New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 14 - SENIOR CITIZENS', DISABLED PERSONS', SURVIVING SPOUSES'/CIVIL UNION PARTNERS' DEDUCTION
Subchapter 1 - DEFINITIONS
Section 18:14-1.1 - Words and phrases defined
The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:
"Act" refers to the Senior Citizens', Disabled Persons', Surviving Spouses'/Civil Union Partners' Deduction authorized by N.J.S.A. 54:4-8.40 et seq.
"Annual income limit" shall be: $ 10,000 for the year 1983 and each year thereafter, exclusive of certain income as identified by constitutional provision, statute, or administrative regulation. There are certain categories of income that are to be excluded from income for eligibility purposes, such as those set forth in Article VIII, section 1, paragraph 4 of the New Jersey Constitution and N.J.S.A. 54:4-8.41.
"Blindness" means central visual acuity of 20/200 or less in the better eye with the use of a correcting lens. An eye, which is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees, shall be considered as having a central visual acuity of 20/200 or less.
"Business income" means gross income derived from a business, trade, profession, or from the rental of property after deductions of the ordinary and necessary expenses attributable to the business, trade, profession, or from the property's rental, as allowed under the Federal Internal Revenue Code and regulations.
"Citizen and resident of this State" means a person who on October 1 of the pre-tax year is a permanent resident or domiciliary of New Jersey and who has been such for a period of not less than one year immediately preceding October 1 of the pre-tax year. Such person need not hold United States' citizenship in order to be eligible for the deduction.
"Civil Union Partner" means a person who has established a civil union pursuant to N.J.S.A. 37:1-30.
"Cooperative" means a housing corporation or association incorporated or organized under the laws of New Jersey, which entitles its shareholders to possess and occupy for dwelling purposes a house, apartment, or other structure owned or leased by the corporation or association.
"Director" means the Director of the Division of Taxation, Department of the Treasury, State of New Jersey.
"Dwelling house" means the dwelling where claimant makes his or her principal and permanent home. Where a claimant resides in housing, which is his or her principal place of residence and occupies a seasonal home in New Jersey during the summer months or other seasonal duration, the seasonal home cannot be considered a dwelling house upon which claimant receives this deduction. If a claimant owns, but occupies only a portion of, a property, the tax deduction is applied to the taxes due from that portion of the property that he or she occupies as his or her dwelling house.
"Federal Internal Revenue Code income definition--when applicable" means that, except as otherwise indicated, the definition of income under the Federal Internal Revenue Code and regulations shall apply to compute the annual income and anticipated income to determine whether the claimant qualifies for the deduction in the tax year for which the deduction is claimed.
"Income" means that the claimant's anticipated income from all sources for the tax year for which the deduction is claimed will not exceed the applicable annual income limit, exclusive of Social Security benefits; benefits received under the Federal Railroad Retirement Act and other Federal pension, disability, and retirement programs; or pension, disability, or retirement programs of any state or its political subdivisions, or agencies thereof, for persons not covered under the Federal Social Security Act. Income shall include, but not be limited to, salaries, wages, bonuses, commissions, tips, and other compensations before payroll deductions, all dividends, interest, realized capital gains, royalties, income from rents, business income, and, in their entirety, pension, annuity, and retirement benefits. Realized capital gains, except for capital gain resulting from the sale or exchange of real property owned and used by the taxpayer as his or her principal residence, and on which he or she received a deduction allowed by this Act, and dividends, interest, pensions, annuities, and retirement benefits must be included in full without deductions even though they may be wholly or partially exempt for Federal income tax purposes.
1. Examples of what constitutes income can be found in the revised guidelines for real property tax deduction for senior citizens, disabled persons, and surviving spouses/civil union partners available on the Local Property Tax Reference Materials page on the Division of Taxation's website: http://www.nj.gov/treasury/taxation/lpt/referencematerials.shtml.
