Property Tax Relief Coming to New Jersey
Angela Lawrence, Paraprofessional at Klatzkin, contributed to this post.
In June 2022, New Jersey Governor Phil Murphy signed the Fiscal Year 2023 Appropriations Act, also known as the State’s budget for the coming fiscal year. One highlight of the budget is the Affordable New Jersey Communities for Homeowners and Renters Property Tax Relief Program (ANCHOR). This program replaces the Homestead Benefit program and will provide relief to double the number of homeowners and also include renters, which the previous program did not.
Who is eligible?
The ANCHOR program provides property tax relief to New Jersey residents who owned or rented their principal residence on October 1, 2019 and met certain income limits during that year. Residents are considered homeowners if they owned a house or condominium; residents are considered tenants if they rented an apartment, condominium, or house, or rented or owned a mobile home located in a mobile home park.
The income limits are as follows:
- Homeowners with incomes of $150,000 or less will receive $1,500.
- Homeowners with incomes of more than $150,000 but less than $250,000 will receive $1,000.
- Renters with incomes of $150,000 or less will receive $450.
How do I apply?
Eligible homeowners and renters can apply online or by uploading or mailing a paper application and necessary attachments using the electronic filing system. Homeowners can also apply by phone. Homeowners will receive a mailer with a special ID and PIN to complete the application online. If a homeowner did not receive a mailer but filed a Homestead Benefit Application last year, they can access the online ID and PIN inquiry system to retrieve the ANCHOR ID and PIN. Tenants will not receive a special ID or PIN, but will use their taxpayer ID to answer the filing questions. The informational mailers will provide the criteria for eligibility and the specific information needed to file the application.
If you do not receive an informational mailer or have other questions, you can contact the State at 1-888-238-1233.
What is the filing deadline and when will I receive my payment?
The ANCHOR filing deadline is December 30, 2022. All payments will be issued by check or direct deposit starting in late spring 2023 and no later than May 2023. The payments will not be made as a credit to property tax bills.
Contact Us
If you have questions about the information outlined above or need assistance with a tax issue, Klatzkin can help. For additional information click here to contact us. We look forward to speaking with you soon.
©2022 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation