On May 30, The Stay NJ Taskforce released their report outlining recommendations for implementing the Stay NJ property tax relief program and restructuring and consolidating various property tax relief programs. The Stay NJ Task Force (Task Force) made thirteen recommendations.
The Task Force recommends that the Stay NJ application timeline begin no later than February 1st, to adhere to the current Senior Freeze Program process and closely resemble the existing application format. The Taskforce proposes that benefits be determined based on the calendar year (CY) immediately preceding the application year, except for first-time Senior Freeze applicants who will follow existing Senior Freeze Program rules.
Income eligibility for the Senior Freeze and Stay NJ Programs will be based on New Jersey tax returns plus Social Security. As such it will include gross Social Security benefits and all taxable and non-taxable income reported on the New Jersey Gross Income Tax Return. This includes excluded pension and retirement income, retirement income qualifying for the Retirement Exclusion, income qualifying for the Other Income Exclusion, and all non-taxable unearned income such as non-taxable dividends and non-taxable interest income. The ANCHOR Program's current income criteria remain unchanged.
The Task Force recommends that residency requirements dictate applicants must reside in the state as of December 31 of the benefit year and for the full twelve months and must be 65 years old as of December 31 of the benefit year. Legislation must be enacted and signed into law at least 90 days before February 1, 2025, to implement these changes.
The Task Force proposes that Stay NJ benefits should equal 50% of property taxes, capped at $6,500 and reduced by any benefits received from the Senior Freeze and ANCHOR programs paid to the homeowner. Any remaining benefit is paid separately after ANCHOR.
In the program's first year, benefits for all programs will be issued by check or direct deposit. They also recommend that the Department of Community Affairs (DCA), in coordination with the Department of the Treasury and local governments, develop a standard application packet to be sent to homeowners no later than the November tax bill. The packet should outline expected benefits and actual property taxes to be paid when offset by property tax relief earned in the prior year. For future years, the Task Force emphasizes the need for an effective credit process, involving surveys of local governments to gather necessary information.
Payment timelines should ensure consistency with payments for Senior Freeze and ANCHOR programs, with Stay NJ benefits paid subsequently.
The Task Force also recommends that the Division of Taxation should explore the feasibility of allowing taxpayers the option of direct payments instead of tax credits for the Senior Freeze and Stay NJ Programs. Additionally, the Task Force encourages the Director of the Division of Taxation to waive the requirement for proof of property taxes paid when applying for the Senior Freeze benefit, simplifying the process by eliminating the PTR 1A, which is a form used by first-time applicants who are applying for the Property Tax Reimbursement Program; and PTR 2A which is used for applicants who are reapplying certification process, using the Director's existing statutory authority.
For more information, please visit the Stay NJ Program website for more information.