Governor Murphy’s ANCHOR Program Could Lead To “Truly Historic” Tax Relief
It is nothing new that New Jersey homeowners pay the highest property taxes in the country, with average tax bills in 2021 around $9,200. Much-needed property tax relief could be on the way if approved as part of Governor Murphy’s state budget proposal for Fiscal Year 2023, beginning July 1. The new state program supported by Governor Phillip Murphy could provide up to two billion dollars in property tax relief to more than two million households in New Jersey. The news comes after New Jersey’s tax revenues are approximately 7 billion dollars over what Governor Murphy initially projected. The relief would impact not only property owners but renters as well.
Such relief would come through expansion of the Affordable New Jersey Communities for Homeowners and Renters (“ANCHOR”) Property Tax Relief Program. The Governor, along with Senate President Scutari and Assembly Speaker Craig Coughlin announced the expansion of the program on June 15, 2022. This program replaces the Homestead Rebate and is touted as “the largest tax relief program in our state’s history.” The expansion increases the program investment from nearly $900 million to over $2 billion and will impact households in Fiscal Year 2023. The ANCHOR program must still be approved by the Legislature which it is expected to do so.
Homeowners with a household income under $150,000 can expect to receive a $1,500 tax credit on their property tax bill each year. Homeowners with a household income between $150,000 to $250,000 can expect to receive a $1,000 property tax credit on their property tax bill each year. Renters with income up to $150,000 can expect to see $450 each year to help offset rent increases.
Homeowners and renters would be required to apply for a program similar to the Homestead Benefit. Those who have owned their home since October 1, 2019, can expect to see the rebate as a credit on their property tax bill. Homeowners who sold their homes after October 1, 2019, can choose to receive a check or direct deposit. New Jersey homeowners and renters likely would not see any of these rebates until May 2023.
The Governor’s proposed budget, containing the property tax relief laws and many other provisions, was approved by the State Legislature today. The Governor is expected to sign it into law tomorrow. More info is available here.