Assembly Speaker Craig Coughlin said the bill would “ensure the smooth implementation” of Stay NJ, a property tax relief program aimed at seniors. (Photo by Mary Iuvone for New Jersey Monitor)
Lawmakers in both chambers on Monday approved a series of technical fixes meant to prepare for the implementation of Stay NJ, a tax credit program that promises to cut property tax bills in half for New Jerseyans 65 and older.
The bill passed the Senate in a unanimous vote and cleared the Assembly with a single no vote from Assemblyman Brian Bergen (R-Morris), who opposed the bill over doubts about Stay NJ’s viability.
“We are now one step closer to historic property tax relief for New Jersey seniors,” Assembly Speaker Craig Coughlin (D-Middlesex), the program’s chief architect, said in a statement.
Among other things, the bill would clarify that Social Security, retirement, and other types of income typically excluded from taxation will be used to measure whether a New Jersey resident meets Stay NJ’s $500,000 income limit. The changes could make some residents ineligible for Stay NJ based on income.
It also clarifies that residents eligible for awards under the Anchor property tax rebate program or the senior freeze program would still receive them once Stay NJ goes into effect in 2026.
Residents who receive tax benefits from either program would see their awards under Stay NJ reduced by an equal amount. Combined, the three programs would have a benefit of no more than $6,500 or half of a resident’s property tax bill, whichever is less. The program’s cap will increase annually at the same rate as the state’s average property tax bill.
“This legislation will ensure the smooth implementation of StayNJ, with seniors seeing their property taxes cut in half,” Coughlin said. “Families planning for the future will have affordable options and seniors will be able to retire in comfort, close to grandchildren and the communities they helped build.”
The bill would also close a loophole in the original legislation that could have caused awards under Stay NJ in one year to reduce awards in the next by basing Stay NJ’s tax credits on property taxes billed instead of property taxes paid.
Awards under Stay NJ for the 2026 calendar year will be halved — to a maximum of $3,250 — because of a mismatch between the fiscal and calendar years. Payments under the program are due to begin in the fiscal year that starts on July 1, 2025, and will cover only the first half of 2026.
The bill would allow the Treasury to pay out the first year of Stay NJ through checks or direct deposit while officials set up a tax credit system that can unify disparate property tax relief programs.
Other provisions would update Anchor, which offers property tax rebates of between $1,000 and $1,750 for homeowners and $450 to $750 for renters, depending on the filer’s age and income, to base its awards off of the 2025 calendar year beginning in 2026. Anchor’s current cycle is based on 2021 tax bills.
Bergen and some others have questioned whether tax credits from Stay NJ will ever materialize, pointing to the state’s slumping reserves and the program’s costs, which are expected to run $1.2 billion annually.
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