Bill Text: NJ A5190 | 2026-2027 | Regular Session | Introduced
Bill Title: Requires benefits under certain State property tax relief programs to be provided as credits and requires tabulation of credits and deductions be included on property tax bills.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced) 2026-06-01 - Introduced, Referred to Assembly State and Local Government Committee [A5190 Detail]
Download: New_Jersey-2026-A5190-Introduced.html
Sponsored by:
Assemblyman DAVID BAILEY, JR.
District 3 (Cumberland, Gloucester and Salem)
Assemblywoman MARISA SWEENEY
District 25 (Morris and Passaic)
SYNOPSIS
Requires benefits under certain State property tax relief programs to be provided as credits and requires tabulation of credits and deductions be included on property tax bills.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning payment of benefits under certain State property tax relief programs and amending various provisions of statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 15 of P.L.2024, c.88 (C.54:4-8.63a) is amended to read as follows:
15. a. Notwithstanding the provisions of any other law to the contrary, after the effective date of P.L.2024, c.88 (C.54:4-8.75p1 et al.), ANCHOR rebates shall be paid to eligible claimants on or before September 15 of each tax year annually[, whether such rebates are to be paid by check, direct deposit, or] as a credit on the eligible claimant's property tax bill.
b. In the case of an eligible claimant whose homestead is a unit in a cooperative, mutual housing corporation, or continuing care retirement community, the credit shall be paid as a credit on the property tax bill of the cooperative, corporation, or community where the eligible claimant's homestead is located. A cooperative, mutual housing corporation, or continuing care retirement community that receives a credit on behalf of an eligible claimant pursuant to this section shall provide the amount of such credit as a credit against any charges imposed by the entity on the eligible claimant for the share of property taxes attributable to the eligible claimant's unit.
(cf: P.L.2024, c.88, s.15)
2. Section 4 of P.L.1997, c.348 (C.54:4-8.71) is amended to read as follows:
4. a. The director shall administer the homestead property tax reimbursement program. A payment for the homestead property tax reimbursement amount, as calculated by the director, shall be paid, by [check, direct deposit, or] a credit against the eligible claimant's property tax bill to each person determined by the director to be an eligible claimant pursuant to P.L.1997, c.348 (C.54:4-8.67 et seq.) or a credit against the property tax bill of a cooperative, mutual housing corporation, or continuing care retirement community in which the eligible claimant's homestead is located, as the case may be, and shall be made according to the following schedule:
(1) for applications received on or before May 1 of the tax year, the reimbursement amount shall be paid on or before July 15 of that tax year; and
(2) for applications received on or after May 1 of the tax year, the reimbursement amount shall be made on a rolling monthly basis.
b. All payments made pursuant to this section shall be appropriated from receipts in the Casino Revenue Fund.
c. A cooperative, mutual housing corporation, or continuing care retirement community that receives a property tax credit on behalf of an eligible claimant pursuant to this section shall provide the amount of such credit as a credit against any charges imposed by the entity on the eligible claimant for the share of property taxes attributable to the eligible claimant's unit.
(cf: P.L.2024, c.88, s.18)
3. Section 5 of P.L.2023, c.75 (C.54:4-8.75e) is amended to read as follows:
5. a. (1) The State Treasurer, upon certification of the director and upon warrant of the Director of the Division of Budget and Accounting, shall pay and distribute, on a quarterly basis, beginning February 1, 2026, the amount of a Stay NJ property tax credit payable under P.L.2023, c.75 (C.54:4-8.75a et al.) that is claimed for the tax year by [check or direct deposit payable to the eligible claimant or by] a credit against the property tax bill of the eligible claimant or, in the case of an eligible claimant whose homestead is a unit in a cooperative, mutual housing corporation, or continuing care retirement community, a credit against the property tax bill of the cooperative, corporation, or community, payable to the tax collector of the municipality in which each eligible claimant [whose credit is approved by the director] is located[, provided, however, a credit due to an eligible claimant who claimed a Stay NJ property tax credit pursuant to section 3 of P.L.2023, c.75 (C.54:4-8.75c), and whose homestead is a unit in a cooperative, mutual housing corporation, or continuing care retirement community, shall be paid directly to the eligible claimant by the State Treasurer by check or direct deposit. In any year that the director determines that a Stay NJ payment shall be made as a credit, a]. A Stay NJ property tax credit allowed by the director [to an eligible claimant who claimed a Stay NJ property tax credit pursuant to section 3 of P.L.2023, c.75 (C.54:4-8.75c), and whose homestead is not a unit in a cooperative, mutual housing corporation, or continuing care retirement community,] shall be paid by the State Treasurer through electronic funds transfer made by the director to the local property tax account maintained by the local property tax collector for the homestead of an eligible claimant, or for the cooperative, mutual housing corporation, or continuing care retirement community in which the eligible claimant maintains a homestead, as the case may be, as the eligible claimant shall identify, in four equal installments after the application for the credit has been approved. The State Treasurer shall pay and distribute Stay NJ property tax credit payments to each municipal tax collector [or eligible claimant, as applicable,] on a quarterly basis at least 10 days prior to the statutory due date for each property tax year quarter payment. Notice of payments of Stay NJ credit installments shall be provided to the eligible claimant and the appropriate local tax collector.
