OT: Property tax relief coming for those over 65
- Thread starter retired711
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Gramps can move to South Carolina if he wants to save $. If he wants to retire in NJ he needs to understand all the “benefits” he gets like access to NYC, AC, Philly, the shore, the great mountains of Sussex County where gramps can hike the trails ( after an hour drive) etc. This is kind of like reverse ageism.
If you are a public school teacher you cannot cash in your pension while working.
You have a restricted lump sum option when you retire but even that you can’t take the funds and invest them somewhere else.
If you quit teaching and remove yourself from the pension you can get that cash but staying in the pension is probably better unless you’re tier 5.
Your fact situation assumes the seniors are all in Saddle River and the dude making $20./hr can even swing the down payment and the .mortgage. A lot of seniors may be sitting on hundreds of thousands, but may be home equity. You going to force them to move SC to tap into it? Want to lower the income limits to qualify? Fine. But this does not affect the "working class dude" buying in any way.
I've left public education for private school. So I have some options to play with.
I'm not tier 5, but I am vested.
My initial plan is leave my vested pension alone, dump money into my new matching plan, and continue to fund my other retirement options and just be diversified. I'm a long time from retirement though.
The legislature has just expanded the Senior Freeze program, which reimburses seniors for increases in property taxes over the "base year." The income limit used to be $100,000 -- it is now $150,000. The "base year" is the year of first eligibility, so I assume this means that seniors within the income limit will be reimbursed for future increases in property taxes. Note that this program and Stay New Jersey are conditioned on the state maintaining a specified level of surplus and on other requirements (I think full funding of state pensions is one of them.)
Paterson school closing due to safety concerns after ceiling collapse last month
Built in 1899, the Public School No. 3 building in Paterson is over 100 years old and "will need abatement in order to become usable again."
newjersey.news12.com
NJ has one of the strongest economies in America. Murphy is over 50% approval.
Cry more and move to a state with banned books and AP class, tons of violence and no freedom. You have your pick in the former Confederacy.
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www.cnbc.com
So strong people over 65 need tax relief.
Who will pay the offset? People under 65.
Unlike @NotInRHouse, I sympathize with your position -- even though I, as a "senior" (I hate that word; are young people called "junior citizens?") will benefit. The only defense I can give is that the relief is contingent on the continuation of a large budget surplus here in New Jersey, and that, because the credit comes from the state, it will not cause increases in local property taxes. TBH, I think the surplus will not continue for very long, and so the program may be of limited duration.
Isn't the state billions in the hole on pensions?
Any surplus is probably creative accounting.
The state claims to now be making the contribution called for by its actuaries. That is supposed to continue. The size of the hole depends on how the stock market does.
There is indeed a "funny money" component to the surplus. The Covid aid packages gave Federal money to the states to make up for a predicted drop in state tax revenues due to Covid. But the states did just fine, and now have money to spare. I doubt that will continue.
As you know I'm far south of 65, but also realize most people over 65 don't work. Or at least shouldn't be.
You're right . . .but an increasing number of Americans over 65 work. In 2000, less than a quarter of those over 65 worked; now it's over a third. At the same time, the percentage over 16-19 years who work has declined. Those over 65 are actually more likely to have jobs than those aged 16-19. https://www.minneapolisfed.org/arti..., that was,artifact happening at the extremes.
The old joke about chemist, lawyer and the actuary. Someone asked each how 1+1 is. The chemist said 2. The lawyer said generally 2 except for a statute in Humbolt Cty California making it pi when Venus is raising in Sagittarius. The actuary leaned forward and in a quiet voice said "how much do you want it to be?"
I think the point of $500K was to keep these taxpayers in the state.
I believe the idea in part is to keep high earning taxpayers in the state to remain in NJ.
The NJ Tax Rate for a 65+ $500,000. income joint return is approximately $28,000.
This would qualify for a $6,500, Property Tax rebate.
Each 65+ person with $500,000 income that leaves the state would decrease the state income tax receipts.
I assume the decision is to keep 65+ high earners in the state (and give them a property rebate) is to financially subsidize the 65+ property tax rebate plan for lower income earners that are retired.
