Gov. Phil Murphy unveiled the ANCHOR property tax easing program, a new initiative that will allocate $ 900 million in property taxes to nearly 1.8 million homeowners and tenants across New Jersey over the 2023 fiscal year.
According to a March 3 press release from Murphy’s office, the ANCHOR property tax relief program (available in the New Jersey community for homeowners and tenants) is part of Murphy’s 2023 budget proposal.
Under the program, homeowners earning up to $ 250,000 a year are eligible for an average $ 700 discount in fiscal 2023 to offset property tax costs by reducing the effective average property tax cost to 2016 levels for many households that were not previously eligible for the property tax exemption. according to a press release.
In addition, tenants who earn up to $ 100,000 a year are eligible for a discount of up to $ 250 to help cover the cost of rent increases due to property taxes.
“This program will provide direct property tax benefits to households, whether they own or rent,” Murphy said. “Although the state does not impose property taxes, we believe we should take steps to recoup costs and make life in New Jersey more affordable. Through this program, we can provide real support to families and the elderly by helping them stay in the homes and communities they love. ”
Murphy proposes to increase ANCHOR by three years. According to a press release, by fiscal year 2025, real estate tax rebates provided under the program will increase to an average of $ 1,150 per eligible family, with annual public investment in the program to be up to $ 1.5 billion per year.
The ANCHOR program expands and replaces the Homestead discount program, which serves 470,000 homeowners annually and provides an average benefit of $ 626, the press release said.
Tenants are not eligible to participate in the current program, but ANCHOR recognizes that rents are often raised to offset rising property taxes. ANCHOR will make nearly four times more New Jersey residents eligible for a property tax rebate, compared to Homestead’s discount program, the press release said.