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Bill > ACR87


NJ ACR87

NJ ACR87
Proposes constitutional amendment to limit assessment of homestead real property.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

If approved by the voters of the State, this proposed constitutional amendment would require the Legislature to place a limit on annual assessment increases for homestead real property. Homestead real property, which is the principal residence of the owners of the property, would be assessed at true value as of October 1 next following the approval by the voters of this proposed amendment, and would then be reassessed annually in each succeeding tax year as provided by law. Any annual increase in the property's assessment would be limited to 3% or the Consumer Price Index rate, whichever is lower. When a homestead real property changes ownership, the property would be assessed at true value as of October 1 of the year following the change of ownership, for use in the next succeeding tax year. Thereafter, any limitations in the annual increase in the assessed value of the property would once again apply until the next time the property changes ownership. Under the proposed amendment, "owner" also includes a person who holds a life estate, life tenancy, or lifetime right to that real property, or a lease for a period of 99 years, and the owner of the residential portion of a mixed-use property.

AI Summary

This joint resolution proposes a constitutional amendment to limit property tax assessments for homestead (primary residential) properties in New Jersey. The amendment would require that homestead properties be initially assessed at their true market value as of October 1 following voter approval, and then be reassessed annually with restrictions on increases. Specifically, the annual assessment increase would be capped at either 3% or the Consumer Price Index (CPI) rate, whichever is lower. When a homestead property changes ownership, it would be reassessed at full market value for the next tax year, after which the assessment increase limitations would again apply. The definition of "owner" is broadly defined to include not just direct property owners, but also those with life estates, 99-year leases, and owners of residential portions of mixed-use properties. By limiting annual assessment increases, the resolution aims to provide property tax predictability and potentially help homeowners manage rising property tax burdens, particularly in areas with rapidly appreciating real estate values.

Committee Categories

Housing and Urban Affairs

Sponsors (2)

Last Action

Introduced, Referred to Assembly Housing Committee (on 01/09/2024)

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