As part of its policy to reduce the burden of property taxes, New Jersey permits a tax rebate for homeowners and tenants upon the filing of a properly completed application.
AP&M Alert: *Deadline for filing FAIR homeowner rebate applications is October 31, 2006.
The FAIR Rebate Program provides rebates for homeowners and tenants who occupied their principal residence in New Jersey on October 1, paid property taxes on that dwelling either directly or through rent, and whose gross income for the entire year does not exceed certain limits. Only New Jersey residents who were either homeowners or tenants on October 1, 2005, are eligible for a 2005 FAIR rebate. Homeowners and tenants file different applications according to their status on October 1:
| Rebate Amount |
| Age 65 or Older and/or Disabled |
| Gross Income |
Rebate Amount |
Not over $70,000
$70,001 to $125,000
$125,001 to $200,000
|
$1,000 - $1,200
$600 - $800
$500
|
|
Under Age 65 and NOT Disabled
|
| Gross Income |
Rebate Amount |
Not over $70,000
$70,001 to $125,000
$125,001 to $200,000
|
$350
$250
$200
|
Tenant:
If you were a tenant on October 1, 2005, file a Form TR-1040, FAIR tenant rebate application, contained in the 2005 resident income tax return booklet. More information for tenants.
Homeowner:
If you were a homeowner on October 1, 2005, a 2005 FAIR homeowner rebate application will be mailed to you. More information for homeowners.
If you were neither a homeowner nor a tenant on October 1, 2005, you are not eligible for a 2005 FAIR rebate, even if you owned a home or rented a qualified dwelling for part of the year.
Homeowner Eligibility
You are eligible for a 2005 New Jersey FAIR homeowner rebate if your domicile (or permanent legal residence) is in New Jersey and you meet the following conditions:
- Own and occupy a home in New Jersey that was your principal residence on October 1, 2005;
- Have gross income for 2005 of $200,000 or less;
(Do not include income that is not subject to New Jersey gross income tax such as Social Security, Railroad Retirement benefits, or unemployment compensation. View list of other nontaxable income.)
- The home must be subject to local property taxes, and 2005 property taxes must have been paid.
New Jersey residents are not
eligible for FAIR homeowner
rebates if no property taxes are paid
on their dwellings. This includes:
- Homeowners completely exempt from paying property taxes on their principal residence. This can include certain disabled veterans and their unmarried surviving spouses who may claim a 100% exemption from local property taxes under certain conditions.
- Homeowners who made P.I.L.O.T. (Payments-in-Lieu-of-Tax) payments to their municipality. These payments are not considered property taxes for purposes of the FAIR rebate.
How to File
Homeowners have until October 31, 2006, to file 2005 FAIR homeowner rebate applications by phone (1- 877-658-2972). Homeowners who need to file a paper application can request one through either of the automated filing systems after entering their ID and PIN which was contained in the Fair Homeowner Rebate application that was mailed to you. The automated phone and Internet filing systems are available 24 hours a day, 7 days a week.
Please refer to the following links for further information from the Division of Taxation: 2005 FAIR rebate amounts for homeowners and tenants.
For additional information regarding the 2005 FAIR rebate or any other state tax issue, please contact any of Amper, Politziner & Mattia's State & Local Tax professionals:
Richard A. Sackin, CPA
(732) 287-1000
John C. Genz, CPA
(732) 919-1400
Stephen J. Bercovitch, JD
(212) 682-1600
Dale Ives, MBA
(908) 218-5002
Disclaimer by Amper, Politziner & Mattia PC: This publication is for informational purposes only and any tax advice in communication is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matter addressed herein. The foregoing legend has been affixed pursuant to U.S. Treasury Regulations governing tax practice).
All information provided is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. © Amper, Politziner & Mattia P.C. all rights.
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