31 May What happens to the Homestead Rebate after a move?

Q. I recently moved. What do I do if my tax bill shows credit for a Homestead Rebate that the previous owner filed for in 2018? The previous owner is now deceased. Additionally, I filed for the Homestead Rebate every year for my previous residence. Given that the state pays so many years later, what are my options to benefit from rebates between the years of 2019 and 2021 if I no longer own that home?
— Homeowner

A. Congratulations on your move.

You’re correct that the Homestead Rebate can be confusing because it covers past years.

The benefit gives property tax relief to eligible homeowners in the form of a credit that is paid to your municipality, said Claudia Mott, a certified financial planner with Epona Financial Solutions in Basking Ridge.

“In the event a resident has moved or resides in a co-op or continuing care community, a check or direct deposit is issued,” she said, noting that the most recent application year is for 2018 and applications were due by Nov. 30, 2021.

To be eligible for the most recent filing, you must have been a New Jersey resident who owned and occupied the home as a principal residence on Oct. 1, 2018, Mott said. In addition, the 2018 property taxes must have been paid and gross income must be below $75,000 for homeowners under age 65 or less than $150,000 if over 65, blind or disabled.

According to the “How Benefits are Paid” section of the Homestead Benefit Program website, the benefit paid is tied to the property, not the owner.

When someone moves, they should answer “No” to question 7 on a paper application, which asks whether you still own the property.

“In that situation, a check or direct deposit should be issued to you directly,” Mott said. “This should prevent the new owners of your previous residence from receiving a benefit from applications you file.”

If you didn’t indicate “No” on the question, you should seek a credit from the buyer for the amount of the Homestead Rebate, she said. This negotiation would need to occur during the purchase process and may require involving the realtor or a real estate attorney.

You can always try to contact the estate of the previous owner if you want to give them the benefit received from their application.

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This story was originally published on May 31, 2022.

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