NJ Property tax relief program increased to $2 billion
On June 15th, Governor Phil Murphy, Senate President Scutari, and Assembly Speaker Craig Coughlin announced the expansion of the ANCHOR Tax Relief Program, making the relief program one of the largest in state history.
ANCHOR, which stands for Affordable New Jersey Communities for Homeowners and Renters, was announced by Governor Murphy in March as part of his Fiscal Year 2023 (FY2023) Budget Proposal. The expansion of the program will increase this investment from the nearly $900 million proposed in March to over $2 billion and will reduce property taxes for over 1.16 million homeowners and 900,000 renters beginning in FY2023.
Under the expanded ANCHOR Property Tax Relief Program proposal, there will be a full phase-in of rebates and the benefits will be simplified:
870,000-plus homeowners with a household income of under $150,000 would receive a $1,500 property tax credit on their property tax bill each year
290,000-plus homeowners with a household income between $150,000 and $250,000 would receive a $1,000 property tax credit on their property tax bill each year
900,000-plus renters with incomes up to $150,000 would receive $450 each year to help offset the rent increases caused by increasing property taxes
The average New Jersey property tax bill was approximately $9,300 in 2021. ANCHOR’s direct property tax relief rebates could offset over 16 percent of the average property tax bill in New Jersey for some homeowners. For a middle-class family receiving the $1,500 in direct relief, the average bill will effectively become $7,800, a property tax level New Jersey has not seen since 2012.
“Helping people keep up with their bills and giving them more breathing room has never been more important than it is right now,” said Assemblyman Freiman. “Two billion dollars in direct property tax relief to New Jersey residents is monumental. Taxpayers will see the impact of this kind of investment on their property tax bill and in their wallets.”
“We are proud to stand with the Governor and Speaker Coughlin today for the announcement of the ANCHOR Program,” said Assemblywoman Sadaf Jaffer. “We are all committed to ensuring that New Jersey is an affordable state to live and work in. Direct and tangible property tax relief is one important way we can make that goal a reality."
"I want to give credit where it is due, and to thank Governor Murphy, Senate President Scutari and Speaker Coughlin for coming together to recognize that many New Jersey residents are still struggling to make ends meet in the aftermath of the worst days of the COVID 19 pandemic," said Senator Andrew Zwicker. "The ANCHOR program promises timely relief to millions of homeowners and renters, putting money back into their pockets, and helping to keep our state affordable, and our economy strong and competitive in both the short- and long-term."
The ANCHOR program expands on and replaces the Homestead Rebate Program, which serves 470,000 homeowners annually and provides an average benefit of $628. Renters are not eligible for the current Homestead program, but ANCHOR recognizes that rents are often raised to offset rising property taxes. ANCHOR will make over four times more New Jerseyans eligible to receive a property tax rebate when compared with Homestead.
