Property tax rebates are on the way in N.J.
Senior and disabled citizens should have already filed for benefit

New Jersey homeowners with less than $250,000 income in 2006 are beginning to see some property tax relief.

The New Jersey Division of Taxation began mailing the 2006 homestead rebate applications on April 26. The applications for the rebate are being mailed in two groups, according to a New Jersey Division of Taxation press release.

Senior and disabled homeowners should have already received and filed their applications, as their deadline for filing was June 1. Their rebates are expected to be mailed on or about July 31. Applications for nonsenior homeowners are expected to be mailed in July.

Under the Homestead Property Tax Credit/Rebate legislation signed by Gov. Jon Corzine on April 3, to be implemented as part of the state's fiscal year 2008 budget, homeowners must meet certain criteria in order to be eligible for the 2006 rebate, according to the Division of Taxation.

Homeowners must have owned and occupied a home in New Jersey as their principal residence on Oct. 1, 2006. The home must be subject to local property taxes, and its 2006 property taxes must have been paid. To be eligible for the rebate, homeowners must also have had a gross income for 2006 of $250,000 or less.

The new Homestead Property Tax Credit/Rebate Program replaces the Fair Rebate Program, which had superseded the NJ SAVER Rebate Program in 2004. Under the new program, benefits are based on a homeowner's New Jersey gross income and the amount of property taxes paid on the homeowner's principal residence.

Homeowners will receive a percentage of the first $10,000 of their property taxes: 20 percent for income of $100,000 or less, 15 percent for income between $100,001 and $150,000, and 10 percent for income between $150,001 and $250,000, according to the Division of Taxation.

Benefits under the new Homestead Property Tax Credit/Rebate Program are in addition to the state's other property tax relief programs such as the Senior Freeze (Property Tax Reimbursement), the property tax deductions for senior citizens and veterans, and the property tax deduction/credit on the state income tax return. Residents who qualify can still apply for and receive benefits under those programs.

With very few exceptions, homeowner rebate applications must be filed by phone or via the Internet. The Division of Taxation urges homeowners to complete the worksheet in their rebate application packet before attempting to file.

The homeowner rebate automated telephone filing system at 1-877-658-2972, along with the Internet filing application on the Division of Taxation Web site at www.state.nj.us/treasury/taxation, will be available 24 hours a day, 7 days a week during the filing period. For additional information, call 1-888-238-1233 or visit www.state.nj.us/treasury/taxation.