Gov. Phil Murphy held an event in Somerville on May 12 to tout the ANCHOR Property Tax Program proposed in his Fiscal Year 2023 Budget Proposal.
The new initiative would distribute $900 million in property tax relief to nearly 1.8 million homeowners and renters across the state. Under the program, homeowners making up to $250,000 per year would be eligible to receive nearly $700 in average rebates, while renters making up to $100,000 per year are eligible for a rebate up to $250.
“Through the ANCHOR Property Tax Relief Program, more New Jersey taxpayers will receive the support they need to offset the costs of property taxes, making our state stronger, fairer, and more affordable for all,” Murphy said.
The ANCHOR program would effectively expand on and replace the Homestead Rebate Program, which serves 47,000 homeowners annually with an average benefit of $626.
In March, Murphy proposed a three-year ramp-up for ANCHOR that would increase average payouts to $1,150 per eligible household, with an annual state investment up to $1.5 billion annually.
“Working-class families of New Jersey deserve our support when it comes to keeping homes affordable,” said Lt. Gov. Sheila Oliver. “We are taking the proper steps forward to provide property tax relief for the families who need it most.”
The proposed plan comes as the state budget battle heats up in Trenton, with lawmakers debating how to use a tranche of tax surplus and federal dollars. Many lawmakers have expressed concern about creating expensive programs that may be unfunded in future years, especially as surpluses and federal dollars dry up or if a recession strikes.