Gov. Phil Murphy on Friday evening signed a $56.6 billion budget into law. Though the budget didn’t include everything listed out in legislation last year, it still approved funding for the StayNJ program, which offers property tax relief to seniors from New Jersey.
Tax relief to seniors from New Jersey: who will get it?
Gov. Murphy’s $56.6 billion budget includes $220 million for the StayNJ program, with the objective to help seniors remain in New Jersey.
In March, a survey from the Monmouth University Polling Institute found that almost half of New Jersey residents were likely to move out of state at some point, with many citing the high cost of living as the primary reason. Also, the report found that about 45% of residents were likely to stay because of the StayNJ program.
New Jersey’s StayNJ program is estimated to cost about $1.3 billion annually, and is open to seniors over the age of 65 and with income not more than $500,000. About 90% of the recipients are expected to have an income less than $200,000.
In May, a task force issued recommendations for the implementation of the StayNJ program. As per the recommendations, the application process for the program must start no later than February 1 each year, and the process should be similar to the current Senior Freeze program.
There is also a proposal to create a streamlined application process that will work for all three programs – the StayNJ, ANCHOR, and Senior Freeze property tax relief. Presently, all three programs require separate applications with different submission deadlines.
Also, the task force recommended that the benefits amount for the program should depend on the year preceding the application year. The program will use the income from the New Jersey tax return to determine an applicant’s eligibility.
Further, the task force recommended that benefits under the StayNJ program should be paid after ANCHOR benefits. The program is estimated to reduce property taxes for seniors by up to $6,500.
What else does the budget include?
Gov. Murphy called the $56.6 billion budget a “big day for New Jersey.” Specifically, the budget pre-funds the StayNJ program.
Once fully implemented, the program, which is expected to launch in FY2026, is estimated to reduce property taxes in half for many eligible seniors. However, it isn’t clear if there will be enough funding for the program to be launched in next year’s budget.
In addition to offering property tax relief to seniors from New Jersey, the budget introduces a tax hike on large companies, sets aside money for public schools and pensions, as well as for other property-tax relief programs.
“With this budget, we are going to make life more affordable for more families. We are going to create new economic opportunities for our workers and local businesses. And we are going to invest in the potential of every one of our neighbors — from our students to our senior citizens,” Gov. Murphy said in a statement.
