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New Jersey lawmakers have approved changes to the "Stay NJ" tax credit program, aimed at providing property tax relief for seniors. The program, set to be implemented in 2026, promises to cut property tax bills in half for New Jersey residents aged 65 and older who earn less than $500,000 a year. The changes were passed by both the state Senate and Assembly on Monday (October 28).
The bill clarifies different types of income that will be used to determine if a resident meets the income limit for the program. This includes Social Security, retirement, and other types of income typically excluded from taxation. The changes could potentially make some residents ineligible for Stay NJ based on income. The bill also ensures 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.
Assembly Speaker Craig Coughlin, the program’s chief architect, said the changes would ensure the smooth implementation of Stay NJ. "This legislation will ensure the smooth implementation of Stay NJ, with seniors seeing their property taxes cut in half," Coughlin said in a statement to the New Jersey Monitor.
However, the bill does not address how the program will be funded. The program's costs are expected to run $1.2 billion annually. Some lawmakers have expressed doubts about whether there will be enough money to fully fund Stay NJ as the state contends with an expected budget crunch in the coming years.
The bill now awaits the signature of Governor Phil Murphy to become law.