Audit: NJ Tax Rebate Program Gave $2.6 Million In Credits To Dead People
LEONIA, N.J. (CBSNewYork) -- In New Jersey, people no longer alive are receiving money from a tax rebate program, while those who should have gotten it didn't. So what happened?
As CBS2's Christine Sloan reported, homeowners in Bergen County fork over a lot of money in property taxes and they're shocked a state audit of New Jersey's Homestead Benefit Program found millions of dollars in rebates going out to the wrong taxpayers -- specifically more than $2 million to people who are dead.
"It's disgusting, what else is new?" said Donna Bernstein, of Fort Lee.
"It's disappointing, very disappointing," said another woman.
Officials said it happened because deceased individuals weren't removed from the state tax records in a timely manner.
"This is the most incompetent thing I have seen in many, many years of having covering the financial market. Only in New Jersey," said consumer expert Jordan Goodman. "The people actually paying these things out should have actually checked to see these people were actually alive."
Property taxes in New Jersey are the highest in the nation.
In a statement given to CBS2, the state Division of Taxation said in part "The Division will pursue recoupment of any ineligible payments."
The program is aimed at helping homeowners who made less than $75,000 in 2012, seniors and the disabled.
The audit found $10 million didn't go to thousands of taxpayers because they sold their homes after submitting their applications -- and didn't inform the program.
"In many cases, the homes were being sold, so it was going to the new buyer instead of the existing person paying the property taxes," said Goodman.
Goodman said the state could have a big fight on its hands as it tells those who didn't deserve the tax credits to give them back.
In the meantime, the state tax division said as of this year, it has the ability to identify dead taxpayers.
The division also said it's exploring the feasibility of requiring applicants to provide additional data when filing an application on the phone.