This bill amends the Property Tax Deduction Act in New Jersey to increase the percentage of rental payments that can be classified as rent constituting property taxes for income tax deduction purposes. Specifically, it raises the percentage from 18 percent to 30 percent of the rent paid by tenants for their principal residence. This change allows tenants to deduct a larger portion of their rent from their gross income, thereby reducing their overall tax burden.

Under the current law, tenants can deduct up to $15,000 from their gross income for property taxes or the rental equivalent, based on the percentage of rent constituting property taxes. By increasing this percentage, the bill aims to provide additional financial relief to tenants, allowing them to lower the amount of gross income subject to taxation. The bill is set to take effect immediately and will apply to taxable years ending after its enactment.

Statutes affected:
Introduced: 54A:3A-16