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A 1672

Makes disabled persons receiving disability payments pursuant to federal Railroad Retirement Act eligible to receive homestead property tax reimbursement.

2024-2025 Regular Session Introduced by Rosy Bagolie and 13 co-sponsors

Expands NJ Senior Freeze to include disability payments under the Railroad Retirement Act, aligning eligibility with Social Security disability for ~300 more homeowners.

Approved P.L.2025, c.24.
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Bill Summary · A 1672

Summary — A1672 (P.L.2025, c.24)

Status: Approved — P.L.2025, c.24 (signed into law, Chapter 507)
Introduced: Prefiled for the 2024–2025 session; formally introduced Jan. 10, 2025
Primary sponsor: Assemblywoman Linda Rosenthal (with cosponsors William Colton, George Alvarez, Steven Raga)

Purpose

A1672 expands eligibility for New Jersey’s homestead property tax reimbursement program (commonly called the “Senior Freeze”) by adding beneficiaries who receive disability payments under the federal Railroad Retirement Act to the statutory definition of “disabled person.” Previously, eligibility for disabled claimants was limited to those receiving Title II Social Security disability benefits.

Key provisions

  • Amends Section 1 of P.L.1997, c.348 (C.54:4-8.67) to redefine “disabled person” to include:
    • Individuals receiving Title II Social Security disability payments, and
    • Individuals receiving disability payments under the federal Railroad Retirement Act (45 U.S.C. §231 et seq.), when those payments were received on December 31, 1998 or on December 31 in all or part of the year for which a homestead reimbursement is claimed.
  • Does not change other eligibility criteria in the homestead reimbursement statute (age, income limits, ownership/residency requirements, base-year rules, or how reimbursements are calculated).

Who is affected

  • Newly eligible: Railroad Retirement disability beneficiaries who previously were ineligible solely because their disability benefit came from the Railroad Retirement Act rather than Social Security Title II.
  • OLS estimate: roughly 280–330 additional New Jersey homeowners (the fiscal estimate uses about 300) could become eligible.
  • Other program rules still apply (income caps, residency/ownership requirements, base-year mechanics).

Fiscal impact and timing

  • Office of Legislative Services (OLS) estimate: increased annual State costs from the Property Tax Relief Fund.
    • FY2027: $49,560
    • FY2028: $92,722
    • FY2029: $129,453
  • Reasoning: New eligibles establish a base year (estimated calendar year 2024) and may claim the difference between subsequent years’ property taxes and that base year; payments commence in July following the claim year, so costs begin in FY2027.
  • OLS notes the railroad-disability beneficiary population is declining, but aggregate reimbursements rise with property tax increases.

Legislative history

  • Reported favorably by Assembly Housing, Assembly Appropriations, Senate committees; unanimous votes recorded in both houses (Assembly 77–0–0; Senate 35–0).
  • Delivered to Governor and signed into law (Chapter 507). (Final enactment: P.L.2025, c.24.)

Related legislation

  • Companion/related: S1285, S6822 / prior-session A4058

This law narrows a technical gap in the Senior Freeze program by ensuring that railroad-retirement disability beneficiaries who otherwise meet program requirements are eligible for homestead property tax reimbursements on the same basis as Social Security disability recipients.

Compiled from official sources — confirm details with the bill’s official record.

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