Bill > SR61

Introduced Session

This resolution urges the federal government to repeal the state and local tax (SALT) deduction caps. The federal "Tax Cuts and Jobs Act," Pub.L. 115-97, which was enacted in December 2017, capped the SALT deduction at $10,000 for single filers, head of household filers, and married taxpayers filing jointly, and capped the SALT deduction at $5,000 for married taxpayers filing separately Since 1913, American taxpayers, including many New Jersey residents, have had the option of using the SALT deduction when they file their federal income tax returns. Under the SALT deduction, American taxpayers who itemize on their returns, rather than claim the standard deduction, may deduct state and local real estate and personal property taxes as well as either state and local income or sales taxes. Historically, 41 percent of New Jersey tax filers have claimed the SALT deduction on their returns. New Jersey's high property taxes have only increased since the SALT deduction caps were enacted, with the average property tax bill in 2020 hitting $9,112, an increase of 105 percent since 2000. Since the enactment of the SALT deduction caps, many New Jersey residents, including those in the middle class, have moved out of the State to lower-tax states. Repealing the caps would kick-start the development of suburban markets in the State and would provide significant relief to New Jersey residents. Coronavirus Disease 2019 (COVID-19), which is caused by a novel coronavirus called SARS-CoV-2, has caused a global pandemic leading to unprecedented and overwhelming health and economic crises throughout the United States. New Jersey residents, who already pay some of the highest tax rates and cost of living expenses in the country, are financially struggling in the wake of the COVID-19 pandemic. New Jersey is a "donor state," meaning that the State pays more in federal taxes than it receives in federal funding. Because many New Jersey residents are facing unprecedented economic hardships, which have been exacerbated by the COVID-19 pandemic, and given the disparity in the amount that New Jersey residents pay in federal taxes in comparison to the amount that they receive in federal funding, the federal government should immediately repeal the SALT deduction caps.

Committee Categories

Holly Schepisi (R)*, 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/09/2024)

Official Document