(2) [Notwithstanding the provisions of this section to the contrary, for the first year in which the Stay NJ property tax program is implemented, each Stay NJ property tax credit awarded an eligible claimant shall be paid and distributed by check or direct deposit.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
b. Each municipal tax collector who applies a Stay NJ property tax credit to the property tax account of the homestead of an eligible claimant [pursuant to this section] or to the property tax account of a cooperative, mutual housing corporation, or continuing care retirement community in which the eligible claimant maintains a unit as a homestead, as the case may be, shall provide timely notice thereof to the eligible claimant and to any mortgagee or servicing organization noted on the property tax account that requires a mortgagor to make property tax payments to an escrow account, for the purpose of encouraging the escrow account property tax requirements to be promptly adjusted to the benefit of the property tax taxpayer on account of Stay NJ property tax credit payments.
c. A cooperative, mutual housing corporation, or continuing care retirement community that receives a property tax credit on behalf of an eligible claimant pursuant to this section shall provide the amount of such credit as a credit against any charges imposed by the entity on the eligible claimant for the share of property taxes attributable to the eligible claimant's unit.
(cf: P.L.2024, c.88, s.4)
4. Section 11 of P.L.2024, c.88 (C.54:4-8.75p1) is amended to read as follows:
11. a. After the effective date of P.L.2024, c.88 (C.54:4-8.75p1 et al.), the Director of the Division of Taxation in the Department of the Treasury, in consultation with the Director of the Division of Local Government Services in the Department of Community Affairs and local officials, shall develop a process to implement a property tax credit for the payment of benefits under the homestead property tax reimbursement program and the Stay NJ property tax credit program. As a part of that process, the Director of the Division of Taxation shall collect information from local officials regarding how to effectively implement property tax credits in future years for those programs. The collection of such information may include, but shall not be limited to, the administration of a standardized survey data collection instrument.
b. [Notwithstanding the provisions of subsection a. of this section regarding the development of a process for implementing property tax credits, the Director of the Division of Taxation shall also determine the feasibility of allowing eligible claimants for homestead property tax reimbursement and Stay NJ property tax credits to choose to continue to receive annual checks or direct deposits into a bank account instead of a property tax credit.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
(cf: P.L.2024, c.88, s.11)
5. R.S.54:4-65 is amended to read as follows:
54:4-65. a. The Director of the Division of Local Government Services in the Department of Community Affairs shall approve the form and content of property tax bills.
b. (1) Each tax bill shall have printed thereon a brief tabulation showing the distribution of the amount raised by taxation in the taxing district, in such form as to disclose the rate per $100.00 of assessed valuation or the number of cents in each dollar paid by the taxpayer which is to be used for the payment of State school taxes, other State taxes, county taxes, local school expenditures, free public library taxes, and other local expenditures. The last named item may be further subdivided so as to show the amount for each of the several departments of the municipal government. In lieu of printing such information on the tax bill, any municipality may furnish the tabulation required hereunder and any other pertinent information in a statement accompanying the mailing or delivery of the tax bill.
(2) When a parcel receives a homestead property tax credit pursuant to the provisions of P.L.2007, c.62 (C.18A:7F-37 et al.), the amount of the credit shall be included with the tax calculation as a reduction in the total tax calculation for the year. One-half of the amount of the credit shall be deducted from taxes otherwise due for the third installment and the remaining one-half shall be deducted from taxes otherwise due for the fourth installment.
(3) There shall be included on or with the tax bill the delinquent interest rate or rates to be charged and any end of year penalty that is authorized and any other such information that the director may require from time to time.
(4) In municipalities wherein a property tax reward program is operational, there shall be included on or with the tax bill the amount of the property tax reward as a credit against property taxes due and payable by a property owner who participates in the program. The property tax reward program shall be identified on the tax bill as the source of the property tax credit.
(5) Each tax bill shall have printed thereon a brief tabulation showing the amount, if any, by which the taxpayer's bill was reduced due to any credits or deductions received under the following programs:
(a) the ANCHOR Property Tax Relief Program authorized pursuant to sections 2 through 10 of P.L.1990, c.61 (C.54:4-8.58 through C.54:4-8.66) and sections 3 and 14 through 16 of P.L.1999, c.63 (C.54:4-8.58a and C.54:4-8.66a through C.54:4-8.66c);
(b) the Homestead Property Tax Reimbursement Program authorized pursuant to P.L.1997, c.348 (C.54:4-8.67 et seq.);
(c) the Stay NJ Property Tax Credit Program authorized pursuant to P.L.2023, c.75 (C.54:4-8.75a et al.);
(d) the veterans property tax deduction authorized pursuant to P.L.1963, c.171 (C.54:4-8.10 et seq.); and
(e) the senior and disabled persons property tax deduction authorized pursuant to P.L.1963, c.172 (C.54:4-8.40 et seq.).
