 and not permanently and totally disabled, provided, however, the surviving spouse/civil union partner is 55 years of age or older at the time of death of his/her originally qualifying spouse/civil union partner.  (N.J.S.A. 54:4-841a).

   
Citizens and residents granted a deduction as a senior citizen, or for being permanently and totally disabled, as referred to above, are entitled to receive any homestead rebate or credit if they meet the compliance requirements.

 
In order to obtain the deductions referred to above, a qualifying resident must file a written application requesting the deductions. (N.J.S.A. 54:4-8.42).  Forms for this may be obtained from the local tax assessor.  Once obtained, the person who has been allowed a deduction is required to file an annual statement of his/her income on forms obtainable from their local tax assessor.

   
Citizens and residents of this State who are honorably discharged as war veterans, and their surviving spouses/civil union partners, (provided they have not remarried or entered into another civil union) are also entitled to a $250.00 deduction in their real property taxes. (N.J.S.A. 54:4-8.11).  This deduction does not have any income limitation requirements.  Written application must be submitted on forms provided by the local tax assessor to obtain this deduction.  Once a claim has been filed with and allowed by the tax assessor, the deduction shall continue in force from year to year without the need to file any further claim forms unless so required by the tax assessor.  (N.J.S.A. 54:4-8.16).  In certain cases, New Jersey state law provides for a total exemption from real property taxation for honorably discharged veterans suffering certain disabilities and their qualifying spouses/civil union partners. (N.J.S.A. 54:4-3.30).

Full post as published by New Jersey Law Blog on March 24, 2008 (boomark / email).