This bill amends the Property Tax Deduction Act in New Jersey to provide increased income tax relief for tenants by raising the percentage of rent that can be classified as rent constituting property taxes from 18 percent to 30 percent. This change allows tenants to deduct a larger portion of their rent from their gross income, which in turn reduces the amount of income subject to taxation. The bill specifies that the deduction applies to the rent paid for occupancy of a residential rental property that serves as the taxpayer's principal residence.

The bill's provisions will take effect immediately and apply to taxable years beginning on or after January 1, 2020. By increasing the deduction cap, the legislation aims to alleviate the financial burden on tenants, enabling them to benefit from a higher deduction amount, thus enhancing their overall tax relief.

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