The State Senate Community and Urban Affairs Committee moved forward with a package of bills that would reduce property tax within the state, providing relief to homeowners and renters alike.
“For the residents of New Jersey, affordability is the most pressing issue and property taxes are the greatest burden,” said State Senate President Nick Scutari (D-22), who acted as a sponsor for the bills. “These bills will provide immediate and long-term financial relief to homeowners and renters working hard to support themselves and their families.”
The bills, co-sponsored by State Sen. Troy Singleton (D-7), would boost municipal payments from energy tax receipts, increase the tax deduction for renters, and allow for mortgage forbearance.
“The measures we passed seek to not only reduce the property tax burden on our families, but provide much needed savings for renters and deserved mortgage relief for homeowners,” said Singleton.
Specifics of the Bill
The first bill will increase the amount of money distributed to municipalities from the Energy Tax fund, provided 100% of the funds would be used to reduce their property tax levy.
A second bill would increase the tax deduction for renters to 30% from the current 18% rate. A third bill would extend a grace period to homeowners and small business landlords for mortgage payments if they experienced financial hardships connect to the pandemic.
Additionally, Singleton introduced legislation that would increase the gross income tax credit for property taxes to $200 from $50.
Other bills passed by the State Senate committee had backing from members of the GOP, praising it as an effort to ease regulatory burdens for businesses and improve economic development in the state.
Part of Murphy’s Promise
The move from Dems in the state follows Murphy’s pledge there would be no new taxes in 2022 and that he would continue the fight to lower property taxes in the Garden State.
“We’re making more progress against property taxes than any administration before us,” he said in January.
This was a theme he reiterated during his second inauguration when he said the Garden State also had to become the “Opportunity State.”
“We’re going to keep chopping away at property taxes,” said Murphy. “Though property taxes are not set by the state—by either me or the Legislature—the decisions and investments we make directly impact their trajectory. Every dollar of new state funding for our schools and communities, for local roads and libraries, and for countless other areas, is a dollar that stays in your pocket as a property taxpayer.”