TRENTON (KYW Newsradio) — Gov. Phil Murphy and New Jersey legislative leaders have reached an agreement on a package of middle-class tax relief measures, as part of ongoing budget talks.
The deal would expand tax breaks and property tax relief, as part of New Jersey’s budget for the fiscal year starting July 1.
Murphy announced the agreement Monday in a joint statement with Senate President Steve Sweeney (D-Salem County) and Assembly Speaker Craig Coughlin (D-Bergen County).
The agreement would give middle-class taxpayers income tax rebates of up to $500, funded by the “millionaires tax” adopted last fall.
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The average homestead rebate would also increase by $130 for seniors and homeowners with disabilities, by basing benefits on 2017 property tax bills, instead of 2006 as they are currently calculated.
“I’m very happy, as we announced earlier, that we’re at long last going to update the basis upon which the homestead rebate is calculated,” Murphy said Monday at his COVID-19 briefing.
“That may sound technical, folks, but trust me, that’s a good thing in terms of property tax relief.”
Under the agreement, New Jersey would also expand its child and dependent care tax credit.
Overall budget negotiations continue, and Murphy didn’t have much to say about them at his COVID-19 briefing.
“Talking about some more aggressive tax relief, which, I think, we’re all collectively proud of. Nothing to report beyond that," he said.
Last fall, New Jersey was looking at a $4 billion budget hole. However, higher than expected revenues, borrowing and $6 billion from the American Rescue plan have left the state ending this fiscal year with a $10 billion surplus.
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