TRENTON, NJ – Legislation sponsored by Assembly Democrats John McKeon, Mila Jasey and Roy Freiman to counteract the cut in allowable property tax deductions imposed under the new federal tax changes has been approved by the General Assembly.
The bill was approved 68-1-3 and now awaits final legislative approval by the Senate.
McKeon (D-Essex/Morris) explained that the tax cuts disproportionately affect states with the highest property taxes, like here in New
“Taxpayers who pay more than $21,000 in state and local taxes lose the ability to claim anything over $10,000 in property taxes. That’s a huge loss for New Jersey households. With this bill, municipalities will hopefully help taxpayers lessen the impact property tax deduction limits will have on their federal tax returns,” he said.
“Homeowners would make contributions to pay for public services, which would be subject to a tax credit to offset that donation,” said Freiman (D- Somerset/Mercer/Middlesex/Hunterdon) and a resident of Hillsborough.
“A charitable fund option would protect taxpayer investments into their communities and create a way for them to recuperate some of the loss they would experience under the new property tax limits,” Freiman added.
The bill would permit a local unit, consisting of a municipality, county or school district, to establish one or more charitable funds, each for a specific public purpose, and permit property tax credits in association with such donations.
“Some New Jersey towns are already looking into this concept,” said Jasey (D-Essex/Morris).