New Jersey Senate To Vote On Property...

New Jersey Senate To Vote On Property Tax Plan

NEW JERSEY (CBS) — The Trump tax plan limits the federal deduction for state and local taxes to $10,000, which amounts to a tax hike for many property owners in New Jersey.

On Monday, the state senate votes on bill that would provide a workaround.

“New Jersey’s a high-cost state, so more than 40 percent of people are going to see a tax increase,” said New Jersey Senate President Steve Sweeney

Sweeney says lawmakers have crafted a bill that would let filers still claim a deduction after paying their property taxes.

“We’re creating the framework of legislation that will enable towns to create charitable contributions, instead of property taxes, to different programs, whether it’s open space, schools, highway, roads, where they can deduct up to 90 percent of their contribution,” he explained.

Sweeney says nearly three dozen states have similar schemes in place, and although the IRS hasn’t weighed in on New Jersey’s plan, “If they don’t agree with what we’re doing, then they have a problem with the other 33 states.”

Author: http://philadelphia.cbslocal.com/2018/02/25/new-jersey-senate-to-vote-on-property-tax-plan/ --Molly Daly