New Jersey Assembly Bill A3062

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Maintains eligibility for veteran's property tax deduction when property is transferred to trust.

Impact

If passed, A3062 would allow veterans to preserve their property tax benefits without the risk of losing them upon transferring their property into a trust for estate planning purposes. The bill stipulates that veterans in this situation would need to certify their continued occupancy annually to the municipal assessor, thus ensuring that the benefits are reserved for eligible veterans who occupy their homes.

Summary

Assembly Bill A3062 aims to maintain eligibility for veterans to claim a property tax deduction even when they transfer ownership of their property into a trust. Current law requires that a veteran must have legal title to the property in order to qualify for such deductions. This bill specifically amends existing legislation to clarify that if a veteran places their property into a trust, they can still receive the property tax deduction as long as they continue to occupy the property as their primary residence.

Contention

The main points of contention surrounding this bill may arise from concerns over its implications for local tax revenues, as allowing property in a trust to remain eligible for tax deductions could potentially decrease the tax base for municipalities. Moreover, there could be debates regarding the correct oversight and administration of the trust's responsibilities to ensure that veterans maintain their primary residence status.

Sponsor_support

The bill is sponsored by Assemblyman Ronald S. Dancer, who argues that veterans should not have their property tax benefits stripped away simply for making sound decisions to protect their assets through trusts. The intent is to provide a legislative safeguard for those who have served in the military, acknowledging their unique financial situations and the need for flexibility in managing their property.