03 Jul Are seniors really going to get a big property tax break?

Q. I heard there’s a new program to cut the property bills of seniors in New Jersey. That sounds too good to be true. Is it?
— Senior

A. You’re right to be skeptical.

But yes, it’s true, assuming — and it’s a big assumption — that the state’s fiscal health remains such that we can afford it.

The program, called StayNJ, became law on June 30, the product of a last-minute huge addition to state budget negotiations.

The benefits to homeowners won’t start until the first quarter of 2026.

Seniors who have income of less than $500,000 would get a 50% credit on their property tax bills for their primary residences, similar to how the Homestead Rebate credits were given. There’s a cap on savings of $6,500 a year, and it would be indexed, possibly creeping higher as property taxes rise over time.

Critics of the plan said it disproportionately benefits some richer residents and that there’s no guarantee the state can afford the $1.3 billion plan year after year. But for now, it’s law.

But immediately, there’s an increase in the ANCHOR benefit for both homeowners and renters. That benefit will go up by $250 to $700 for renters and up to $1,750 for homeowners, again based on income levels.

One other change of note: the new law will increase the Senior Freeze program, making more homeowners eligible, and also decrease the residency requirement from 10 years to only three years. So if you haven’t applied in the past, take another look at the program.

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This story was originally published on July 3, 2023.

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