Chris Christie, in one of his last moves as governor, signed an executive order to help ease the immediate blow of the recently passed Tax Cuts and Jobs Act.
Christie signed an executive order on Dec. 27 requiring all municipalities in the state to accept prepayments of 2018 local, state and property taxes, thereby allowing residents to get a deduction on those payments under the current law.
The issue has been notable since the new law puts a $10,000 cap on state and local tax deductions that residents can apply to their federal tax bill. Accountants in the state have been advising their clients to prepay SALT and property taxes before the end of the year.
Many tax experts, as well as trade state organizations such as the New Jersey Business & Industry Association and the New Jersey Chamber of Commerce, have railed against the new tax reform law, saying that it hurts New Jersey since the state has some of the highest taxes in the country.
“The action I took today will ensure that local governments are flexible and accommodating of their local property taxpayers as we transition to the new federal tax code for 2018," said Christie in a public statement. "This executive order requires local officials to dedicate the resources and staffing to serve New Jerseyans who are planning in this way for their families and their futures."
Tom Bracken, CEO of the state’s Chamber of Commerce, applauded the order in a public statement.
“For many property taxpayers in New Jersey, this could ease some of the sting – at least for the year 2018 – of the recently approved federal tax reform legislation. While this is a welcome benefit to those who can take advantage of a prepayment, it does not negate the fact that the net impact of the new 'Tax Reform and Jobs Act' will be a negative to our state”.