By SHERRI RUGGIERI
The effects of the federal tax legislation will cut into New Jersey’s State and Local Tax (SALT) deduction and will limit the amount that can be deducted from homeowners’ property taxes. Governor Phil Murphy stated, “We have begun working with legislative leadership to protect our residents and prevent this plan from further hurting our taxpayers. We must eliminate any and all barriers to creating a system that will provide tax relief to property taxpayers who make charitable contributions to their municipality.” If implemented, taxpayers will then receive an offsetting tax credit on their property tax bill and contributions will be deductible for federal tax purposes.
Marlboro Mayor John Hornik; Ocean Township Mayor Christopher Sciciliano; Manasquan Mayor Edward Donovan; Belmar Mayor Matt Doherty; and Aberdeen Mayor Fred Tagliarini along with the mayors of Fair Lawn, Paramus, and Park Ridge have pledged to introduce this proposed plan to their municipalities. The proposal will allow taxpayers to make charitable donations for local services like schools, law enforcement, and infrastructure to offset property tax liability.
Governor Murphy has agreed to sign legislation that will alleviate roadblocks to municipalities reforming their property tax system to allow for charitable contributions. In this way, local revenues will be preserved while also providing residents with significant deductions from their federal income taxes under the existing law.
Sherri Ruggieri is the managing editor of Empire State News. A practicing attorney for over 20 years, Ms. Ruggieri is also chairperson of Edison Township’s Planning Board. Additionally, she has served as a college professor, with nearly a decade of experience in teaching law and political science courses.
COMMENTS DISABLED BY SITE.
YOU MAY, HOWEVER, COMMENT THROUGH FACEBOOK.