c. The tax bill shall also include a statement about the availability, on the Internet website of the Department of Community Affairs, of the amounts of State aid and assistance received by the municipality, school districts, special districts, free public libraries, county governments that offset property taxes that are otherwise due on each parcel, along with a statement about the availability, on the Internet website of the Division of Taxation in the Department of the Treasury, of a listing of, and eligibility requirements for, the various State property tax relief programs. The tax bill shall also include the links to the Internet websites of the Department of Community Affairs and the Division of Taxation containing this information. The director shall cause the amounts of said State aid and assistance that shall serve as the basis for the calculation for each parcel to be displayed on the Internet website of the Department of Community Affairs. The director shall set standards for the display of the statement on the tax bill.
d. The tax bill or form mailed with the tax bill shall include thereon the date upon which each installment is due.
e. If a property tax bill includes in its calculation a homestead property tax credit, the bill shall, in addition to the calculation showing taxes due, either display a notice concerning the credit on the face of the property tax bill or with a separate notice, with the content and wording as the director provides.
f. (1) At the sole discretion of the municipality, the tax bill may also include a statement listing the number and type of shared services entered into by the municipality, the dollar value of the savings to the municipality from each of those shared services, and a total amount of municipal savings resulting from those shared services. The statement shall be in a format promulgated by the Director of the Division of Local Government Services in the Department of Community Affairs pursuant to paragraph (2) of this subsection.
(2) On or before the first day of the third month next following the enactment of P.L.2019, c.393, the Director of the Division of Local Government Services in the Department of Community Affairs shall promulgate the format for the shared services statement permitted to be placed on the tax bill by a municipality pursuant to paragraph (1) of this subsection.
(cf: P.L.2021, c.99, s.3)
6. This act shall take effect immediately and shall apply to property tax relief benefits distributed on or after the date of enactment.
STATEMENT
This bill requires the payment of benefits under certain State property tax relief programs to be provided as credits on an eligible claimant's property tax bill. In addition, the bill also requires the amount of all property tax credits and deductions to be printed on a taxpayer's property tax bill.
Currently, the State provides property tax relief through three major programs: the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program; the Homestead Property Tax Reimbursement Program, more commonly referred to as the "Senior Freeze"; and the Stay NJ Property Tax Credit (Stay NJ) Program.
The ANCHOR program provides rebates to eligible claimants between $1,000 and $1,750, depending on the extent to which certain age, income, and property requirements are met. Generally, eligible claimants who are age 65 or older, that have a New Jersey gross income of $150,000 or less, and are homeowners, will qualify for higher rebate amounts, while those claimants who are age 64 or younger, have a New Jersey gross income of $150,000 or less, and are renters qualify for lower rebate amounts.
The Senior Freeze program provides eligible claimants who are either age 65 or older or disabled and who meet certain income and residency requirements with an annual property tax reimbursement representing the difference between the amount of property taxes paid for the year in which a reimbursement is sought and the amount of property taxes paid during the claimant's initial year of eligibility.
In addition to these two programs, the State recently established the Stay NJ program to provide eligible senior citizen claimants with a property tax credit in the amount of 50 percent of the property tax billed to their principal residence during the prior tax year, up to a certain amount. For tax year 2026, the first year of the program's implementation, the maximum amount to be credited to eligible claimants is set at $6,500, with adjustments to be made in subsequent tax years based on the annual percentage increase in the Statewide average residential property tax bill. The credit would be calculated in a manner that first takes into consideration the amounts a claimant may receive as an ANCHOR rebate and Senior Freeze reimbursement respectively before calculating the amount to be provided as a Stay NJ property tax credit.
Under both the ANCHOR program and the Senior Freeze, benefits are required to be paid by the Director of the Division of Taxation by either a check, direct deposit, or as a credit on an eligible claimant's property tax bill. Similarly, the director is also required to provide benefits under the Stay NJ program through those same means, except for the first year of the program's implementation, during which benefits are to be distributed by check or direct deposit.
The bill would require that benefits under each of these programs be provided by as a credit on the property tax bill for eligible claimants. In the case of an eligible claimant whose homestead is a unit in a cooperative, mutual housing corporation, or continuing care retirement community, the credit would be provided against the property tax bill of those entities and later remitted to the eligible claimant as a credit against any charges imposed by the entity on the eligible claimant for the share of property taxes attributable to the eligible claimant's unit.
The bill also requires all property tax bills to contain a brief tabulation showing the amount, if any, by which the taxpayer's bill was reduced due to property tax credits received under the ANCHOR, Senior Freeze, and Stay NJ programs, as well as the $250 property tax deductions provided for certain eligible veterans, seniors, and disabled persons.
