NJ property tax relief to expand including renters under new Murphy plan
NEW JERSEY - New Jersey Gov. Phil Murphy announced more homeowners and renters would receive property tax relief under his new program- ANCHOR- which would replace the Homestead Benefit Program.
Under the plan which will be part of his upcoming budget proposal, Murphy said nearly two million people would now get a credit towards their property taxes which average $9,300, among the highest in the country.
Homeowners making up to $250,000 will be eligible for up to $700 in the fiscal year beginning July 1.
Renters who make up to $100,000 would get rebate checks — since they don't pay property taxes directly — of up to $250.
"This is another unkept promise from the past. The property tax relief was only at levels it was supposed to be for one year-- in 2007. Enough already," said Murphy in Fair Lawn.
Currently, the average property tax benefit is $626, with eligibility limited to homeowners making $75,000 or less if they're under 65 and not blind or disabled. Those older than 65 or who are blind or disabled face a $150,000 income cap currently.
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"Inconsistent funding and constantly changing rules lead many to know if they really qualified for a refund," said Murphy referring to the current property tax relief program, the Homestead Benefit Program.
The program carries a $900 million price tag, which would grow to $1.5 billion by 2025, with the aim of increasing the average benefit to $1,150 a year.
It's a fraction of the state's more than $46 billion budget, and the governor aims to make this an annual program.
"We believe that we must take action to offset costs and make life in New Jersey more affordable," said Murphy.
Overall the governor's proposal could benefit 1.8 million residents, up from the 470,000 who currently get the property tax assistance.
It's a fraction of the state's more than $46 billion budget, and the governor aims to make this an annual program.
But that requires lawmakers to renew it each year in the budget. That means, for example, if state revenues fall or a recession hits, the program could be on the chopping block.
Currently, the average property tax benefit is $626, with eligibility limited to homeowners making $75,000 or less if they're under 65 and not blind or disabled. Those older than 65 or who are blind or disabled face a $150,000 income cap currently.
The taxes are levied by school districts and local governments and pay for educational and other services. They're perennially a political issue in New Jersey, which moved to cap annual property tax increases at 2% in 2010 under former Republican Gov. Chris Christie.
Murphy has turned more to affordability since his narrow victory against Republican Jack Ciattarelli in November after campaigning on progressive policies he delivered in his first term. Murphy long claimed that the increased aid to schools in his budgets amounted to property tax relief. More state aid to schools lessens the burden on districts and reduces the need to hike taxes, but it's not guaranteed.
His stance exposed him to repeated attacks for failing to unveil a more comprehensive property tax relief plan. Thursday’s proposal amounts to him directly embracing property tax concerns.
With the Association Press