Revises criteria to establish base year for homestead property tax reimbursement after relocation.

2026-2027 Regular Session Introduced by Paul Moriarty and 1 co-sponsor

The bill changes how the base year is chosen for Homestead Benefit calculations when a homeowner relocates within New Jersey, affecting eligibility and benefit amounts.

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee

Summary of Bill S 2118 (New Jersey, 2022–23 Session)

Purpose and Intent

The bill revises how the base year is established for the Homestead Property Tax Reimbursement program after a taxpayer relocates within New Jersey.

Its goal is to determine eligibility and benefit levels when a homeowner changes residence, ensuring the reimbursement accurately reflects the new homestead’s tax burden.

Key Provisions and Changes

Base Year Determination after Relocation: The bill specifies revised criteria for selecting the base year used to calculate the Homestead Benefit when a homeowner moves to a different property within the state. The exact mechanics (e.g., whether the base year is the year of relocation, the year prior, or another defined year) are established to align with relocation scenarios.

Impact on Calculation of Reimbursement: By changing the base year rules, the calculation of the annual Homestead Benefit for relocated homeowners may change. This could affect the reimbursement amount relative to what a homeowner would have received if they stayed at their prior property.

Consistency with Program Rules: The proposed changes are intended to integrate with existing program rules governing eligibility, income thresholds, benefit amounts, and any applicable phased reductions or adjustments.

Affected Parties

Homeowners who relocate within New Jersey: The primary group affected, as their base year for reimbursement calculations may be adjusted under the new criteria.

Property owners currently receiving the Homestead Benefit: Depending on how relocation-specific base year rules are implemented, current recipients who relocate could see altered benefit calculations.

Tax and Assessment Administration: State agencies administering the Homestead Benefit program would implement and administer the new base year criteria, including potential revisions to forms, guidance, and processing systems.

Procedural and Timeline Aspects

Introduction and Referral: The bill was introduced in the New Jersey Senate on January 13, 2026 and referred to the Senate Community and Urban Affairs Committee.

Sponsors:

Primary sponsor(s): As listed, with co-sponsors include Troy Singleton and Paul Moriarty.

Next Steps: If advanced, the bill would typically move through committee hearings, potential amendments, and votes in both legislative chambers, followed by any endurance to the governor for signature or veto. Specific deadlines or session timelines would be determined by the Senate schedule and legislative calendar.

Potential Implications

Fairness and Predictability: A clearer, relocation-specific base year could provide more predictable benefit amounts for homeowners who move, reducing unintended disparities.

Administrative Burden: Implementing relocation-based base year rules may require updates to calculators, guidance materials, and IT systems used to determine Homestead Benefit eligibility and amounts.

Budgetary Effects: Changes to base year criteria could influence annual benefit expenditures, though exact fiscal impact would depend on the final language and implementation.

Note: The summary reflects the bill text as of its introduction and the stated action history. For precise language, definitions, and fiscal impact, review the official bill text and fiscal notes once available.