Friday, August 15, 2008

PARDON WHILE I VENT

The original deadline for senior and disabled homeowners to file the NJ Homestead Rebate and Property Tax Reimbursement (aka “Senior Freeze” – Form PTR-1 or PTR-2) applications was June 2, 2008.

The deadline for these forms was then extended to August 15, 2008, which was the deadline for non-senior and non-disabled homeowners to file the NJ Homestead Rebate application.

Today is August 15, 2008. But if you have not yet submitted your NJ Homestead Rebate (for all NJ homeowners) or Property Tax Reimbursement applications you still have time to do so – the deadline for filing these applications has again been extended to October 31, 2008, I expect the final deadline date.

The exact same scenario happened last year and the year before! Every year an early filing deadline is initially published, but the deadlines are eventually all extended to October 31st.

What a waste of government money (nothing new for New Jersey)! If you know full well that the deadline for these forms will eventually be extended to October 31st why not just make the original deadline October 31st!?! This way the State does not have to waste money issuing press releases and similar notices to announce the deadline extensions.

Here is an even better idea-

The NJ Homestead Rebate application for tenants is included as part of the filing of the annual NJ-1040 – it is Form TR-1040. This is due on April 15th or, if the return is extended, as late as October 15th. The filing deadline for the actual Form TR-1040, if filed by itself and not part of the NJ-1040 filing, is October 31st.

The NJ Homestead Rebate application for homeowners used to be included as part of the annual NJ-1040 filing – on the same form as the tenant application. There is absolutely no reason whatsoever why the homeowner’s rebate application cannot again be included in a rebate application form that is part of the annual NJ-1040 filing! There is also no reason why the Property Tax Reimbursement cannot be included on the same form as the rebate as part of the NJ-1040 filing.

Let me quote from a post I wrote for the NJ TAX PRACTICE BLOG back in December of 2005 –

For the life of me I cannot understand why the ‘geniuses’ in Trenton insist on having homeowners file their application later in the year, separate from the NJ-1040 filing. When the NJ Homestead Rebate was the only rebate offered both tenants and homeowners would apply for it on a Form HR-1040. Now that there is once again only one property tax rebate, why can't we go back to the HR-1040 filing process?

It would be much, much more convenient and practical for taxpayers and tax preparers alike to have all New Jersey taxpayers apply for the NJ {Homestead} Rebate with the filing of the NJ-1040. I know I would much rather take care of everything at the same time, instead of having to deal with homeowner client inquires about the rebate 3 to 6 months after the end of the tax filing season. I expect that it would be more convenient and practical for the NJ Division of Taxation as well to have everything done in one filing.

The separate filing for homeowners especially affects senior citizen homeowners, many of whom are confused by the process and, I suspect, as a result do not file for the rebate. This defeats one of the major purposes of the rebate - tax relief for senior citizens.

I have written to Robert Thompson and John Tully asking them to explain the logic behind the separate applications. If I receive a response I will post it here. What are your thoughts on this issue?

There is no word on when the Property Tax Reimbursement application packages (PTR-1 and PTR-2) will be mailed out, but the website indicates that the applications must be filed on or before June 1, 2006. However, as has been the case in the past, I anticipate that this deadline will be extended several times. Actually, there is no reason why this application cannot also be part of the NJ-1040 filing
.”

I did receive a response from the NJ Division of Taxation. I was told, “The property ownership records and assessed values of the properties are complied annually by each municipality and are not available to the Division of Taxation until sometime in March of the following year, long after the tax season has begun. Therefore, the rebate application cannot be included as part of the income tax return."

As I said in a January 2006 post to NJTPB reporting the NJDOT response, “What does the fact that the NJDOT cannot access verification information until March have to do with anything? The NJ rebate checks are not sent out until August - this gives the Division plenty of time to do whatever verification necessary to process the rebate!

My above comments still apply today –

* It would appear to be more convenient and practical, not to mention much cheaper, for the State of New Jersey to have everything done in one filing – there would be no need for separate mailings of the PTR-1 or PTR-2 forms or the rebate application for homeowners, just a few extra pages added to the NJ-1040 instruction booklet.

* It would be much, much more convenient and practical for taxpayers and tax preparers alike to have all New Jersey taxpayers apply for the NJ Homestead Rebate, and the Property Tax Reimbursement, with the filing of the NJ-1040. To repeat what I said above – “I would much rather take care of everything at the same time, instead of having to deal with homeowner client inquires about the rebate 3 to 6 months after the end of the tax filing season.”

But, of course, the State of New Jersey, and particularly the NJ Division of Taxation, is not used to doing things that are convenient and practical for the NJ taxpayer. And I am sure some NJ politician’s relative has a fat contract for printing the various applications.

Thanks for letting me “vent”!

TTFN

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