N.J. Admin. Code § 5:33-3.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 5:33-3.2 - Definitions

The following words and terms used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise:

"Act" means the Tenants' Property Tax Rebate Act, 54:4-6.2 et seq.

"Amount to be rebated" means the total of the property tax reduction plus any property tax credit applied to the property through the Regional Efficiency Aid Program or through a local miscellaneous revenue credit.

"Assessment reduction" means a decrease in the amount of assessed value of qualified real rental property resulting from:

1. An agreement between an owner of qualified property and a municipal taxing authority;

2. An abatement, exemption, or change in assessment imposed administratively by a municipal tax assessor or county board of taxation; or

3. A judgment entered by a county board of taxation, the tax court, or another court of competent jurisdiction.

"Base year" means calendar year 1998. If any of the following events occur, "base year" shall then mean:

1. Any calendar year after 1998 in which property taxes levied for qualified real rental property exceed the property taxes levied for 1998 for that property;

2. The first calendar year after 1998 during which qualified real rental property is first offered for rent or lease;

3. The first full calendar year after 1998 in which qualified real rental property is no longer subject to a tax exemption or tax abatement program;

4. A calendar year subsequent to 1998 for which the property tax calculation reflects an assessment reduction from the prior base year assessment; or

5. A calendar year subsequent to 1998 in which the property taxes paid in the base year and the property taxes paid in the current year do not reflect consistent budgetary and tax item components because sewer, solid waste or similar services provided through a taxing entity budget and reflected in the tax rate are changed to a separately billed user fee.

"Current year" means the calendar year in which a property tax reduction is realized and rebates are calculated.

"Director" means the Director of the Division of Local Government Services in the Department of Community Affairs.

"Local agency" or "local enforcement agency" means the municipal rent leveling board, where one exists, or the tax collector where one does not.

"Local miscellaneous revenue credit" means a property tax reduction provided through a property tax credit applied to a property tax bill pursuant to 40A:4-27.3.

"MOD IV" means the New Jersey Property Tax System administered by the State Division of Taxation. It is mandated for use by every municipal assessor, authorized for use by private data centers serving municipalities, and designed for use by tax collectors in preparing tax bills and Notices of Tax Reduction.

"Notice of Tax Reduction," "Tax Reduction Notice," or "Notice" means the document tax collectors send to owners whose taxes in the current year are lower than those in the base year, or who have received a Regional Efficiency Aid Program property tax credit, or where the municipality has provided a local miscellaneous revenue credit. It includes the base year and current tax and the property tax reduction amount as computed by the MOD IV system, any REAP property tax credit, any local miscellaneous revenue credit, a plain language summary of the law and rules, and an owner's rent rebate certificate.

"Owner" means a person who owns qualified property.

"Property tax reduction" means the difference, between property taxes paid or payable on any qualified property in the base year, and the lower taxes paid or payable in the current year, except that such calculation shall be exclusive of any property tax credit applied to the property through the Regional Efficiency Aid Program or through a local miscellaneous revenue credit.

"Qualified property" or "qualified real rental property" means any building or structure, or complex of buildings and structures, in which five or more housing units are rented or leased or offered for rent or lease for residential purposes, except:

1. Hotels, motels, and other guesthouses serving transient or seasonal guests;

2. Buildings or structures which are subject to an abatement agreement under which reduced or no property taxes are paid on the improvements pursuant to statute, notwithstanding that payments in lieu of taxes are paid in accordance with the agreement;

3. Buildings or structures located in municipalities in which a rent control ordinance that:

i. Does not provide for an automatic increase in the amount of rent permitted to be charged by a property owner upon an increase in the amount of property tax levied upon the property is in effect for the base year and the current year; or

ii. Provides for both an automatic increase and decrease in the amount of rent permitted to be charged by a property owner upon a change in the amount of the total property tax levied on a parcel, which total shall include the effect of any local miscellaneous revenue credit or REAP credit;

4. Dwelling units in a residential cooperative or mutual housing corporation;

5. Dwelling units in a condominium, other than those occupied by qualified tenants under the "Tenant Protection Act of 1992," P.L. 1991, c.509 (2A:18-61.4 0 et seq.);

6. Dwelling units in a continuing care retirement community; and

7. Dwelling units within residential health care facilities, assisted living facilities, facilities with a Class C license pursuant to the Rooming and Boarding House Act of 1979, P.L. 1979, c.496 (55:13B-1 et seq.), or similar facilities for which occupancy is conditioned on receipt of medical, nursing or personal care services for the residents and the cost thereof is included in the rent.

"Regional Efficiency Aid Program" or "REAP" means the Regional Efficiency Aid Program, N.J.S.A. 54:4-8.7 6 et seq.

"Rent rebate certificate" means an owner's written assurance to a local agency of rebates to be made to tenants. It includes certification that the owner has posted notice of the rebates prominently for inspection by tenants or has otherwise notified them, and that the owner has started making the rebates and will complete them.

"Tax bills" means the property tax bills mailed by the tax collector that include, at a minimum, the third installment of taxes for the calendar year; however, if the bill for the third installment is an estimated bill issued pursuant to 54:4-66.2 et seq., it shall mean the tax bill for the fourth installment.

"Tenant rebate" means a deduction from rent equal to an owner's tax reduction divided among tenants according to the rent they pay. It may be made as a credit against rent payable or as a refund of rent paid, at the option of the owner.

"Transient" means individuals whose residence at a rooming or boarding house is on a temporary basis for a period lasting no more than 90 days.

N.J. Admin. Code § 5:33-3.2

Amended by R.2003 d.35, effective 1/21/2003.
See: 34 New Jersey Register 2379(a), 35 New Jersey Register 398(a).
Rewrote "Amount to be rebated", "Notice of Tax Reduction", "Property tax reduction" and "Qualified property"; added "Local miscellaneous revenue credit".