Major Property Tax Rebate May Be Restored In New NJ Budget

As the deadline for Mikie Sherrill to pass her first state budget as governor approaches, the proposed slashes to New Jersey property tax relief may be different from what was initially introduced.

In March, Sherrill’s introduced budget called for slashes to the Stay NJ program, a tax relief program introduced in 2025 to help senior citizens with tax relief, with the purpose of encouraging them to stay in the Garden State upon retiring.

While the proposed budget accounted for the most property tax relief in state history, it also slashed the eligibility and amount residents can receive through Stay NJ.

Related: Sherrill Cuts Property Tax Relief Eligibility In Budget Proposal

Under the proposed budget, the Stay NJ income requirement would be cut in half, meaning that the eligible seniors must have an income below $250,000, the same eligibility requirement as the ANCHOR program. Additionally, it lowers the maximum benefit from $6,500 to $4,000.

The governor said the move was a “fairer, more efficient use of taxpayer money.”

However, a joint statement from Sherrill, Senate President Scutari, and Assembly Speaker Coughlin (who conceived Stay NJ) indicated that the changes to the program might not be as drastic in the final version of the budget.

The statement specified that the 2027 budget will ensure that “StayNJ is a sustainable benefit retirees can count on.”

Additionally, four sources familiar with the private budget negotiations told NJ.com that Sherrill agreed to dedicate an additional $100 million to bolster Stay NJ funding.

State officials said the budget, which is scheduled to be introduced by July 1, still amounts to $60.7 billion. If the figures reported by NJ.com are accurate, it’s not clear what budget lines the $100 million is being allocated from.

American Association of Retired Persons (AARP) State Director Chris Widelo, who initially criticized the governor for the proposed Stay NJ slashes, commended her for ensuring the program stays well-funded.

“AARP New Jersey applauds Governor Sherrill, Senate President Scutari, and Speaker Coughlin for reaching an agreement that preserves Stay NJ and maintains the program's full $6,500 maximum benefit for eligible homeowners. This agreement reflects a continued commitment to helping older residents age in place and providing relief to those who need it most,” Widelo said. “For months, we have heard from older adults across New Jersey who were counting on this benefit. Many have already planned their household budgets around the promise of Stay NJ, and today's agreement provides important certainty for residents facing ongoing affordability challenges."

Specifics on the budget are expected to be released in the coming days. Check back with Patch for updates.

More from Patch:

• ANCHOR, Stay NJ Relief At Risk: What To Know
• Cuts To NJ Tax Relief Leaves Homeowners Outraged, New Poll Says
• ANCHOR Rebate Incoming, State Offers Filing Help