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Around 1.8 million Americans will receive up to $700 in payments under the new program

MORE than 1.8 million people living in New Jersey are expected to receive some relief from sky-high property taxes.

Gov. Phil Murphy announced the ANCHOR Property Tax Relief program, which will offer up to $900 million in tax relief for homeowners and renters.

Both homeowners and renters are eligible to receive money from the program

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Both homeowners and renters are eligible to receive money from the program

ANCHOR’s (Affordable New Jersey Communities for Homeowners and Renters) property tax relief program is effective for fiscal year 2023 (FY2023).

The program replaces the Homestead Rebate Program, which serves 470,000 New Jersey homeowners each year, but renters are not eligible under this program.

The Homestead rebate program offers an average benefit of $626.

New Jersey has the highest property tax rates in the US, followed by Illinois and New Hampshire, according to a WalletHub Report.

Property taxes vary by city in New Jersey, but average about 2.4% compared to the national average of 1.07%.

To give some perspective, the rates mean that a homeowner would pay around $12,000 for a $500,000 home.

How much will you receive?

Under the ANCHOR property tax relief program, homeowners are eligible for an average refund of $700 in fiscal year 2023.

The money will be used to offset property tax costs.

The reduction aims to bring the effective average property tax cost back to 2016 levels for many households that were previously ineligible for property tax relief.

The governor is also proposing a three-year increase for ANCHOR.

By fiscal year 2025, property tax rebates granted under the program would increase to an average of $1,150 per eligible household.

Who is Eligible?

Homeowners making up to $250,000 per year are eligible for the average $700 rebate.

Renters earning up to $100,000 per year are eligible for a rebate of up to $250 to cover the cost of rent increases due to property taxes.

However, it is not yet confirmed how people can claim the payments.

Gov. Phil Murphy said in a statement: “Although the state does not establish property taxes, we believe we must take steps to help offset the costs and make life in New Jersey more affordable.

“Through the ANCHOR Property Tax Relief Program, we can provide real support to families and seniors and help them stay in the homes and communities they love.”

Where does the money from property taxes go?

Property taxes are used by local governments to enable them to provide certain public services.

The amount of money used for these services depends on where you live.

Some of the main areas are:

  • Public schools
  • parks
  • Public swimming pools
  • streets
  • Emergency services: police, fire brigade, ambulance
  • local government

Other local factors may increase property taxes, such as: B. Road repairs, the construction of a new school or an increase in your local government’s budget.

If sales tax revenue falls in your area, your local government can increase property taxes to offset the loss.

The Sun explains four things homebuyers need to know before making an offer.

Also, the story of a couple who tried to sell their house only to find they only own half the garden.

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https://www.the-sun.com/money/4821405/americans-payments-new-program-new-jersey-property-tax/ Around 1.8 million Americans will receive up to $700 in payments under the new program

Caroline Bleakley

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