New Jersey Assembly Bill ACR42

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Freezes property taxes on primary residences of homeowners 65 years of age and over.

Impact

The impact of ACR42, if passed, would be significant as it directly modifies the financial obligations of older homeowners in New Jersey. This amendment would mean that they are not subject to property tax increases, providing an immediate alleviation of financial stress associated with rising living costs. Additionally, if the property is inherited by a surviving spouse who is also age 65 or over, the tax freeze would continue, reinforcing stability for families during transitional periods. However, if the property is transferred to another owner who does not meet the age requirement, the property would be reassessed, potentially leading to heightened financial responsibilities for younger owners.

Summary

ACR42 proposes an amendment to the New Jersey Constitution that aims to freeze property taxes on the primary residences of homeowners aged 65 years and over. The amendment would allow eligible individuals to apply for a freeze on the assessed value of their property taxes, ensuring that their tax bills remain stable over time. This initiative is designed to provide financial relief to older homeowners, who often face increasing property taxes as they age and live on fixed incomes. The freeze would be applicable once the homeowner turns 65 or when an eligible homeowner acquires a property after reaching that age, making it a significant adjustment in property tax management for this demographic.

Contention

Despite the apparent benefits, the amendment has faced criticism and raises points of contention regarding its long-term implications on state finances. Critics argue that freezing property taxes for a significant segment of the population may lead to reduced tax revenues for local governments, which rely on property taxes to fund essential services. There are concerns that this could create inequities in the tax system, where older homeowners benefit disproportionately compared to younger homeowners who may also struggle to afford rising taxes. This debate underscores a fundamental tension between providing support for vulnerable populations and ensuring adequate funding for local services.