Audit finds problems with New Jersey’s property tax credits

An audit finds 19,000 eligible applicants may not have received New Jersey’s property tax credit.

They missed out on $10 million because they sold their homes in the year and a half it took the state to issue the most recent Homestead Benefit. The audit found people who bought the homes received the credit even though they had not paid taxes for the property in 2012.

The application instructs homeowners to work out the credit with buyers during closing or make a note on the application to receive a rebate check instead.

NJ.com reports taxation acting director Dennis Shilling has now agreed to use sales data to determine if an applicant should receive a check instead of a credit.

Overall, the state paid $365 million in credits in May.