2011 Property Tax Rebate (loans, homes, schools)

[NJGOAT]

Originally Posted by Ann77

Well, the mortgage company should get the revised tax bill and adjust the mortgage and tax payment accordingly.

I don't think the escrow will change though. That might sit in there until the loan is paid off unless they specifically ask for a refund of some of it.

Why don't your parents just pay the taxes directly at this point? If their house is almost paid off, they don't need to do the escrow thing anymore. Ask the mortgage company for the escrow back and pay their own quarterly taxes to their town. Call the town and get the bill sent directly to their home.

I can see if your mortgage requires you to pay the taxes through escrow, but if it doesn't, I don't know why people do it. We've always managed our own payments for taxes. Even when mortgage companies want it, we just say no and they have always let us.

I've suggested to them that they should just pay the taxes themselves, but they like it to be in escrow as it's "one less thing to worry about". My parents are the type who used to make every nickle count for so many years that even though they are quite well off for retirement between their pensions, social security and investments, they still hold to "what works for them". Heck, my dad still works a part time job helping out at the local high school with sporting events so he can justify the expense of the premium channels on FIOS...I'm not kidding.

However, my parents situation aside which is what got me started on this, I am really wondering exactly how people are realizing this credit and what would happen if it got pulled or they no longer qualified and everything was running through escrow.

Although, I'm not 100% for this type of "relief", I think the current solution is better than just mailing people a check, even if the mechanics are rather confusing.

[Ann77]

Originally Posted by NJGOAT

However, my parents situation aside which is what got me started on this, I am really wondering exactly how people are realizing this credit and what would happen if it got pulled or they no longer qualified and everything was running through escrow.

Although, I'm not 100% for this type of "relief", I think the current solution is better than just mailing people a check, even if the mechanics are rather confusing.

I agree, it sounds confusing. Are the towns going to have to adjust each homeowner's tax bill individually, or is it going to be a flat number?

[NJGOAT]

Originally Posted by Ann77

I agree, it sounds confusing. Are the towns going to have to adjust each homeowner's tax bill individually, or is it going to be a flat number?

It would have to be individual as it is based on eligibility requirements which are in part driven by income. For instance, folks making between $50k-$75k get one amount, while those making under $50k get another and elderly/disabled get yet another rate. Then the refund amounts are somehow tied to what your property tax rate was in the basis year and that would vary by each individual as well.

[mumra]

click here for more info: NJ Division of Taxation -

[NJGOAT]

Originally Posted by mumra

click here for more info: NJ Division of Taxation -

I had seen this page before and it is useful for calculating the benefit amount, but still doesn't address dispersal.

FWIW, I was at my accountants last night and asked him how it was working and he told me that no one really knows. He attended a seminar on it and the state had very few answers.

Basically all the state is saying is that they are issuing the credit in May 2011 to the municipalities to be applied to 2nd Quarter taxes. What they don't say/know is how the distribution will work. For instance, is it a lump sum one time offset, or will the credits be spread over subsequent quarters? He said, the state folks simply stated that the state was issuing the credit in May 2011, how it is handled from there may be up to the municipality. In terms of how a mortgage company would handle it with escrow, the state didn't seem to have an answer for that either.

So, all the state knows is that they are issuing credits to the municipalities on peoples behalf. What happens from there is anyones guess and seems to be up to the municipality in terms of the dispersement and up to the mortgage company in terms of escrow.

My accountants opinion was that the whole thing seemed to be rather poorly conceived.

[taurus430]

Originally Posted by Ann77

You don't have to change anything, it will be on your property tax bill. There already is a box like this already that says "State Aid Offsetting Your Taxes" or something. I guess this will be something additional.

I, like others have posted, don't see anything on my tax bill yet and was also wondering how and when this will be dispersed. I am eligible for this.

[cooljoe51]

When I spoke with my Tax Assessor's office they told me they weren't sure as of what would happen yet either. I believe though that what will happen is if you have a mortgage where you do pay escrows, you will receive a refund from your tax office. Probably about a year later for the overages. The only reason i say this is because I had my taxes re-assessed and dropped down about 1500. My mortgage company for the past two years has still been unable to get it through their heads and has been charging me the overage. My local tax office sent me a letter stating I had this much in extra and asked me what I would like to do with it. Obviously I took the money. But that overage was from about a year ago. Just my two cents.

[Jellybean50]

OK - i received a re-calculated bill from my local tax agency for the May 2011 quarter (as i said, my house is paid off).

It tells me the amount taken off for the Tax Rebate, and my new amount due for that quarter.

My question is, is that the rebate for the year - or will more be taken off for other quarters? Seems like no one really understands, or can give me a solid answer. One of the reasons i want to move is becuz i cant afford my taxes - this would help a lot. Also, will this be coming every year now?

Thanks for any help!

(edited to add: according to the website - it looks like that amount for that quarter is only ONCE a yr, not so great, oh well)

[Silverangel]

I was told it will be a credit toward our second quarter taxes also, but like many others I pay my taxes through escrow with my mortgage company. Which left me with the thought that I will NEVER see that money!! I will be surprised if the mortgage co. sends me a check, unless they credit the amount to a loan payment!?! guess I wait and see...

[JERSEY MAN]

You can kiss this rebate goodbye. The state has to come up with a billion dollars more for the schools. My guess, no more rebate.