Budgeting for New Jersey's Citizens Property Tax Relief at the Core

For the first time since Fiscal Year (FY) 2001, New Jersey's state budget does not rely on tax or fee increases. Gov. Jon S. Corzine signed a $33.47 billion state budget for FY 2008 that is committed to no new taxes, substantial tax relief and serious protection for the most vulnerable members of society.

"This Fiscal Year (FY) 2008 budget spends only what we can pay for, provides new efficiencies and savings, eschews the tricks and gimmicks of budgets past and upholds our commitments to the most vulnerable in our state and society," said Corzine.

Above all, the FY 2008 budget provides New Jersey citizens with considerable property tax relief. The budget reflects an increase of nearly $2 billion to the state's property tax relief programs and includes an additional $300 million in tax savings to businesses and working families.

Property Tax Relief

At the core of the budget is a $16.8 billion rebate dedicated to property tax relief for New Jersey homeowners and tenants. This figure represents almost half of the entire budget.

Corzine has allotted nearly $3 billion in direct relief for more than three million homeowner and tenant households. Accounting for the bulk of that $3 billion is the new $2.25 billion property tax relief program that was enacted in April. Under this program nearly two million families will receive an average rebate of $1,000. This triples what they received last year.

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Comments

  • That is dandy that our homestead reabte check will be posted as a credit to our tax bill. But how will we realize the money? My mortgage company pays my taxes. So my township will send the mortgage company a new bill with a lower tax amount? Though the mortgage should be lowered slightly because of the lowered tax amount, I will still have to pay the same mortgage bill with the excess money going into my escrow account? Eventually when my mortgage company recalculates my escrow balance which will probablly be in November or December, I may or may not realize the actual homestead reabte depending on whether or not my taxes increase the following year, causing a greater need for the money to remain in the escrow account?