A bipartisan bill was passed by both chambers, recently referred to as StayNJ: the program is intended to cut seniors’ property tax bills and will begin to go out in 2026. This program is designed to provide New Jersey homeowners 65 and over tax credits worth up to half of their property tax bills, which will cap out at $6,500, as long as the individuals make no more than $500,000 a year. This is a very generous program. One of the reasons for this bill is to halt the stream of seniors leaving the state because of the highest property taxes in the country. The cost of living for seniors is very high in New Jersey as a result of the cost of the property taxes.
The bill was signed on July 9th, 2023 by Governor Phil Murphy.
The bill is expected to cost $1.3 billion when the payouts start to go out in the first quarter of 2026. There is a concern, though, as to whether these tax awards will ever come to pass, indicating that there are provisions in the bill to stop payments if the state does not meet its obligations on school aid, pension payments and two tax deduction programs for seniors and military veterans.
The bill will also be blocked if the state cannot make the payments for maintain awards if the state doesn’t have 12% surplus of the annual budget.
The Republicans are concerned that the threshold is too high and that those seniors who are making in excess of $450,000 are receiving tax benefits that they have no need for.
The money doesn’t come from any fund but actually comes from monies paid by taxpayers.
The Assembly rejected a motion to limit payments to those earning $200,000 a year or less. But this motion was blocked by certain Democratic legislators.
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.
Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/