Assembly Speaker Craig Coughlin’s “StayNJ” plan initially proposed a 50% credit on property taxes for all seniors. But after critics — including Gov. Phil Murphy — called it a benefit for even the richest homeowners, Trenton’s top three Democratic lawmakers reached a compromise to cap the tax credit at $6,500 instead of $10,000 for homeowners age 65 and over who earn $500,000 or less.
Some advocates applauded the latest compromise plan from Democrats to cut property taxes in half for New Jersey seniors. Even though it’s a reduced benefit with an income cap, “StayNJ” is still aimed at shielding people on fixed incomes from onerous bills that would force them from their homes. And though it would not kick in until 2026, the revised measure now includes renters, said AARP’s Evelyn Liebman. “With an income cap, more resources could be directed to our renters,” Liebman said.
“So it’s definitely less regressive than the original proposal, but it still has the same fundamental flaws as the original proposal,” said Peter Chen of New Jersey Policy Perspective, as budget analysts keep revising state revenues estimates downwards.
Micah Rasmussen, director of the Rebovich Institute for New Jersey Politics at Rider University, sees a well-worn New Jersey political tactic that’s brazen but effective as all 120 legislative seats go on the ballot in a low-turnout election in November. “You’re not just saying you’re getting a credit,” he explains. “You’re saying, we’re cutting your property taxes in half. That’s a powerful rhetorical talking point … And so I expect it to have an impact.”
Republican Sen. Mike Testa (R-Cumberland), said, “This is nothing more than an election-year gimmick in an effort to try to, you know, essentially purchase votes. And we all know the money might not be able to be there in three years.”
