November 3, 2011
Re: Implementing the 2010 Homestead Credit Benefit Program
The Division of Local Government Services has issued Local Finance Notice 2011-31, which provides an overview and details about the implementation of the State’s Homestead Benefit Program. The program, for the 2010 property tax year, will be provided to eligible residential property owners as a tax credit on their February 2012 property tax bill.
The overall process is as follows:
- Earlier this year, the Division of Taxation notified eligible residential (homestead) property owners of the eligibility requirements and provided them an application.
- Applications were filed and reviewed by the Division, eligible owners were approved, and credit amounts were calculated.
- Tax collectors, through their collection system vendors, will receive, in early December 2011, a data file of the parcels and credit amounts calculated by the Division of Taxation.
- A document listing each parcel and amount will be provided to each collector through the Tax Collector Document Library in My NewJersey.
- By January 1, 2011 the tax collector will issue an “adjusted” first quarter (February) tax bill to qualified properties.
- On February 1, the municipality will receive a payment from the State equal to the total amount of credits and will be reimbursed for the cost of the printing and mailing of the adjusted tax bill.
Municipalities will be reimbursed for the direct expenditures involved in issuing the adjusted 2012 February tax bill. The reimbursement will be at a fixed rate of $0.60 per line item receiving credit, $0.45 for postage, $0.11 for forms and printing and $0.05 for preprinted envelopes. Labor cost will not be reimbursed.
Payment for the homestead credit and the formula-based reimbursement for the costs associated with sending the adjusted bills will be electronically sent to municipalities on or before February 1, 2012.
The Division has determined that the Homestead Credit Benefit information can be treated as public information, once adjusted tax bills are produced. The amount of the credit should be treated as a disclosable, including through data transfers, in the same manner that senior citizen or veteran deductions are treated.
Questions concerning the credit transaction process or this Local Finance Notice can be emailed to the Division at firstname.lastname@example.org. and Frequently Asked Questions about the Homestead Benefit Program for property owners is available on the Division of Taxation website.
Very truly yours,
William G. Dressel, Jr.