Bill > A5553

Introduced Session

This bill revises a provision of the "Property Tax Deduction Act," P.L.1996, c. 60 (C.54A:3A-15 et seq.) that would provide additional income tax relief by increasing, from 18 percent to 30 percent, the amount of rent defined as "rent constituting property taxes" for tenants with annual gross incomes of $150,000 or less, while maintaining the amount of rent defined as "rent constituting property taxes" as 18 percent of rent paid during the taxable year for tenants with annual gross incomes over $150,000. Under the "Property Tax Deduction Act," a taxpayer is entitled to a deduction of up to $15,000 from gross income for property taxes, or the rental equivalent thereof paid by tenants, due and paid for that calendar year on a taxpayer's homestead. For tenants, the amount of the deduction is based on the amount of "rent constituting property taxes." Current law sets the amount of rent constituting property taxes at 18 percent of the rent paid by the taxpayer for the occupancy, during the taxable year, of a unit of residential real property which the taxpayer occupies a principal residence. The bill would increase the amount of rent constituting property taxes for tenants with annual gross incomes of $150,000 or less from 18 percent of rent paid to 30 percent of rent paid for occupancy during the taxable year, while maintaining the amount of rent constituting property taxes for tenants with annual gross incomes over $150,000 as 18 percent of rent paid by the taxpayer for occupancy during the taxable year. Increasing the cap on the amount of rental payments defined as rent constituting property taxes for those with annual gross incomes of $150,000 or less would allow eligible taxpayers to deduct a higher amount of rent from their gross income, thereby lowering the amount of gross income subject to taxation and reducing a tenant's tax burden.

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Chris DePhillips (R)*,  Beth Sawyer (R), 

Introduced, Referred to Assembly State and Local Government Committee (on 06/05/2023)

Official Document