Credit: (AP Photo/Seth Wenig)

Rising inflation may help more of New Jersey’s senior and disabled homeowners qualify for hefty property-tax relief benefits and state officials have been urging them to take a new look at the eligibility requirements before it’s too late.

The deadline to file an application for the state’s “Senior Freeze” relief program — which each year provides thousands of senior and disabled homeowners with checks averaging more than $1,000 — is Monday.

For years, language written into the state budget limited those who could qualify for the state-funded relief checks to people making not more than $70,000 annually and who also met the program’s residency requirements.

But a key policy change enacted in Trenton several years ago restored annual cost-of-living adjustments to that limit. With inflation now steadily rising, the income ceiling has gone up by more than 30% since 2017, to just over $94,000 for the 2021 tax year.

More people eligible

In the wake of the latest adjustment, state Treasurer Elizabeth Maher Muoio said she is encouraging residents to “check out the eligibility requirements” since the increased income limits have “made many more people eligible in recent years.”

“For those living on a fixed income, it can make all the difference,” Muoio said in a recent news release.

And while the state this year has rolled out an altogether new property-tax relief program called “Anchor” that will also distribute checks of at least $1,000 to many homeowners, it does not supplant Senior Freeze. State officials have confirmed those who meet all the eligibility requirements will be able to collect benefits from both programs, providing another reason to fill out applications.

The Senior Freeze program, officially called Property Tax Reimbursement in state tax law, provides state-funded reimbursement checks to offset increases in property taxes once a homeowner becomes eligible for the program in what’s known as their “base year.”

Who qualifies?

To qualify for the program, which started in 1997, homeowners must be at least 65 years old or have a disability and be at least a 10-year resident of the state. They also must have owned their residence for three years, be up to date on their property taxes, and have incomes that fall within the program’s limits for the last two years.

Under allocations for the program in recent state budgets, including in the 2023 fiscal year spending plan adopted earlier this year, the income limits for 2020 and 2021 were set at $92,969 and $94,178, respectively.

‘Residents eligible for both Anchor and Senior Freeze may apply for both programs in the same filing year.’ — Danielle Curry, Department of Treasury

An estimated 28,970 senior and disabled homeowners who are newly qualifying for Senior Freeze benefits this year will receive checks averaging $203, according to state budget documents. But the size of the average Senior Freeze check for an estimated 133,607 continuing recipients is expected to increase to $1,398 this year, according to the budget documents.

Under state law, the program’s annual cost-of-living adjustments are tied to increases for Social Security benefits that can be provided annually by the federal government. The regular adjustments of the Senior Freeze income limits ensure senior and other eligible homeowners can remain eligible for the state-funded property-tax relief during periods of high inflation when federal benefits are increasing at a high rate.

Over the last decade, the average New Jersey property-tax bill has increased by more than $1,500, before adjusting for inflation, to a record-high total of $9,284 last year, according to a recent NJ Spotlight News analysis.

Deadlines to apply

Muoio said the Senior Freeze program makes it easier for those who qualify for benefits to remain in their communities, where many have lived in the same home for decades.

“We encourage all eligible residents to take advantage of this important resource,” she said.

Meanwhile, the recent push to promote the Senior Freeze program and its pending application deadline has coincided with the state’s rollout of the Anchor program, which will provide relief checks as large as $1,500 to thousands of homeowners next year.

Homeowners making up to $250,000 annually are eligible for Anchor benefits, as are renters earning up to $150,000 annually. The application deadline for Anchor benefits is Dec. 30.

Gov. Phil Murphy and lawmakers designed Anchor to offset property-tax bills paid in 2019, instead of more recent levies. That means eligible homeowners can apply for both programs at the same time since Senior Freeze is designed to offset more recent tax bills.

“Residents eligible for both Anchor and Senior Freeze may apply for both programs in the same filing year,” Department of Treasury spokeswoman Danielle Currie said in a recent email.

“Senior Freeze applications are effective for the preceding filing year, and Anchor is based on data from three years prior,” Currie said.

You can find more information about Senior Freeze here, or call 1-800-882-6597.

And you’ll find more information about Anchor here, or call 1-888-238-1233.