More than 2 million New Jersey homeowners and renters could see more property tax cuts ($ 2 billion total) as the government next year. Phil Murphy And his fellow Democrats, who lead the legislature, appear to be approaching an agreement on a state budget for the new fiscal year beginning July 1.
State Senate Chair Nicholas StariD-Union, and assembly speakers Craig CofflinD-Middlesex joined Murphy on Wednesday to announce the expansion of the property tax relief initiative included in the Governor’s $ 48.9 billion budget.
“Through this time, we have brought to the fore one thing to make New Jersey more affordable,” Murphy said. In the parking lot of South Brunswick City Hall..
“Today we are offering historic tax cuts,” Murphy added. “We keep our promise to make New Jersey more affordable for the middle class and working families.”
Murphy Announcing a new programCalled ANCHOR in early March, the first proposal was an average rebate of up to $ 1,150 for homeowners under $ 250,000 in New Jersey, and $ 250 for lessors up to $ 100,000. Check was included.
State leaders on Wednesday said these rebates would increase homeowners up to $ 1,500 and lessors up to $ 450, bringing the total cost of the initiative to $ 2 billion. The enhanced program will extend property tax relief to more than 1.1 million New Jersey homeowners and approximately 900,000 lessors in the state.
Authorities said they would invest fully in the program as soon as it was implemented, which would raise Murphy’s next year’s spending proposal to $ 50 billion, more than 30% higher than the 2019 state budget. ..
The announcement is more than a month after Coughlin issued a statement calling for “the largest tax exemption program in state history” due to an unprecedented revenue renewal. State Treasury officials told parliamentarians in May that the state is expected to squeeze in a record tax revenue plunge of nearly $ 10 billion.
The updated ANCHOR initiative has not reached the largest tax exemption program in state history. This is what Coughlin admitted on Wednesday. But this is historic and the largest since 2008, when former Democratic Governor Jon Corzine implemented a $ 2.2 billion property tax relief program.
However, Coughlin insisted that “there is much more to come.”
The speaker told reporters that after the event, he was exposed to the sun outdoors and went without wearing a blue suit and socks.
The program adds a significant amount to Garden State’s annual expenses when economists and budget experts warn that the US economy is facing an imminent slowdown and New Jersey is approaching the fiscal cliff.
of Report From the former Senate President Stephen SweeneyRowan University’s Sweeney Public Policy Center, a new think tank in New Jersey, said a committee of budget experts said that New Jersey’s tax revenues are billions of dollars below what the state needs to maintain government services over the next five years. Said that it was expected.
Parliamentarians this year, with repeated warnings from analysts that they need to be careful when negotiating the state budget, the Murphy administration and the state Senate budget chairman Paul Salo and D-Bergen demand the largest surplus in state history. I came to do it.
The ANCHOR program requires final approval of the Democratic-controlled state legislature. This can be 15 days before the budget deadline.
In a statement, Scutari, Sarlo, and Senate majority leaders Teresa Ruiz and D-Essex “fully support” the plan, but “consider additional measures to reduce tax burdens.” I have. “
In a joint statement after Murphy’s announcement, “We have a unique opportunity to leverage our financial resources to achieve tax exemptions and make strategic investments in the future.” “Current budgeting can have a transformative impact on New Jersey. It is important to take advantage of this unique opportunity for effective and sustainable tax savings and investment.”
Murphy told reporters on Wednesday that he “has not downplayed this measure,” and he and lawmakers are planning a “significant” surplus and debt in their budget. “”
We have defeated the hatch and hope to be in harsh waters in the not too distant future. It’s a strange moment in our economy, “said the governor. “I’m only looking at part of my budget today. Please be patient.”
At the same time, business leaders criticized Murphy for not including the business and claimed to pay nearly half of the state’s property tax.
By omitting this ongoing bailout for companies that continue to struggle after the pandemic with rising inflation, fuel costs, and labor issues, policymakers will be quicker to create jobs as this budget cycle nears the end. Bringing affordability is even more essential. Michele Sikkelka, chairman of the New Jersey Chamber of Commerce, said in a statement Wednesday.
Murphy claimed that his administration had allocated more than $ 900 million to small businesses in recent years following the coronavirus pandemic, implying that businesses have more money in the new state budget.
“Look forward,” the governor told reporters. “SME bailouts continue to be our hallmark.”
Meanwhile, Senate Republicans said Wednesday they would seek a motion to vote on their proposal to rebate $ 1,500 against 4 million households in the state during a voting session on Thursday at the State Capitol in Trenton. ..
Senator Stephen Orojo of R-Sussex said their plans were sluggish in a Democratic-run parliament, rising inflation was pushing up food costs, and finances, while gas prices continued to set new records. The provincial overcollection of taxes is almost bloated at $ 9 billion. “
However, because Congress is controlled by the Democratic Party, it will approve Murphy’s plan for the Republican Party, with the exception of certain members.
Murphy and lawmakers will take a little over two weeks to pass the proposal and come up with a final state budget by the constitutional deadline of June 30. Both the Governor and MPs met that day and expressed optimism that they would avoid the closure of the state government.
“Plan for July 1st,” Murphy told reporters Wednesday.
NJAdvanceMedia Staff Writer Matt Arco Contributed to this report.
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