Gov. Phil Murphy and Democratic legislative leaders have agreed to the framework on a deal to fund Assembly Speaker Craig Coughlin’s Stay NJ senior citizen property tax relief plan, the New Jersey Globe has confirmed from multiple sources briefed on the compromise.
The compromise creates a clear path for the legislature to pass a budget before the end of the month.
Under an agreement worked out on Friday and over the weekend between Murphy, Coughlin, and Senate President Nicholas Scutari have agreed to a tax credit for New Jerseyans over age 65 of 50% of property taxes capped at $6,500 annually – different than the $10,000 cap initially proposed – and will not apply to families with an income over $500,000.
Specific language for the bill is still being worked out, but that is expected to include commitments to fulfill pension payments and K-12 public school funding.
Renters will also receive a tax credit under the structure agreed upon by Murphy and the Democratic leadership.
While StayNJ is expected to take effect in January 2026, the agreement calls for an immediate boost to property tax relief under the current Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program that will increase property tax relief by $250 for seniors and renters.
The $6,500 cap will be indexed based on property tax increases rather than creating a flat maximum number.
StayNJ will include a lock box to set aside nearly half of the $1.2 billion needed to fund the tax cut plan: $100 million in year one, $200 million in year two, and $300 million in year three.
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