New Jersey § 54a:3a-16

§ 54a:3a-16.

As used in this act: “ Condominium ” means the form of real property ownership provided for under the “Condominium Act,”

P.L.1969, c. 257 ( C.46:8B-1 et seq. ). “ Continuing care retirement community ” means a residential facility primarily for retired persons where lodging and nursing,

medical or other health related services at the same or another location are provided

as continuing care to an individual pursuant to an agreement effective for the life

of the individual or for a period greater than one year, including mutually terminable

contracts, and in consideration of the payment of an entrance fee with or without

other periodic charges. “ Cooperative ” means a housing corporation or association which entitles the holder of a share

or membership interest thereof to possess and occupy for dwelling purposes a house,

apartment, manufactured or mobile home or other unit of housing owned or leased by

the corporation or association, or to lease or purchase a unit of housing constructed

or to be constructed by the corporation or association. “ Dwelling house ” means any residential property assessed as real property which consists of not more

than four units, of which not more than one may be used for commercial purposes, but

shall not include a unit in a condominium, cooperative, horizontal property regime

or mutual housing corporation. “ Homestead ” means: a. a dwelling house and the land on which that dwelling house is located which constitutes

the place of the taxpayer's domicile and is owned and used by the taxpayer as the

taxpayer's principal residence; b. a dwelling house situated on land owned by a person other than the taxpayer which

constitutes the place of the taxpayer's domicile and is owned and used by the taxpayer

as the taxpayer's principal residence; c. a condominium unit or a unit in a horizontal property regime or a continuing care

retirement community which constitutes the place of the taxpayer's domicile and is

owned and used by the taxpayer as the taxpayer's principal residence. In addition to the generally accepted meaning of owned or ownership, a homestead shall

be deemed to be owned by a person if that person is a tenant for life or a tenant

under a lease for 99 years or more, is entitled to and actually takes possession of

the homestead under an executory contract for the sale thereof or under an agreement

with a lending institution which holds title as security for a loan, or is a resident

of a continuing care retirement community pursuant to a contract for continuing care

for the life of that person which requires the resident to bear, separately from any

other charges, the proportionate share of property taxes attributable to the unit

that the resident occupies; d. a unit in a cooperative or mutual housing corporation which constitutes the place

of domicile of a residential shareholder or lessee therein, or of a lessee or shareholder

who is not a residential shareholder therein, which is used by the taxpayer as the

taxpayer's principal residence; and e. a unit of residential rental property, which unit constitutes the place of the

taxpayer's domicile and is used by the taxpayer as the taxpayer's principal residence. “ Horizontal property regime ” means the form of real property ownership provided for under the “Horizontal Property

Act,” P.L.1963, c. 168 ( C. 46:8A-1 et seq. ). “ Mutual housing corporation ” means a corporation not-for-profit, incorporated under the laws of this State on

a mutual or cooperative basis within the scope of section 607 of the Lanham Act (National

Defense Housing), Pub.L.849, 76th Congress ( 42 U.S.C.s.1521 et seq. ), as amended, which acquired a National Defense Housing Project pursuant to that

act. “ Principal residence ” means a homestead actually and continually occupied by a taxpayer as the taxpayer's

permanent residence, as distinguished from a vacation home, property owned and rented

or offered for rent by the taxpayer, and other secondary real property holdings. “ Property taxes ” means payments to municipalities for which an assessment by a municipality has been

made on an ad valorem basis on both land and improvements, and shall not include payments

made in lieu of taxes. “ Rent constituting property taxes ” means 18% of the rent paid by the taxpayer for occupancy during the taxable year

of a unit of residential rental property which the taxpayer occupies as a principal

residence; notwithstanding the definition of “property taxes” herein, rent constituting

property taxes includes the rent paid for the occupancy of a manufactured home installed

in a mobile home park. “ Residential rental property ” means: a. any building or structure or complex of buildings or structures in which dwelling

units are rented or leased or offered for rental or lease for residential purposes; b. a rooming house, hotel or motel, if the rooms constituting the homestead are equipped

with kitchen and bathroom facilities; and c. any building or structure or complex of buildings or structures constructed under

the following sections of the National Housing Act ( Pub.L. 73-479 ) as amended and supplemented: section 202, Housing Act of 1959 ( Pub.L. 86-372 ) and as subsequently amended, section 231, Housing Act of 1959. “ Residential shareholder in a cooperative or mutual housing corporation ” means a tenant or holder of a membership interest in that cooperative or corporation,

whose residential unit therein constitutes the tenant's or holder's domicile and principal

residence, and who may deduct real property taxes for purposes of federal income tax

pursuant to section 216 of the federal Internal Revenue Code of 1986 , 26 U.S.C.s.216 .