This bill proposes an increase in the maximum gross income tax deduction for homestead property taxes paid by residents of New Jersey. Currently, the maximum deduction is set at $15,000, but the bill seeks to raise this limit to $25,000. This change applies to three specific provisions: the deduction for property taxes paid on a principal residence, the deduction for rent constituting property taxes for residential rental units, and the combined deduction for taxpayers eligible for both property tax and rent deductions. The bill acknowledges the growing financial burden of property taxes and rents on New Jersey families.

The legal language of the bill amends existing statutes to reflect these changes, specifically replacing the previous maximum deduction of $15,000 with the new limit of $25,000. This adjustment aims to provide greater financial relief to residents facing increasing property tax and rental costs. The bill is set to take effect immediately upon passage, signaling a prompt response to the economic challenges faced by New Jersey families.

Statutes affected:
Introduced: 54A:3A-17, 54A:3A-18, 54A:3A-19