New Jersey Assembly Bill A2778

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Increases annual income limitation for senior and disabled citizens' eligibility for $250 property tax deduction and bases future annual income limitations on annual CPI changes.

Impact

The adjustment of the income limits is expected to significantly benefit seniors and disabled individuals who may struggle with property taxes, especially considering the rising cost of living. By raising the limit to $20,000 and tying future increases to CPI, the bill seeks to alleviate financial burdens on these vulnerable populations, thereby enhancing their financial security and ability to remain in their homes. This change could also influence housing stability for seniors and disabled individuals in New Jersey, making it easier for them to manage their expenses without the fear of losing property due to tax liabilities.

Summary

Assembly Bill A2778, introduced in the New Jersey 221st Legislature, proposes an increase in the annual income limitation for senior citizens and disabled individuals to be eligible for a property tax deduction of $250. The current income limit for eligibility is set at $10,000, a figure that has not been adjusted for inflation since 1983. The bill aims to raise this limit to $20,000, which reflects actual inflation from 1983 to 2013. Additionally, it establishes that future income limits will be adjusted annually based on changes in the Consumer Price Index (CPI), ensuring that the eligibility thresholds remain relevant over time.

Contention

One notable point of contention surrounding Assembly Bill A2778 is the requirement for voter approval of a constitutional amendment that would authorize the increased income limit. Some legislators and stakeholders may express concerns about the potential fiscal impact on state revenues, as increasing the deduction limits could reduce tax income for the state. While supporters argue for the necessity of adjusting these limits to reflect economic realities, opponents might worry that such changes could create a budgetary strain, impacting funding for other essential state services.