New Jersey homeowners and renters would get another year of the ANCHOR property tax relief benefit at the same payment levels — up to $1,750 for homeowners and $700 for renters — under the new state budget proposed by Gov. Phil Murphy on Tuesday.
“At a time when families are grappling with higher prices at the checkout counter, we are putting more money back into their pockets than ever before,” Murphy said during a speech at the Statehouse in Trenton as he unveiled his seventh budget proposal. “Since it was introduced, the ANCHOR program has effectively lowered property taxes down to levels that, in many cases, our families have not seen in a decade.”
Murphy’s budget plan asks for more than $2 billion for the next ANCHOR benefit, which is for the 2021 fiscal year.
The current benefit, paid out for the 2020 tax year, sent more than $2.2 billionto 2 million residents, the state said.
About 1.3 million homeowners and 700,000 renters received the benefit, the state Treasury Department said.
ANCHOR has no age restrictions. Under Murphy’s budget proposal, the program would pay eligible homeowners in the state up to $1,500 and $450 to qualifying renters, plus an added bonus of $250 for both senior renters and homeowners, for the 2021 benefit year.
The benefit — designed to help offset the Garden State’s notoriously high property taxes — has to be funded in the budget every year.
The average property tax bill in New Jersey hit a record high of $9,803 in 2023, up 3.3% from the year before, according to data from the state Department of Community Affairs.
Murphy, a Democrat, also called for setting aside $200 million for a special fund to continue ramping up funding for theStay NJ property tax cut, though that program isn’t set to kick in until 2026. That’s on top of the $100 million set aside for the program in the current state budget.
In its current form, Stay NJ would cut property taxes by up to 50%, capped at $6,500, for homeowners age 65 and older in the state who make less than $500,000 a year.
But public policy experts say a lot more will have to happen for the state to afford the benefit as it is written into current law.
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Stay NJ, together with the ANCHOR benefit, could cost more than $4.5 billion per year, experts said. Estimates from the state Office of Legislative Services found Stay NJ would cost between $2.1 and $2.4 billion in the 2026 budget.
The Democratic-controlled state Legislature has to negotiate a final budget with Murphy before the 2025 fiscal year begins July 1.
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Karin Price Mueller may be reached at KPriceMueller@NJAdvanceMedia.com. Follow her on X at @KPMueller.
Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on X at @johnsb01.
