Home owners in Piscataway Township are not feeling the economic boost that President Trump and Republican lawmakers promised with the recent passage of the Tax Cuts and Jobs Act.
Piscataway residents have been flocking to its Town Hall and have deposited nearly $3 million in the form of prepayments on their 2018 property taxes, out of fear that they cannot take the same deductions on their property taxes in the new year, when the law goes effect.
According to Piscataway Mayor Brian Wahler – who’s been an outspoken critic of the bill – hundreds of residents, many of them senior citizens, are standing outside of the town’s Tax Collector’s office trying to beat the 4:30 deadline today to pay their property taxes before the beginning of the new year.
The new law caps the deduction for property taxes at $10,000 and preserves the mortgage interest deduction only for existing mortgages and new home purchases with mortgages of $500,000 or less. Put simply, with the deduction reduced, home owners will be getting less money back on their tax returns.
The new law hits New Jersey especially hard since the state has some of the highest home values and property taxes in the country. According to data collected by Attom Data Solutions, the median home value in New Jersey was $265,000 in 2017, the ninth highest in the country. The state also has the highest property taxes in the country.
“This should be a time of year when people can wind down with their family and friends,” said Wahler in a press release. “Shame on the Republicans for upending the peacefulness of the holiday season on hard-working taxpayers…Adding insult to injury, New Jersey residents are digging into their savings to mitigate bad Republican policies and still do not have vital information for their financial planning.”