In 2021, qualifying homeowners earning less than $150,000 will receive a tax credit of $1,500, while those earning between $150,000 and $250,000 will receive a tax credit of $1,000. Renters with earnings up to $150,000 will receive a $450 direct check.
This year, the programme comprised a considerable portion of the state budget. Despite Republican claims that the policy will not go far enough, Democrats argue that it will boost state affordability.
A little more than half of the state’s expected two million eligible people have already submitted applications, according to the Murphy Administration. The application deadline for persons participating in a Payment in Lieu of Taxes (PILOT) scheme was pushed back from October to January by state officials.
Assemblyman Roy Freiman (D-Somerset) highlighted, as mentioned in a blog post by Whyy, that historically it has been difficult to generate public awareness of innovative initiatives such as ANCHOR.
According to Freiman, “It is brand new, it is new in scope, and I believe it takes time for people to become aware of something that is passed in the budget at the end of June and has a deadline in October.” “We want to ensure that the reimbursement checks are issued as quickly as feasible.”
ANCHOR Property Tax Relief Application For New Jersey Residents
Peter Chen, a policy analyst at the New Jersey Policy Perspective (NJPP), remarked that the application process for tax credit schemes such as ANCHOR can be time-consuming and confusing. He is concerned that this may discourage some applicants.
Chen stated that the more difficult it is for individuals to get a benefit, the more requirements are required to participate in a programme, as compared to automatic, universal, or automated services. The concentration among higher income groups “occurs more frequently”
Although Chen emphasised that fewer paperwork boosts access to property tax benefits, it results in a lengthier application processing time. Chen proceeded by stating that the infrastructure of New Jersey’s tax system may not be able to accommodate a major rise in applications or application-related queries.
According to Chen, the unpleasant reality is that individuals who regularly struggle to make ends meet have the least time, energy, and capacity to call and wait on hold to find out if they qualify.
The Democrats want to begin issuing refund checks to citizens in the spring of 2023. The state has established a hotline for ANCHOR-related questions at 1-888-238-1233. The Division of Taxation maintains a list of commonly asked questions on its website.