Flawed Rebates hurt NJ

[SAdams]

Imagine this, in the State of Sainthood, New Jokesey, that someone is frauding the system to help out those who need help. Just like Family Kid Care and the dolts on there making $300,000 with one child. Is that mismanagement or what?

That's right, take away from those who need it and provide to those who don't need it to make their lives easier. Boy you liberal wheenies really missed the mark.

And people yelling about subsidizing? Nice to know there are those who would rip off a senior so they could protect a player and his "vacation" home or make sure the player gets an extra round of golf in. Or even make sure this money gets to the Democratic Re-election Committee. You know, like the school surplus that I spoke to you about in the past.

Society at it's finest! GREED!



Audit: Flawed rebates hurt N.J.

By BETH DeFALCO • Associated Press • February 13, 2010

TRENTON — Lax oversight, confusing rules and potential fraud have combined to cost New Jersey millions each year in rebates and tax deductions given to homeowners who may not qualify for them, according to a recently released state audit.

If not corrected, the state could stand to lose more money as residents age and property taxes go up.

At an average of $7,000 a year and rising, New Jersey has the highest property taxes in the nation. It's a serious problem for many homeowners and an even worse one for those on fixed incomes.

For years the state has offered rebate programs and tax breaks to seniors and disabled homeowners in the form of checks that are usually mailed out in the fall -- just in time for November elections.

But a new report by the state auditor found that the Division of Taxation, which oversees the programs, and municipalities failed to cross-check records or demand proof from homeowners to make sure they qualify for the programs.

In 2007, the year examined by the auditor, the two programs paid out more than a quarter billion dollars.

"We're kind of taking people at their word," said Acting State Auditor Stephen Eells, "and there are improper payments going out."

Known as "senior freeze" rebates, the program allows low-income senior and disabled citizens to be directly reimbursed by the state for property tax increases above the rate they lock into when they enroll in the program.

To qualify for the rebates in 2007, a homeowner had to make less than $60,000 and needed to be 65 or older or receiving federal disability benefits. Lawmakers have since expanded the program to include homeowners making up to $80,000.

Homeowners must submit a copy of a driver's license or birth certificate to verify their age and disabled homeowners must provide proof that they receive disability benefits.

Before 2002, the state didn't ask for those verifications and the audit found that the homeowners who qualified for the program before 2002 were never asked to provide such proof after the law changed.

In 2007, the average "freeze" rebate checks averaged $958, according to the Treasury Department. That year, 154,600 senior and disabled homeowners received "senior freeze" rebates totaling $165 million.

A random sample found that 6,000 homeowners who received the rebates were younger than 65, according to federal records. Of those, 405 receiving $318,000 in rebates weren't receiving Social Security benefits, indicating that they weren't as old as they claimed.

The audit also found sloppy accounting; some homeowners who claimed disabilities were listed instead as over 65. And it found that many -- nearly 1,250 homeowners who received a total of $1.3 million in rebates -- claimed they made less than $60,000 a year while a cross-check against federal tax forms showed they made too much to qualify.