3. There is established the Stay NJ property tax credit program. The director shall administer the Stay NJ property tax credit that shall provide to an eligible claimant a property tax credit in the amount of 50 percent of the property tax paid for the eligible claimant’s principal residence in the prior tax year. A Stay NJ property tax credit for an eligible claimant who is a tenant shareholder in a cooperative, mutual housing organization, or continuing care retirement community shall be based on the eligible claimant’s proportionate share of the property taxes assessed against that real property that are attributable to the eligible claimant’s unit. Property tax credits shall be allowed pursuant to this section in relation to the property taxes paid or allocable to an eligible claimant who has more than one homestead in a tax year, but the aggregate amount of the property taxes or property tax credits claimed shall not exceed the total proportionate amounts of property taxes assessed and levied against or allocable to each homestead for the proportion of the tax year quarter to which the taxpayer occupies it as the taxpayer’s principle residence.

The amount of the Stay NJ property tax credit shall be calculated for each eligible claimant by the director, and paid to the tax collector of the municipality in which the eligible claimant’s homestead is located pursuant to the provisions of subsection a. of section 5 of P.L.2023, c.75 (C. 54:4-8.75e).

Notwithstanding the provisions of P.L.2023, c.75 (C. 54:4-8.75a et al.) that require an annual property tax credit in the amount of 50 percent of the property tax paid on an eligible claimant’s homestead, the maximum amount to be credited to an eligible claimant shall be $6,500 in 2026, if there is no delay in implementation as may occur pursuant to section 19 of P.L.2023, c.75 (C. 54:4-8.75p). For every tax year after the year in which the Stay NJ property tax credit program is first implemented, the maximum amount to be credited to an eligible claimant shall be increased based on the annual percentage increase in the average residential property tax bill as shall be computed by the Director of the Division of Local Government Services in the Department of Community Affairs.

An eligible claimant shall be entitled to a Stay NJ property tax credit annually, on proper claim being made therefor to the director. Notwithstanding any provision of P.L.2023, c.75 (C. 54:4-8.75a et al.) to the contrary, the amount of property taxes used to determine the amount of the Stay NJ property tax credit shall not be reduced by the amount of the deductions taken by an eligible claimant pursuant to P.L.1963, c.171 (C. 54:4-8.10 to 54:4-8.23) and P.L.1964, c.255 (C. 54:4-8.40 to 54:4-8.45 et al.). The surviving spouse of a deceased resident of this State who during his or her life received a Stay NJ property tax credit shall be entitled, so long as the surviving spouse does not remarry, remains a resident in the same homestead with respect to which the Stay NJ property tax credit was granted, and is an eligible claimant, to the same Stay NJ property tax credit, upon the same conditions, with respect to the same homestead.

L.2023, c.75, s.3.