NJ's $2B Property Tax Rebate Program Opens: How To Get Paid

NEW JERSEY — It may take eight months to get your money, but state officials opened up filing options for New Jersey's new property tax rebate program.

Gov. Phil Murphy's administration began mailing out instructions to residents eligible for the ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) program. Taxpayers will be able to file online, through mail or via phone by Dec. 30.

Online filing is now available via the New Jersey Department of the Treasury's website. The telephone-based filing system is unavailable as of Tuesday morning, according to the treasury. Tenants filing for relief won't have the phone option.

The state will pay rebates via check or direct deposit "no later than May 2023 to allow time for application processing and validation." The treasury also has limits on the number of checks it can issue each week.

The average New Jersey property tax bill in New Jersey was $9,284 in 2021 — among the highest in the nation. Rough figures from the ANCHOR program average a $971 annual benefit for 2 million residents.

ANCHOR replaces the Homestead Rebate as New Jersey's main program for property tax relief. While Murphy has touted the new program as a key component to making New Jersey more affordable, Republican lawmakers have called it a gimmick that doesn't go far enough amid high taxes and inflation.

Here's what else to know:

1. How do I know if I'm eligible for the ANCHOR rebate?

Refer to your gross income from Tax Year 2019. Here's why: the Homestead Rebate program had a slight lag in the tax year for which taxpayers benefitted.

New Jersey residents can apply as homeowners if on Oct. 1, 2019, they:

• owned a house
• owned a condominium and paid property taxes on your unit
• were a resident shareholder of a cooperative housing complex
• were a resident of a continuing care retirement community and your continuing care contract requires you to pay the proportionate share of property taxes attributable to your unit

Homeowners don't qualify if their residence was completely exempt from paying property taxes or they made PILOT (Payments-in-Lieu-of-Tax) payments.

Unlike the Homestead Rebate, renters can qualify for the ANCHOR program. Taxpayers can qualify as tenants if on Oct. 1, 2019, they:

• rented an apartment, condominium or house
• rented or owned a mobile home located in a mobile home park

But people who lived in tax-exempt, subsidized or campus housing do not qualify.

The following income levels meet the criteria for a rebate:

• Homeowners with a household income of less than $150,000
• Homeowners with a household income between $150,000 and $250,000
• Renters with incomes up to $150,000

2. How much of a benefit can I receive?

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. Renters with incomes up to $150,000 will receive $450 each.

With about 2 million people impacted, ANCHOR rebate recipients will receive an average of $971 for this year.

3. How can I receive a paper application?

Eligible homeowners and rents will be able to apply either online, by phone or via mail — similar to the Homestead Rebate's process.

To receive a paper application, log in here using your Identification Number and PIN and print it. Or call the ANCHOR Hotline at 1-888-238-1233 to order one.

Taxpayers can mail it in or you have the option to upload a completed copy of your paper application using the state's electronic filing system. They will be able to attach supporting documents with the application.

Check here to see if you're required to file a paper application.

4. What will I need to file?

Taxpayers will need their assigned Identification Number and PIN of their principal residence (main home) that they owned or occupied on Oct. 1, 2019. Be prepared with the following:

• Valid taxpayer identification number and, if applicable, the taxpayer identification number of your spouse or civil union partner
• New Jersey Gross Income from Line 29 of your 2019 NJ-1040. (If you are not required to file an NJ-1040, report "0.")
• 2019 filing status
• Date of birth and, if applicable, your spouse's/civil union partner's date of birth

Filers will also get asked the following:

• You owned the property with someone who is not your spouse/CU partner. If yes, what percentage did you own?
• The property had more than one unit. If yes, what percentage of the property did you use as your main home?

5. Where can I find more info?

Visit the ANCHOR webpage, or call the ANCHOR hotline at 1-888-238–1233.

The Division of Taxation will also host a webinar from 10 a.m. to noon Wednesday about ANCHOR and other property tax relief programs. Click here to register.