Critics Pan NJ Democrat’s Plan To Cut Property Taxes For Seniors

NEW JERSEY — New Jersey Assembly Speaker Craig Coughlin says he has a plan to cut property taxes for Garden State seniors. But the top Democratic lawmaker’s blueprint is seeing criticism from both ends of the political spectrum, some who say it's a "gimmick," and others who claim that it will mainly dole out tax cuts to the wealthiest households in the state.

On Thursday, Coughlin unveiled a proposal that he says will “cut property taxes in half” for most seniors in New Jersey. According to Coughlin, A-1 would create a new property tax credit program called StayNJ, which will make it more affordable for residents to remain in their homes.

Here’s how it would work, he said:

“Under StayNJ, the state would provide a 50% credit on seniors’ property tax bills, capped at $10,000. Homeowners who are 65 years or older would be eligible for the tax credit on their principal residence, and there is no income limit for eligibility. Payments would be applied directly to tax bills, with benefits starting on January 1, 2025.”

“I’ve heard from people who have to sell the home they raised their children in, and leave the neighborhood they’ve lived in for thirty years, because they can’t afford to stay,” said Coughlin, who represents the state’s 19th District.

“My plan, StayNJ, will mean that seniors have the freedom to plan a future in New Jersey with friends and loved ones they’ve spent a lifetime making memories with,” Coughlin said.

The bill – which also contains provisions that will expand medical assistance for health insurance and prescription drugs – was referred to the Assembly Aging and Senior Services Committee for further review.

The assemblyman’s proposal met with a warm response from his Democratic Party peer, Senate President Nick Scutari.

“I am committed to working with the Speaker and sponsor legislation for meaningful property tax relief for seniors,” Scutari said. “Affordability is the primary consideration in whether senior citizens can remain in their homes. I will explore any option that can help them stay in New Jersey and continue to enjoy our great state.”

• See Related: Highest NJ Property Taxes (See Where Your Town Ranks On New List)

NJ REPUBLICAN LAWMAKER: ‘A GIMMICK’

Assemblyman Brian Bergen had a different take on Coughlin’s proposal, however.

Bergen – a Republican who represents the state’s 25th District – released a statement on Friday blasting the plan and labeling it as a “gimmick.”

According to Bergen:

“Coughlin is pushing the StayNJ program, which includes the property tax relief proposal aimed at people aged 65 or older. It would require a $300 million supplemental appropriation for this fiscal year and cost the state $1.2 billion by 2025. [Gov. Phil] Murphy has indicated he refuses to sign the measure if it stays in its current form. Republicans have argued the plan’s discretionary spending isn’t real relief since it could be gone as soon as a recession happens.”

“If Democrats wanted property tax relief for the people of New Jersey who are struggling the most, they would pass the disabled vet property tax deduction,” Bergen said, referring to A888, a bill he claims is being “stonewalled” in the Assembly.

“Under one-party rule, New Jersey taxpayers have been overtaxed and pushed into poverty,” he continued.

“Residents deserve real structural change,” Bergen added. “Seniors and veterans deserve representatives committed to making that happen, not career politicians looking to secure their seats.”

• See Related: Property Tax Overhaul Proposed By NJ Republicans

THINK TANK: ‘TAX CUTS TO THE WEALTHIEST HOUSEHOLDS’

Meanwhile, Coughlin’s proposal is also raising eyebrows on the other end of the political spectrum.

On Friday, Peter Chen – a senior policy analyst with progressive-leaning nonprofit think tank New Jersey Policy Perspective (NJPP) – issued a wary statement about the proposed senior tax credit program.

“Lawmakers should be doing everything they can to help seniors keep up with rising costs, but this proposal would fall short by directing the biggest tax cuts to the wealthiest households while many low-income seniors would get nothing,” Chen said.

“With no income cap on eligibility, higher tax credits for more expensive homes, and no assistance for renters, it’s clear who this program would benefit and who it would leave behind,” Chen continued. “The program also comes at an enormous cost to the state, just as revenue collections are coming in lower than expected, putting funding for existing public programs and services that seniors rely on at risk.”

According to Chen and the NJPP, the StayNJ proposal would benefit wealthy homeowners the most, leave renters behind, and widen the racial wealth gap:

• Homeowners with property tax bills in excess of $20,000 would receive the maximum StayNJ credit while lower-income residents would receive less due to their smaller homes and lower property tax bills.
• Only thirteen municipalities in New Jersey — including Alpine, Millburn, Rumson, and Princeton — have an average property tax bill that would qualify for the full StayNJ credit. These towns have average property values of over $1 million and are home to celebrities, professional athletes, and business and finance executives.
• One in four seniors aged 65 and over — roughly 230,000 New Jersey residents — rent their homes and would be left out of the proposal, including more than half of Black and Hispanic/Latinx seniors in the state.
• Homeowners over age 65 in New Jersey are disproportionately white. More than 80 percent of white seniors are homeowners, compared to 41 percent of Hispanic/Latinx seniors and 49 percent of Black seniors.

“Making New Jersey more affordable for seniors is a noble goal, but we’re not going to get there by giving the likes of Bruce Springsteen and Phil Murphy a $10,000 check,” Chen added. “There are more effective and efficient ways to target relief to the seniors who are struggling the most with high housing costs, grocery bills, and prescription drug prices.”

• See Related: Arm Wrestling Match Over New Jersey's Business Tax Is Heating Up

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