Base Period

• New Jersey calculates property tax reimbursements by comparing your current property tax to the amount of property tax you were required to pay the year you first became eligible for the property tax reimbursement program, which is called the base tax. To determine your reimbursement amount, subtract the base tax from your current tax. You cannot receive a reimbursement if your current tax is less than your base tax.
  
  

Overpayment

• If you receive a reimbursement larger than the reimbursement you are entitled to, New Jersey cannot give you any further property tax reimbursement until you repay the overpayment. If you are entitled to the reimbursement during the following year, New Jersey first subtracts the overpayment from your new reimbursement before providing any reimbursement.
  
  

Income Limits

• You can only receive a property tax reimbursement if you fall below income limits. As of July, 2011, New Jersey requires homeowners to make less than $70,000 per year to receive a property tax reimbursement. There is no pro-ration -- New Jersey does not allow you to get a partial reimbursement of any sort if you exceed the income limits. Both earned and unearned income are counted for income limitation purposes.
  
  

How to Apply

• If you qualify for a property tax reimbursement, fill out Form PTR-1 and attach your property tax bills as well as proof of income. You must also prove your age or disability status -- these reimbursements are only available for persons over the age of 65 or those currently receiving Social Security disability payments. If you do not have your property tax bill, you can get a verification of tax paid from your property tax collector.