NJ Home Buyer Tax Credit Legislation Approved by General Assembly
Over the past few months in the Week in Review e-newsletter, the New Jersey Association of REALTORS® (NJAR®) has discussed the possibility of the New Jersey Legislature passing a bill that creates a state tax credit program for home purchases. Recently legislation, A-1678/S-692, was approved by the General Assembly establishing a New Jersey Home Buyer Tax Credit Program under the state gross income tax for home purchases made within a one year period following enactment of the law. As a means of bolstering the Garden State’s faltering economy, the bill creates a refundable tax credit of up to $15,000, or 5 percent of a home purchase price (whichever is less) for qualified home buyers. If eligible for the credit, home purchasers will receive the credit over three years, during which time the home purchased must be used as a primary residence.
State Legislature Continues Work on Property Tax Reform
On July 19, 2010, the New Jersey Senate Budget and Appropriations Committee met and continued its deliberations and actions on the 33-bill package submitted to the Legislature by Governor Chris Christie to reform New Jersey's property tax system. The Committee approved S-2072 which allows legal notices, such as public meeting notices, by government entities such as town councils and school boards to be posted on their websites rather than in local newspapers as a way to save local tax dollars.
The committee also took testimony but did not vote on S-2173 which limits the amount of sick leave compensation payable upon the retirement of members of school boards and local governments to $15,000. Under current state law, there is no limit on the amount of sick time that can be reimbursed. The Legislature will continue to meet throughout the summer and fall of 2010 to continue considering these and other proposals as a way to reduce the amount that New Jersey residents pay in property taxes. Stay tuned to the Week in Review for additional information.
