Gov. Phil Murphy would like to expand New Jersey’s property tax relief program to include renters and increase benefits for homeowners. The new plan is called “Affordable New Jersey Communities for Homeowners and Renters” (ANCHOR).

“We don’t want property taxes to force families out of great communities,” Murphy said.

The governor says the new proposal will lead to what everyone in New Jersey says they want - lower property taxes.

“Those words have never been spoken in the past three decades,” Murphy said.

The $900 million plan – which will be detailed in the governor’s budget address on Tuesday – will be for both homeowners and renters. It will provide an average of $700 a year to each homeowner and $250 per year for each renter.

“Our goal is for New Jersey’s next normal to be fairer for every household. This is a state brimming with opportunity, as you all know. And every resident deserves a chance to thrive,” says State Treasurer Liz Muoio.

There are plans to increase the funding in two years. The ANCHOR program would replace and expand the long-time Homestead Rebate Program. It provides an average of $626 per homeowner.

“Homestead has had a great run and we thank it for its service,” Murphy said. “But now is the time for greater and more permanent relief.”

Republicans like Assembly Minority Leader John DiMaio say the governor's plan does not address the root causes of high property taxes, from the high cost of public education to worker sick payouts.

“I appreciate the fact that he's thinking along the lines of helping property taxpayers. But these have been put in place and slowly they go away,” DiMaio says. “Everyone is being overcharged for property taxes. And it's a regressive tax and it makes us uncompetitive.”

Homeowners with incomes up to $250,000 will be eligible for the new program. For renters, that threshold is $100,000.