Requires benefits under certain State property tax relief programs to be provided as credits and requires tabulation of credits and deductions be included on property tax bills.

2026-2027 Regular Session Introduced by John Burzichelli

The bill requires delivering major property tax relief as on-bill credits with clear per-bill tabulations, extending uniform credit flow to entities when applicable.

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee

Overview

S 3970 (Session 222, New Jersey) seeks to reform how certain state property tax relief benefits are delivered and displayed. The bill requires that benefits from major property tax relief programs be issued as credits on eligible claimants’ property tax bills (rather than by check or direct deposit in some cases) and mandates explicit tabulations of credits and deductions on property tax bills.

Main purpose and intent

Ensure all eligible benefits under state property tax relief programs are provided as credits against the claimant’s property tax bill.

Increase transparency by requiring a concise, on-bill tabulation of credits and deductions for each parcel.

Extend uniform credit treatment to cases where the claimant’s homestead is located in a cooperative, mutual housing corporation, or continuing care retirement community (CCRC), with credits flowing to the entity’s bill and then applying as a credit against the claimant’s charges from that entity.

Key provisions and changes

ANCHOR rebates (P.L.2024, c.88) and Stay NJ property tax credits (P.L.2023, c.75) would be paid exclusively as credits on the eligible claimant’s property tax bill, starting after the act’s effective date. For claimants in cooperatives, mutual housing corporations, or CCRCs, the credit is applied to the entity’s property tax bill and then credited back to the claimant’s charges from the entity.

Homestead Property Tax Reimbursement (Senior Freeze) program payments would be delivered as a credit against the claimant’s property tax bill, with the same cooperative/entity-credit flow-if applicable.

The bill retains a quarterly distribution framework for credits when applicable, and requires that the local tax collector process and post these credits accordingly.

Property tax bills must include:

a brief tabulation showing how each tax bill was reduced by credits/deductions from various programs (ANCHOR, Senior Freeze, Stay NJ) and any veterans/senior/disabled deductions.
a notice of these credits and related State aid/assistance information, including links to relevant state websites.
the payment due dates for installments.
a potential optional “shared services” statement format subject to regulatory promulgation.

Affected programs explicitly listed for on-bill tabulation: ANCHOR, Homestead Property Tax Reimbursement, Stay NJ, veterans deduction, and senior/disabled deductions.

Who would be affected

Eligible property owners and lessees receiving ANCHOR rebates, Stay NJ credits, and Senior Freeze reimbursements.

Cooperatives, mutual housing corporations, and CCRCs housing claimants whose homesteads are located within those entities.

Municipal property tax collectors and local housing/tax administration staff responsible for applying credits, notifying mortgagees, and updating escrow accounts.

Taxpayers who will see a consolidated, on-bill breakdown of credits and deductions.

Procedural and timeline aspects

Effective date: immediate, with applicability to property tax relief benefits distributed on or after enactment.

Payment and administration timing align with existing quarterly or monthly distribution schedules, with a shift toward credit-based payments where feasible.

The bill specifies reporting and display requirements on tax bills and on related state websites, reinforcing transparency.

Note: The bill’s text also references an older Stay NJ provision and grandfathered/updated elements from prior statutes, integrated to standardize credit treatment across programs.