Gov. Phil Murphy has recommended certain technical changes to a proposed bill that would permit New Jersey taxpayers to make dedicated prepayments toward anticipated property taxes.
Murphy took this action in response to President Donald Trump’s signing into law the Tax Cuts and Jobs Act, which limits a person's maximum state and local property tax (SALT) deductions to $10,000.
Murphy wants to eliminate possible confusion in Bill 3382 by explicitly “clarifying that taxpayers may indeed prepay their property taxes, regardless of whether the municipality had issued the quarterly tax bills prior to submission of the prepayment. This clarifying language is retroactive to July 1, 2017, and applies to any taxpayer who attempted to prepay a third or fourth quarter property tax installment for tax year 2018 in calendar year 2017.”
New Jersey residents pay among the highest property taxes in the nation.
“I commend the bill’s sponsors for their efforts to protect property taxpayers, including those who sought to pay their property taxes before the Trump administration’s limitations of the SALT deduction took effect,” Murphy said in a statement.
New Jersey Assembly Bill 3382 was co-sponsored by Rep. Roy Freiman, D-16th District; Assemblyman Vincent Mazzeo, D-2nd District; Assemblywoman Joann Downey, D-11th District; and Sen. Paul Sarlo, D-36th District.