Are You Taking Advantage of NJ’s Property Tax Relief Programs?

New Jersey has always ranked as having some of the highest real estate taxes in the country. For a long time, many taxpayers could deduct all of those taxes on their federal tax return until recently when the Tax Reform and Jobs Act of 2017 was passed. Going forward, State and Local taxes are limited to only $10,000, which in New Jersey can be easily surpassed by an average household’s real estate taxes alone. As the conversation about New Jersey’s high real estate taxes continues, it is important to make sure you are doing what you can to take advantage of any property tax relief programs that exist in the state.

$250 Property Tax Deduction/Exemption

Senior Citizens & Disabled Persons, Veterans, and 100% Disabled Veterans have the opportunity to receive a $250 deduction/exemption if they meet certain requirements. All relief programs require applicants to be New Jersey residents for a least one year prior to October 1^st and own/occupy their home as of October 1^st of the pretax year. In addition, if the program has specific requirements, there are legal definitions on the application forms that you should read to confirm you meet the requirements. If you are a surviving spouse or civil union partner, you still may be eligible for the relief. When applying, you will have to provide documentary proofs with your application.

Initial Applications:

Property Tax Deduction – https://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/ptd.pdf

Veterans Tax Deduction – https://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/vss.pdf

Disabled Veterans Tax Exemption – https://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/dvsse.pdf

Active Military Service Property Tax Deferment

An active military serviceperson may qualify for a deferment of their property tax bill. Someone may apply for the deferment on the serviceperson’s behalf while they are deployed or mobilized for service during war. When the serviceperson returns, there is a 90 day period that the deferred property taxes must be paid. Municipal charges cannot be deferred and if payments are not made by the 90 day period interest will be assessed.

Form AMSPTD – https://www.nj.gov/treasury/taxation/pdf/other_forms/amsptd.pdf

Environmental Opportunity Zone Exemption

Property that is being remediated, revitalized, and redeveloped after being contaminated may be eligible for this exemption. Unlike some other deductions or exemptions, this one requires a financial agreement between the taxpayer and municipality.

Form E.O.Z-1 – https://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/eoz1.pdf

Non-Profit Organization Exemption

A non-profit entity may qualify for a property tax exemption. The organization’s formation documents will be needed to help determine the exemption. Entities may include religious, charitable, or educational organizations.

Form I.S. – https://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/initialstment.pdf

Renewable Energy System Exemption

Residential, commercial, or industrial property with renewable energy systems may receive a limited exemption. The real estate tax exemption is the difference between the total assessed value of the property prior to the renewable energy system installation.

Form CRES – https://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/cres.pdf

Automatic Fire Suppression Exemption

Residential, commercial, or industrial buildings may receive a partial exemption for installed and certified automatic fire suppression systems. Similar to the renewable energy system exemption, the exemption amount is the difference between the property with and without the automatic fire suppression system.

Form FSS – https://www.state.nj.us/treasury/taxation/pdf/other_forms/lpt/fss.pdf

Each relief program is separate and has its own requirements. Prior to applying, you should review the eligibility requirements and necessary forms to confirm you have all the information necessary to submit a timely application.

Consult with a tax professional to evaluate your current tax situation to see if any of the above property tax relief opportunities apply. Contact Alloy Silverstein today for more information.