New ANCHOR Proposal is a Big Improvement, But More Needs to Be Done For Low-Income Families

The new ANCHOR proposal directs more property tax relief to renters, but more is needed to make the state affordable for low-income families.

Published on Jun 15, 2022 in Economic Justice, Tax and Budget

Today, Governor Murphy announced a new deal with legislative leadership to expand his ANCHOR Property Tax Credit proposal, which revises and expands the Homestead Benefit. The new proposal would include roughly 300,000 more renters earning between $100,000 and $150,000 in income, and expands credit amounts for both homeowners and renters. NJPP analyzed the Governor’s previous proposal in an April 2022 report, in which it recommended more funding to go towards renters and raised concerns about credits going to high-income families. In response to the new ANCHOR proposal, New Jersey Policy Perspective (NJPP) releases the following statement.

Peter Chen, Senior Policy Analyst, NJPP:

“The new ANCHOR proposal is a big improvement over the original as it directs more relief to renters, many of whom are facing historic rent increases and risk being priced out of their homes. Renters, on average, have lower incomes and less wealth than their home-owning peers. Renters also pay property taxes indirectly through their rent, so it’s only fair that they are included in property tax relief programs like this.

“While this proposal would provide historic relief to millions of residents, more must be done to make New Jersey affordable for those struggling the most to cover everyday costs. We hope that this proposal will be paired with more relief targeted to families living below or just over the federal poverty line. With a record-breaking surplus, state lawmakers can do just that by expanding the Earned Income Tax Credit and creating a new, state-level Child Tax Credit. Targeting relief to those who need it most is the only way to make New Jersey affordable for all.”

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