NJ Anchor deadline: Two more days to apply for benefits

Friday is the final day to apply for the latest round of state-funded Anchor property-tax relief benefits that help offset local levies that now average close to $10,000 statewide.

So far this year, more than 1.2 million New Jersey homeowners have received Anchor benefits that total as much as $1,750 per eligible recipient, according to updated figures provided by the Department of the Treasury.

But hundreds of thousands of tenants who’ve also felt the burden of New Jersey’s sky-high property-tax bills indirectly through their monthly rent payments can also get Anchor benefits as part of the $2 billion relief program.

Last year, more than 600,000 tenants received Anchor benefits from the state, according to legislative budget documents. Tenant benefits total between $450 and $700 per recipient.

Trying to alert renters

So far this year, more than 560,000 renters have collected Anchor benefits worth a combined nearly $275 million, Treasury spokesperson Danielle Currie said.

Treasury’s Division of Taxation is emphasizing outreach to renters in the run-up to Friday’s application deadline.

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“The Division expects the final number of tenant recipients to be in line with or greater than last season,” Currie said.

Anchor’s formal title is the “Affordable New Jersey Communities for Homeowners and Renters” program.

Starting in 2022, Anchor replaced the state’s long-standing Homestead relief program. Homestead provided state-funded benefits, but only to homeowners in its latter years, and at smaller amounts than those currently offered under Anchor.

With Anchor, the return of state-funded relief benefits for tenants has come at an opportune time since it has coincided with a period of significant inflation that’s occurred in the wake of the COVID-19 pandemic.

The Murphy administration indicated in budget documents that it expects to provide benefits to nearly 1.3 million homeowners and more than 700,000 renters this year.

New Jersey consistently ranks among the top 10 U.S. states in studies that track the most expensive places for renters, with some cities, including Jersey City, often ranked among the most expensive ZIP codes in the nation for tenants.

And while the overall rate of inflation has moderated nationally in recent months, the price index for shelter, which includes costs related to residential rents, has continued to rise at a brisk pace, according to the latest data compiled by the federal government.

The Anchor years

Under language written into the state’s annual budget, Anchor benefits last year were tied to the 2020 tax year. The benefits were distributed last year to nearly 1.3 million homeowners and just over 602,000 renters, according to the legislative budget documents.

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This year, the latest round of Anchor benefits is based on the 2021 tax year. The Murphy administration indicated in budget documents that it expects to provide benefits to nearly 1.3 million homeowners and more than 700,000 renters this year.

For homeowners, benefits range from $1,000 to $1,750, depending on age and income.

For renters, the size of the benefit is $700 for seniors, and $450 for all other eligible recipients.

Criteria for tenant applicants

According to the Division of Taxation, tenants who are eligible for an Anchor benefit this year must meet the following requirements:

They were a New Jersey resident in 2021
Their 2021 New Jersey gross income was not more than $150,000
Their name was on the lease or rental agreement
They paid rent
They rented and occupied a residence in New Jersey that was their principal residence (main home) on Oct. 1, 2021
The rental property was subject to local property taxes

Anchor benefits are paid to eligible recipients via a check or direct deposit. So far this year, an estimated $2.1 billion has been distributed to eligible homeowners and renters, Currie said.

The deadline to file an application on Friday is midnight for those using the Division of Taxation’s online portal, and any application submitted by mail must be postmarked by Dec. 6, Currie said. Payments are issued on a rolling basis, generally within 90 days of filing an application.

For those needing last-minute assistance, the Division of Taxation is hosting an in-person filing event Friday from 2 p.m. to 8 p.m. at its regional information center in Trenton.

Additional information about the Anchor program, including a tool that can be used to check on the status of a previously filed application, is available here: https://www.nj.gov/treasury/taxation/anchor/.