Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that amends previous tax laws to reduce property tax rates for seniors 65 and older in New Jersey.

Highlights:

• Amends state previous tax laws to reduce property tax rates for seniors 65 and older in New Jersey (Sec. 2).

• Amends and clarifies that Social Security, retirement, and other types of income typically excluded from taxation will be used to measure whether a New Jersey resident meets Stay NJ’s $500,000 income limit (Sec. 2).

• Specifies that residents eligible for awards under the Anchor or the senior freeze program would still receive them once Stay NJ goes into effect in 2026 (Sec. 2).

• Defines “ANCHOR” as the Affordable New Jersey Communities for Homeowners and Renters Property Tax Relief Program (Sec. 2).

• Requires that residents who receive tax benefits from either program see their awards under Stay NJ reduced by an equal amount (Sec. 2).

• Repeals a previous loophole in the original legislation that could have caused awards under Stay NJ in one year to reduce awards in the next by basing Stay NJ’s tax credits on property taxes billed instead of property taxes paid (Sec. 2).

• Authorizes the state Treasury Department to pay out the first year of Stay NJ through checks or direct deposits while officials set up a tax credit system that can unify disparate property tax relief programs (Sec. 2).

• Amends Anchor, which offers property tax rebates of between $1,000 and $1,750 for homeowners and $450 to $750 for renters, depending on the filer’s age and income, to base its awards off of the 2025 calendar year beginning in 2026 (Sec. 2).

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 3).

Full Bill Text