New Jersey homeowners are going to see something happen that’s never happened before, they are going to get property tax relief.
New Jersey Governor Phil Murphy presented a proposal for the coming fiscal year as part of his effort to finally address the burden of property taxes for New Jersey homeowners. The governor framed his proposal in the form of making New Jersey more affordable. But his efforts will have a long way to travel, as New Jersey ranks number one in the nation for the highest property taxes. Not only have New Jersey property taxes taken first place for the last five years or so, you sure have seen property values appreciate over the last 3 years by up to 39% due to the pandemic bull market.
The governor’s choice of words, affordability in New Jersey, will be fighting a very stiff uphill fiscal battle in the coming years.
This new proposal will also benefit New Jersey renters.
To qualify:
New Jersey homeowners filing for the relief must make less than $250,000 a year in order to get the credit toward their property taxes of up to $700 for the coming fiscal year.
New Jersey renters will receive up to $250 as long as they do not make more than $100,000 a year.
It is estimated that the proposal would benefit up to 1.8 million New Jersey residents. The cost of the program is estimated to be $900 million, and would grow by 2025 to $1.5 billion. This would bring the total benefit to a homeowner to $1,150 per year.
But as with every state concession, it will require the lawmakers to renew it each year in the budget, as opposed to the state sales tax, which never needs annual renewal. Current tax laws in the state of New Jersey traditionally have targeted the wealthy and businesses. There is really an effort to address the chronic compulsion to spend as much as possible on the state, county and town level.
The governor’s proposal is being challenged with another $3 billion package, which gives back to the taxpayer excess tax collections in the form of refundable tax credits.
According to recent estimates, the average annual property tax rate is approximately $9,300 a year and is the highest in the country. The bulk of those taxes are funding schools and local governments with their ancillary services. This proposal by the current New Jersey governor is the first he has made in an effort to address New Jersey’s punitive property tax code.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.