Gov. Phil Murphy unveiled details of a proposal he says will deliver $250 million in property tax relief directly to more than 2 million New Jersey tax filers.
The relief is contingent on passage of the so-called millionaire’s tax, which would increase the tax rate on those earning more than $1 million per year, approximately 18,000 in-state residents and 19,000 nonstate residents, according to the administration.
The proposal would deliver $250 million in additional tax relief in the form of a one-time, $125 refundable tax credit on 2019 Gross Income Tax returns.
Homeowners and renters with incomes of more than $20,000 ($10,000 if you are single or married and filing separately) and less than $250,000 would be eligible, according to a release from the Governor’s Office.
The credit would be in addition to other existing property tax relief programs — Homestead Benefit, Senior Freeze, Veterans’ Deduction and the increased Property Tax Deduction Cap — while impacting a much broader base.
An estimated 2,013,049 New Jersey income tax filers are expected to benefit, which represents roughly 46 percent of all resident returns, the administration said.
Murphy said the proposal should be a no-brainer.
“The math is pretty simple, as is the logic,” he said in the release. “This is about tax fairness. It’s about answering a simple question: ‘Whose side are you on?’ We stand with New Jersey’s hard-working middle-class, and those striving to join them.
“The budget we proposed is built on principles of strong fiscal stewardship and investing in core needs and middle-class property tax relief. The millionaire’s tax is how we ensure these principles for the long term.”
The likelihood of this relief package being implemented is questionable.
State Senate President Steve Sweeney (D-West Deptford) and others in the Legislature have said they will not pass any bill that includes a millionaire’s tax.