Some Taxpayers Could Get Rebates Quicker Under New Bill

NEW JERSEY — The state's property tax break program for seniors and disabled residents could go from a rebate to a tax credit in hopes of giving eligible taxpayers relief more quickly. Efforts to reform the Senior Freeze program advanced Thursday, with a unanimous vote of approval in a State Senate committee.

The Senior Freeze program freezes the property tax rate for qualifying homeowners, so residents on fixed incomes don't pay tax increases each year. But currently, eligible individuals must pay the full property tax and get reimbursed later for the difference between the current year and the year they entered the program. If the State Senate bill becomes law, the reimbursement would become a credit applied directly to property tax bills.

The Senate Community and Urban Affairs Committee voted 5-0 Thursday to advance the legislation, which is now in the Senate Budget and Appropriations Committee's hands for approval.

Under the legislation, homeowners in the Senior Freeze program would pay their first two quarterly tax bills and then receive credits that lower their third- and fourth-quarter bills. The bill, if passed, would take effect on the first day of the tax year following enactment.

The deadline for 2021 applications for the Senior Freeze is Oct. 31. Click here for more info.

The average New Jersey property tax bill in 2021 totaled $9,284 — up 1.9 percent from the previous year and among the highest in the nation. About 161,000 New Jerseyans received an average Senior Freeze rebate of $1,191 in 2020 — the last complete year.