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Murphy signs SALT deduction into law

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Gov. Phil Murphy signs the State and Local Tax Deduction to law in East Rutherford.
Gov. Phil Murphy signs the State and Local Tax Deduction to law in East Rutherford. - ()

New Jersey Gov. Phil Murphy signed into law Friday the State and Local Tax Deduction to provide property-tax relief.

The law allows New Jersey municipalities to create charitable funds through which taxpayers can donate in exchange for a tax credit of up to 90 percent of their donation to reduce their property tax bill. The legislation will become law within 60 days.

This follows the U.S. Congress’ approval of President Trump’s tax plan in December that caps the state and local tax deduction at $10,000.

“It is no secret that New Jersey’s middle class will be taking it on the chin with a $10,000 state and local tax or SALT deduction,” Murphy said at the signing in East Rutherford. “Today, we are taking a step to restore the property tax relief that the new federal law is set to take away. We know that President Trump and the Republican leadership in Congress targeted states like New Jersey when they wrote this law. We know now that New Jersey will get the fifth-least benefits among all 50 states.”

“Forty-one percent of New Jersey households benefit from the SALT deductions,” he continued. “And they will now lose an average of $8,000 in federal tax deductions. It is to be clear a de facto tax hike on countless New Jersey households.”

Murphy said Trump and Congressional Republicans “cooked this up to benefit the states that were with him [in the 2016 election] instead of treating us fairly.”

State Sen. Paul Sarlo, D-36th District, and State Assemblyman John McKeon, D-27th District, sponsored the bill.

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David Hutter

David Hutter


David Hutter grew up in Darien, Conn., and covers higher education, transportation and manufacturing for NJBIZ. He can be reached at dhutter@njbiz.com.

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Comments

George Morvey May 4, 2018 3:04 pm

What a crock of biomass.

Ann May 22, 2018 9:44 pm

Most taxpayer's aren't using the school system or getting a pension, so our property taxes are charitable donations. We shouldn't have to pay these bills. The deduction for our donations should be a given.

Joe Thein May 4, 2018 3:03 pm

LOWER THE PROPERTY TAXES!!!!!

Choi May 4, 2018 3:12 pm

Let's reduce NJ homeowners state tax by 50% and show some discipline to balance the state budget. It's not Trumps fault for everything the left does not like!!

manfred Mann May 4, 2018 3:22 pm

How do you spell IRS AUDIT?

William May 4, 2018 3:43 pm

Doesn't anyone realize the IRS knows this is a a scam, an end around tax avoidance measure and will not allow it? Murphy can sign whatever bill he wants but the IRS has the final say.

r casper May 7, 2018 8:38 am

Murphy is kidding the voters the problem is NJ taxes--We have the highest state taxes in the country reduce them!

manfred Mann May 7, 2018 9:27 am

More tax shenanigans out of Trenton. How do you spell A-U-D-I-T?

Amal May 7, 2018 9:54 am

How about reducing the property taxes instead, Mr.Governor?

Chris May 7, 2018 8:08 pm

This may be the most ridiculous article I have ever read. Making it seem like trump is punishing the blue states out of spite. No Mr Murphy, the Democrats are the problem. You are flipping this aroundbwhen the truth is the reason we don’t benefit is because of the ridiculous tax burdens you leave on your citizens. Nice try buddy, don’t blame me trump for your parties failures.

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