New Jersey Senate Bill SCR28

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Proposes constitutional amendment to limit assessment of homestead real property, and allow exemption on up to $50,000 of home's value.

Impact

The proposed legislation is expected to provide financial relief to homeowners by controlling property tax assessments, making it less likely for individuals to be unable to afford property taxes due to rising home values. This could lead to a stabilization of the housing market as homeowners may feel less pressured to sell due to fear of unaffordable tax increases. By limiting how much property taxes can increase annually, the amendment seeks to protect homeowners from sharp increases that can occur during economic booms.

Summary

SCR28 proposes a constitutional amendment in New Jersey that aims to limit the annual increase in property assessments for homestead real properties. If approved, the amendment would set a cap on annual increases to either 3% or the increase in the Consumer Price Index, whichever is lower. This applies to properties that are defined as the principal residence of owners and would be re-evaluated annually on January 1, starting the year after the amendment is approved. Additionally, the bill seeks to provide a homestead property tax exemption of up to $50,000 of assessed value.

Contention

Controversy may arise around this proposal, as some critics argue that limiting property assessment increases could undermine local government revenues which are largely dependent on property taxes. Concerns may also be voiced about how this amendment might impact the ability of municipalities to provide necessary services funded by these revenues. The bill requires careful consideration of how these exemptions and caps could affect the overall financial health of local governments and their ability to respond to community needs.