New Jersey’s comptroller says thousands of homeowners received larger property tax credits than they should have, and now the state is endeavoring to recoup that inadvertent generosity.
Nearly 4,000 residents who owned only a portion of a multi-unit property claimed to occupy all of the building when applying for a Homestead tax credit, said acting controller Marc Larkins.
That resulted in their getting more credit than they were entitled to, and the state wants to get back about $1.6 million in overpayments.
“We’ve worked with the Division of Taxation to identify the blind spot, as we call it, in the program,” he said Thursday. “To date, they’ve sent out approximately 3,771 letters to taxpayers putting them on notice they’ll be seeking to recover those funds.”
Larkins is recommending a review of other tax reimbursement programs that could potentially save the state millions of dollars.
“Now whether that money goes back into this program or is used for other state needs is above and beyond our role,” he said. “But I think it is important that we limit these subsidies to those that truly deserve it.”
The Homestead Property Tax Credit program reduces taxes for elderly, disabled and low-income homeowners.