N.J. DCA Landlord/Tenant Information Series — (English)

Citation
N.J. DCA Landlord/Tenant Information Series — (English)
Jurisdiction
New Jersey (state)
Source
Official source
Original Source
https://www.nj.gov/dca/codes/publications/pdf_lti/t_i_r.pdf ↗

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Property Tax Rebate for Tenants
The Tenants’ Property Tax Rebate Act (N.J.S.A. 54:4-6.2 to – 6.13; N.J.A.C. 5:33-3.1 et
seq.), as amended in 1998, may require owners of properties with five (5) or more rental units to
pass on to their tenants as a rent credit or cash rebate, the full amount of any current property tax
reduction. Reductions are calculated by comparing the current year’s taxes with a previous year
(beginning with 1998) that shows a larger tax amount. The difference is the amount to be rebated
to tenants. Municipalities with rent control ordinances that do not permit landlords to pass tax
increases along to tenants are not subject to the law. The law also contains exceptions for certain
types of rental properties. See N.J.S.A. 54:4-6.3 for the list of the types of properties that are
exempt.
In each municipality, where a rebate is due, a notice of property tax reduction (N.J.S.A.
54:4-6.7) is sent from the local tax collector to the building owners within 30 days after tax bills
are issued to the building owner. Generally, rebates are to be distributed in monthly installments
at rent payment dates, beginning within 30 days after receipt of Notice of Tax Reduction. The first
rebate is to be cumulative from January and all are to be completed by December 31. However, if
the notice is received after November 1, the rebate is to be completed by June 30 of the following
year.
Under the law, in eligible municipalities, a property rebate is due to tenants only when
property taxes are reduced because of: 1) a municipal wide revaluation of all real estate and only
in the first year the revaluation takes effect, 2) generally, when the property tax rate in the current
year is lower than the base year (usually 1998), 3) taxpayers in the municipality receive tax