2005 Tax Information FAIR Rebate and Property Tax Deduction/Credit

Homeowners and tenants who are domiciled in the state of New Jersey may be eligible for the New Jersey FAIR rebate if property tax is paid on their principal residence either directly or through rent, and provided their gross income does not exceed the specified limit. Therefore if you live in one of the following University housing units (on which the University pays property taxes) and you satisfy the other requirements explained below, you may be entitled to the FAIR Rebate, and/or a property tax deduction or credit.

HOUSING UNITS WHICH QUALIFY

Butler
Lawrence
Hibben-Magie
Millstone Apartments
132-134 Alexander
138-140 Alexander
144 Alexander
27 Edwards Place
29 Edwards Place

If you do not live in one of these housing areas   here.  You are not eligible for the rebate, deduction or credit.

You can apply for the rebate by completing Form TR-1040, (TR-1040 is page 4 of Form NJ-1040), or you can apply for the FAIR rebate using NJ TeleFile.  NOTE: If you owned the home that was your principal residence in New Jersey on October 1, 2005, do not complete Form TR-1040 to apply for the FAIR rebate. Applications are expected to be mailed to homeowners separately at the end of April.

Qualifications
You are eligible for a New Jersey homestead rebate if you meet the following requirements:

• New Jersey Domicile -- Your domicile is New Jersey and you maintain a principal residence as a homeowner or tenant in New Jersey during the year;
• Gross Income -- If you are under 65 and not blind or disabled, your income is $100,000 or less;
• Property Tax Paid on Dwelling -- Your principal residence, whether owned or rented, is subject to local property taxes (see above list);
• Full Living Unit -- Your principal residence is a full living unit with its own separate kitchen and bathroom facilities; and
• File Rebate Application/Income Tax Return -- you file by April 15.

Rebate Only Filers If you are not required to file a New Jersey income tax return, you need only complete Form TR-1040 to apply for a homestead rebate.

Part-year residents who own or rent their principal residence in New Jersey for part of the year are eligible for a homestead rebate if they meet the qualifications.

Definitions

Domicile means the place you regard as your permanent home — the place you intend to return to after a period of absence (as on vacation abroad, business assignment, educational leave, etc.).

You have only one domicile, although you may have more than one place to live. Once established, your domicile continues until you move to a new location with the intent to establish your permanent home there and to abandon your New Jersey domicile. Moving to a new location, even for a long time, does not change your domicile if you intend to return to New Jersey.
Unless your domicile is New Jersey, you are not eligible for a homestead rebate, even if you own, occupy, and pay taxes on a property in this State.

Principal residence means a dwelling, either owned or rented, which you actually and continually occupy as your permanent residence. It must be a full living unit with its own separate kitchen and bathroom facilities.

Tenant means you are domiciled in New Jersey and rent a full living unit as your principal residence. A full living unit is one containing its own separate kitchen and bathroom facilities. Someone who rents a unit which only has access to a kitchen or bathroom is not eligible for a homestead rebate.

Property tax for tenants is considered to be 18% of the actual rent paid on your principal residence in New Jersey during the tax year.

The amount of Rebate for 2005 for tenants under 65 is $75.

If you meet the above criteria, you may also be entitled to take a property tax deduction or credit on your New Jersey tax return.