NJ Gov. Murphy agreed to compromise on a property tax cut for seniors

New Jersey Gov. Phil Murphy and Democratic leaders in the state legislature have agreed to compromise on a property tax cut for seniors, paving the way for a deal on the budget due by the end of the month.

Murphy previously said he’d shut down the state government before coming to a compromise over the dramatic proposed tax cut.

 The compromise would cut property taxes by half for homeowners who are 65 years or older.  Assembly Speaker Craig Coughlin, D-Woodbridge, is sponsoring a bill that would restrict the tax cut to  $10,000. The new agreement would lower the cap on the tax cut to $6,500, but that would rise as property taxes rise in future years. 

So that means someone who pays $13,000 in property taxes or less would get the entire reduction. Those who pay more property taxes would get the maximum of $6,500. 

We’ll ask Murphy whether this goes far enough to fix New Jersey’s property tax system. And we’ll find out what other sticking points might prevent a budget deal by the June 30 deadline.