If all goes as planned, New Jersey is scheduled to dole out $3.5 billion in property tax relief to residents in 2026, but so far, state leaders are setting aside less than 15% of the money that will be needed.in the state budget for the fiscal year that begins July 1, according to two sources familiar with negotiations.
Another source said they were surprised Coughlin aimed to stop the sales tax bump because that might have helped pay for Stay NJ. Another concern: The new budget has a surplus of 10%, but the Stay NJ law said it needs to be 12% for the program to launch. The worry is that number may be tough to get to next year as the state faces fiscal strain and uncertain tax revenue after years of big spending.One solution floated has been to pass a new law lowering the surplus threshold, but one source said the governor’s office is concerned that could trigger the state getting a credit downgrade from Wall Street.
While taxpayers would initially get checks, the Stay NJ payment would eventually be a credit directly on their tax bills.