Stimulus Update: New Jersey Homeowners Could Earn Up to $1,500 in Property-Tax Relief — Who Qualifies?
New Jerseyans get the short end of the stick as far as property taxes are concerned. The average effective tax rate in New Jersey is 2.42%, compared to the national average of 1.07%, according to SmartAsset.
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Last week, N.J. Governor Phil Murphy announced a plan that would open the state’s coffers to provide more than $2 billion in rebates to approximately 2 million New Jersey households, offering up to $1,500 to families who pay property tax. For the first time ever, renters would also receive relief.
The expansion of the state’s ANCHOR Property Relief Program would help reduce the average household’s property tax bill to its lowest level in more than a decade, from an average near $9,300 to an expected $7,800, 4 NBC New York reported. Homeowners who earn as much as $250,000 would be eligible to receive some cash.
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If the plan is passed as expected, an expected 870,000 New Jersey households that make up to $150,000 would get $1,500 in direct relief. Families who make between $150,000 and $250,000 would receive $1,000 under the plan. Renters who make up to $150,000 would receive $450 in rent assistance.
Murphy’s original plan had the state loosening up $900 million from the state’s coffers to help approximately 1.8 New Jersey residents with $700 rebates for homeowners and $250 for renters, Accounting Today reported. However, with the July 1 state budget looming and a $10.7 billion tax collection surplus at its disposal, there was an opportunity to expand the original program to help more New Jersey residents.
“State revenues have put us in a very strong fiscal position,” Murphy said at the program announcement. “Today we are providing truly historic tax relief.”
State Senate Republicans — who have their own initiative to give 4 million households $1,000 tax rebates, according to Accounting Today — are against the plan. “It doesn’t deliver meaningful changes in fiscal policy and will be the first program to get cut when money is tight,” said Republican Assembly Leader John DiMaio, as reported by 4 NBC New York.
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This article originally appeared on GOBankingRates.com: Stimulus Update: New Jersey Homeowners Could Earn Up to $1,500 in Property-Tax Relief — Who Qualifies?
