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, thereby reducing 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 aims to alleviate the financial burden on tenants by increasing the allowable deduction for property taxes, which is particularly beneficial for those who may struggle with housing costs. By enhancing the deduction from 18 percent to 30 percent, the legislation seeks to provide more substantial tax relief, ultimately lowering the overall tax burden for eligible taxpayers. The changes will take effect immediately and apply to taxable years beginning on or after January 1, 2020.

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