2. Excludable Income. Pursuant to Article VIII, section 1, paragraph 4 of the New Jersey Constitution and N.J.S.A. 54:4-8.41, applicants may exclude benefits under only one of the following three categories:
i. The Federal Social Security Act and all its amendments and supplements;
ii. Any other Federal government program, or pursuant to any other Federal law, which provides benefits in whole or in part instead of benefits referred to in, or for persons excluded from coverage under the Federal Social Security Act, including, but not limited to, the Federal Railroad Retirement Act and Federal pension, disability, and retirement programs; or
iii. Pension, disability, or retirement programs of any state or its political subdivisions, or agencies thereof, for persons not covered under, the Federal Social Security Act, provided that the total amount of benefits to be excluded by any owner under items i or ii above shall not be in excess of the maximum amount of benefits payable to, and allowable for exclusion by, an owner in similar circumstances under i above.
3. Where claimant and spouse/civil union partners are receiving pension, disability, or retirement benefits, the combined benefits received by the spouses/partners may be excluded, subject to the maximum limits provided by law.
4. Income received by the claimant and spouse/civil union partner is combined to determine the claimant's annual income and anticipated income amount, unless they are living apart in a state of separation as of October 1 of the pre-tax year.
5. Income of members of a claimant's family, other than his or her spouse/civil union partner, shall not be combined with the income of the claimant when determining annual income limit.
"Mutual housing corporation" means a not for profit corporation incorporated under the laws of New Jersey on a mutual or cooperative basis within the scope of section 607 of the "National Defense Housing Act," Pub. L. 76-849 ( 42 U.S.C. §§ 1521 et seq.), which acquired a National Defense Housing Project authority.
"Owned" means ownership of an estate in fee, life estate, or ownership of qualifying shares in a cooperative or mutual housing corporation, individually or as joint tenants, tenants in common, or tenants by the entirety. Ownership extends to property where title is held by a partnership to the extent of the claimant's interest as a partner therein, and by a guardian, trustee, committee, conservator, or other fiduciary for any person who would otherwise be eligible to claim the deduction. Ownership shall not include an estate for a term of years, a leasehold estate, an estate of less than a fee interest, or where property title is held by a corporation other than a mutual housing corporation as stated above.
"Permanently and totally disabled" means total and permanent inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment, including blindness.
"Post-tax year" means the calendar year immediately following the "tax year."
" Pre-tax year" means the calendar year immediately preceding the "tax year."
"Property tax deduction amount" shall not exceed: $ 250.00 in the year 1983 and in each year thereafter.
"PTD" means property tax deduction.
"Real property tax deduction" means the deduction for senior citizen's or for permanently and totally disabled persons and their surviving spouses/civil union partners in certain cases against the real property taxes payable by such persons if they were not eligible for the deduction.
"Resident" means one legally domiciled within the State of New Jersey for a period of one year immediately preceding October 1 of the pre-tax year. Seasonal or temporary residence within the State, of whatever duration, shall not constitute domicile within the State for purposes of qualifying for the deduction. Absence from this State for a period of 12 months shall be prima facie evidence of abandonment of domicile in this State. The burden of establishing legal domicile within the State is upon the claimant.
"State of separation" means a permanent and indefinite period of separation and shall not mean temporary periods of separation, such as separate vacations, business trips, and hospitalizations.
"Surviving spouse/civil union partner" means the surviving spouse/civil union partner of the deceased citizen and resident of this State who during his or her life received a real property tax deduction pursuant to this Act, so long as he or she remains unmarried/not in a new civil union and a resident in the same dwelling house for which said deduction was granted. Said surviving spouse/civil union partner shall be eligible for the same deduction, upon the same conditions, with respect to the same real property, provided that he or she is 55 years of age or older at the time of the death of said citizen and resident deduction recipient.
"Tax year" means the calendar year in which the general property tax is due and payable.
"Tenancy by the entirety" means ownership of real property by both a husband and wife/civil union partners by virtue of title acquired by them jointly after marriage/entering into a civil union and is defined in N.J.S.A. 46:3-17.2.
