AARP NJ is Advocating for Expanded and Equitable Property Tax Relief

PROPERTY TAX RELIEF
New Jersey’s highest in the nation property taxes are not affordable for older residents trying to make ends meet on fixed, low and moderate incomes. New Jersey is home to 1.6 million Social Security beneficiaries, with a quarter relying on Social Security for 90% of their income. The average Social Security income in New Jersey is just over $20,000, while the average property tax bill in New Jersey is about $9,500.

According to a recent AARP poll, 42% of New Jersey homeowners and 36% of renters 50 and older have considered fleeing the state due to property taxes. New Jersey voters 50 and older say property taxes are the most difficult household expense to pay each month.

In fact, the report finds that 28% of homeowners 50 and older say their mortgage payment is 40% or more of their monthly income before taxes, and 43% of renters say their rent payment is 40% or more of their monthly income before taxes. The financial burden on renters represents a real equity issue in New Jersey. Renters, who indirectly pay property taxes, are more likely to be low-income, single, separated, divorced or widowed.

AARP strongly supports the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) Program, which delivers relief for homeowners and renters. AARP New Jersey has long advocated for proposals that provide equitable, cost-effective and targeted property tax relief to those most burdened by their property tax bills, which often include historically marginalized communities.

AARP supports S1501/A3270 and S259/A216
Converts the Senior Freeze reimbursement into a credit, where eligible participants pay a lower property tax upfront instead of receiving money back at the end of the year. Eighty percent of New Jersey voters 50 and older support converting the Senior Freeze to a credit.

S1024/A2853
Increases gross income tax credit for homestead property taxes paid from $50 to $200.

S343/A1148
Increases, from 18 percent to 30 percent, amount of rental payments defined as rent constituting property taxes for purposes of deduction from gross income for property tax payments. AARP recommends this bill be converted to a fully refundable credit to provide assistance to our lowest income residents who may not need to file tax returns, but are paying property taxes through their rent.

For more information on AARP New Jersey’s advocacy priorities, visit aarp.org/NJAdvocacypriorities.