New NJ Property Tax Relief Plan Extended: What To Know

NEW JERSEY - Less than 24 hours after his 2024 budget address, Governor Phil Murphy was out touting his $2 billion property tax relief plan.

Murphy says his $53.1 billion budget proposal for 2024 is designed to make living in New Jersey more affordable for millions of residents. Among the inclusions in the next budget is a renewal of the Affordable New Jersey Communities for Homeowners and Renters program, or ANCHOR.

The Democrat unveiled his proposed spending plan on Tuesday during a joint session of the Legislature, promising more school aid, a renewal of a property-tax rebate, and billions more dollars injected into the state’s public pension plan. Related article — Tax Relief, Debt Service, Transit Fare Freeze: 3 NJ Budget Takeaways

Murphy said about 1.7 million households will receive a property tax rebate in the first year of ANCHOR, with rebate checks expected to roll out later this month.

His proposed budget for 2024 included $2 billion to repeat the program, which offers up to $1,500 to homeowners and renters under a certain income threshold.

“By any measure this is real relief,” Murphy said Wednesday as he appeared with State Treasurer Elizabeth Maher Muoio and several legislators to tout the program. He did not say exactly how much money is being paid out to those who have applied.

Murphy said the state would redouble efforts to educate New Jerseyans about the program and “make sure no one leads ANCHOR relief on the table.”

Earlier this week, the New Jersey Department of Community Affairs (NJDCA) published its latest tax tables, which are based on 2022 data. Statewide, the average property valued at $351,702 paid $9,490 in taxes last year – up nearly 2.22 percent from the previous year. Related article — Highest NJ Property Taxes: See Where Your Town Ranks On New List

Murphy said these recent statistics about property taxes going up do not take the ANCHOR and Senior Freeze programs into account. On average with these rebates, tax payments will go back to the 2013 year, he said.

The governor’s proposal must first progress through the Legislature, which can alter it before Murphy signs it into law. All 120 state lawmakers are on the ballot this November.

Click here to view a brief version of the governor’s proposed budget.

Here are some of the proposals in the budget affecting seniors, students, homeowners, and families:

Continuation of the ANCHOR program, which set aside $2 billion for homeowners and renters to get a rebate on their property tax bill.

The deadline for this first year of the property-tax rebate was Tuesday. Murphy said 1.7 million people will get a rebate this year, despite reported problems with getting a customer service representative on the line. For the first year of the program, residents had to include their 2019 information; there are no details yet on which year will be included in the program renewal.

Under this program, homeowners with a household income of less than $150,000 can get a $1,500 rebate, homeowners with a household income between $150,000 and $250,000 can receive $1,000, and renters with incomes up to $150,000 will receive $450 each. The average benefit is $971 for each eligible resident, state officials said.

Proposed doubling of the Child Tax Credit, delivering up to $1,000 per child for families with small children.

Currently, parents making under $30,000 annual household income can get up to $500 for every dependent child aged 5 and younger who is claimed on their tax forms.

The proposed increase would give working and middle-class families a bigger tax break, said Murphy.

Expand the Senior Freeze property tax reimbursement program with incomes up to $150,000.

This program reimburses eligible senior citizens and disabled people for any property tax or mobile home park site fee increases on their principal residence; the income limit was $100,000 last year. The governor’s office says this is expected to bring more than 50,000 households into the program who would have otherwise been ineligible.

Increasing eligibility for the state’s senior prescription drug and hearing aid programs.

Spending $134 million on the governor’s College Promise programs, Community College Opportunity Grant and the Garden State Guarantee.

The budget proposal increases eligibility for both programs, so that students with family incomes up to $100,000 can benefit. The governor’s budget also increases the value of Tuition Aid Grants for more than 20,000 students, and expands the Some College, No Degree program to help students complete college.

Renewing $50 million funding for the Main Street Recovery Program.

An additional $15 million in enhanced benefits for first-generation homebuyers.

Continuing funding to ensure health care benefits to low-income residents and children.

The budget provides more than $5.8 billion in state funding for the NJ FamilyCare program and Workability programs, which provide benefits to low-income and disabled New Jerseyans. It also adds $14 million in funding to the Cover All Kids initiative.

Launching a pilot initiative to cancel New Jersey residents’ medical debt.

Not much more is included about this program; Murphy’s office said other jurisdictions who have launched similar programs “have seen as much as $100 or more of medical debt erased for each public dollar expended.”

A one year, $86.75-million program to support those working in home- and community-based services for people with disabilities.

Murphy’s office said this initiative will include a package of recruitment and retention payment and student loan redemption.