StayNJ clears Senate committee unanimously; Assembly vote yet to come

StayNJ, a property tax relief program for New Jersey seniors spearheaded by the legislature’s Democratic leaders, passed the Senate Budget and Appropriations Committee on a unanimous vote today; the Assembly Budget Committee has yet to take up the bill, and may wait until tomorrow to do so.

Under the provisions of the program, New Jerseyans over 65 making less than $500,000 a year would, beginning in 2026, receive a tax credit worth 50% of their property tax bill, with a maximum credit of $6,500. In the meantime, senior homeowners and renters would both get an extra $250 a year under the state’s pre-existing ANCHOR program.

“This is a game changer for New Jersey’s seniors who are getting squeezed by escalating expenses,” Senate President Nick Scutari (D-Linden) said in a statement. “It will provide significant tax relief that will make the state more affordable to live, work and retire. Reducing the burden of property taxes will give senior citizens the financial security they need to remain in New Jersey, where they built their lives.” 

The bill is the product of negotiations between Gov. Phil Murphy, Scutari), and Assembly Speaker Craig Coughlin (D-Woodbridge), who was the bill’s original proponent.

Coughlin’s initial proposal was met with intense opposition from Murphy, who said it was fiscally irresponsible and threatened to shut down the government to stop it. But after a number of amendments were made – including adding an income cap, creating a commission to oversee the program’s implementation, and adding a provision stating that full pension payments must take precedence over the program – Murphy changed his tune.

Though many of them voted for it today, Republicans have pushed back on many parts of the program, particularly the fact that payments won’t begin until 2026. If the political winds change between now and then, they argue, there’s a good chance seniors will never see the benefits Democrats are promising them.

“In 2026, there will be an entirely new [gubernatorial] administration that may be left holding an empty bag,” State Sen. Michael Testa (R-Vineland) said. “There may not be any money to give to the taxpayers for any form of taxpayer property tax relief. I just don’t understand why we can’t do this now.”

In the Senate committee meeting, Republican senators proposed an amendment to provide more immediate relief, a procedural move that unusually garnered the support of a Democrat, State Sen. Andrew Zwicker (D-South Brunswick). The rest of the Democrats on the committee voted it down, however, and the bill proceeded unchanged.

A vote on the broader state budget in both chambers is still to come. Assembly Budget Committee Chair Eliana Pintor Marin (D-Newark) said that her committee might hold off a vote on StayNJ to align with a vote on the budget – which may mean delaying until tomorrow.