SOUTH JERSEY (KYW Newsradio) — New Jersey has a property tax problem, and for the second time this week, lawmakers are working to do something about it.
Gov. Phil Murphy announced on Thursday a new $900 million program to provide relief to homeowners and renters.
In the first year of what’s called the ANCHOR program, Murphy said it will put $900 million back into the pockets of people who are struggling to make ends meet as inflation soars.
“For homeowners, relief this year will average nearly $700. For renters, it will be up to $250,” he said.
With the property tax bill in New Jersey averaging just under $10,000 a year, this is a cut of about 7% — and that’s just the start.
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“Two years from now, when we fully fund this thing, that number will be $1,150,” said Murphy. “Over the next two years, we will continue to invest in ANCHOR so it meets the levels of relief promised back in 2007. Put another way, ANCHOR will represent the first time in nearly 20 years that we will fully fund direct property tax relief.”
He said the impact from this will be felt by more than 5.5 million people in the state and will effectively roll back several years of steady property tax increases.
“We don’t want property taxes to force families out of great communities,” he added.
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Murphy didn’t provide all the specifics on where the money is coming from but said more information will be released next week.
Earlier this week, lawmakers introduced a separate bill that would send back $330 million homeowners in tax credits. The state Senate unanimously approved those affordability bills Thursday.