Short answer
File for the home you owned and occupied on October 1 of the application year, and say on the application if you moved or plan to. If you do not indicate a move, you may need to take credit for the Homestead Benefit at closing, or it goes to the new owner. Senior Freeze rules reset when you buy again.
Homestead Benefit and the October 1 rule
The Division of Taxation's guide says to file for the home that you owned and occupied on October 1 of the application year. If you moved after October 1 or plan to move from the residence for which you are filing, you must indicate this on the application or risk losing your benefit. When the move is properly indicated, a check or direct deposit is processed upon approval.
Credit at closing
If the application is filed and the move is not indicated, the guide says you need to take credit for the benefit at the closing of your property. If you, your attorney or the closing agent fail to negotiate the benefit at closing, the credit is applied to the property taxes of the new owners. So raise it with your closing attorney well before the settlement date.
Senior Freeze
The Senior Freeze, also called the Property Tax Reimbursement, has its own rules. The guide says that if you buy another home in New Jersey as your principal residence, you must re-establish yourself in the program for the new property, assuming you meet the other requirements. If you receive reimbursement in the year before moving, you wait two years to establish a new base year rather than the usual three. You then file form PTR-1-C, which you can request through the Property Tax Reimbursement Hotline at 1-800-882-6597.
Ownership on December 31
The guide also notes that you cannot file for the property if you did not own and occupy the home on December 31 of the application year. If you are selling late in the year, this affects whether you have a claim in the first place. Ask a tax professional, since these rules are specific to your dates, and the Division may update them after the guide was published.
A sale on your timeline
Programs like these are one reason sellers like a firm closing date. Kaizen Home Buyers makes cash offers on New Jersey houses as-is, with no repairs and no agent commission. We can give an offer within 24 hours and close in 14 to 30 days or on the date you choose. Call 267-329-0084. Listing with an agent is another approach. Whichever you choose, tell your closing attorney about any state property tax benefit before the closing.