The more than 1.8 million people living in New Jersey are expected to get some relief from exorbitant property taxes.
Governor Phil Murphy announced the ANCHOR property tax relief program that would provide up to $900 million in tax relief for both homeowners and renters.
The ANCHOR (Affordable New Jersey Community for Homeowners and Renters) property tax relief program will be effective for fiscal year 2023 (FY2023).
This program replaces the Homestead Rebate Program that serves 470,000 New Jersey homeowners each year, but renters are not eligible under that program.
The Homestead Rebate Program provides an average return of $626.
New Jersey has the highest property tax rates in the US, followed by Illinois and New Hampshire. WalletHub report good.
property tax In New Jersey the walks vary by city, but the average is about 2.4% compared to the national average of 1.07%.
To give some perspective, the rates mean that a homeowner would pay about $12,000 on a $500,000 home.
how much will you get
Under the ANCHOR Property Tax Relief Program, homeowners are eligible to receive an average exemption of $700 in FY2023.
The money will be used to offset property tax cost.
The intention with the exemption is to reduce the effective average property tax cost to 2016 levels for many families that were previously ineligible for property tax relief.
The governor is also proposing a three-year increase for the anchor.
By fiscal year 2025, the estate tax exemption provided as part of the program will increase to an average of $1,150 per eligible household.
Who is eligible?
Homeowners earning up to $250,000 per year are eligible for an average $700 exemption.
Renters up to $100,000 annually are eligible for a rebate of up to $250 to help cover the cost of rent increases due to property taxes.
However, it is not yet confirmed how people can claim the payment.
Governor Phil Murphy said in a statement: “While the state does not set property taxes, we believe we must take action to offset the costs and make life more affordable in New Jersey.
“Through the ANCHOR Property Tax Relief Program, we can provide real support for families and seniors, helping them live in their favorite homes and communities.”
Where does property tax money go?
Property taxes are used by local governments to provide certain public services.
The amount of money that goes toward these services will change depending on where you live.
Some of the main areas are:
- public schools
- public pool
- Emergency Services: Law Enforcement, Fire Department, Ambulance Services
- local government
Other local factors can lead to an increase in property tax, such as road repairs, a new school being built, or an increase in your local government budget.
If sales tax revenue falls short in your area, your local government may raise property taxes to compensate for the loss.
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