Bill > AR55

This resolution urges Congress to reinstate the unlimited State and Local Tax (SALT) deduction, a longstanding tax provision that allows federal taxpayers who itemize their deductions to subtract state and local taxes from their federal income tax liability. Historically, this deduction has been available for over 100 years, and in 2014, over 41 percent of New Jersey residents claimed it on their tax returns. In December 2017, the federal Tax Cuts and Jobs Act limited the SALT deduction to $10,000, which significantly impacted states like New Jersey, where the average SALT deduction was $19,089 in 2017. The resolution highlights that New Jersey is considered a "donor state" because its residents pay more in federal taxes than the state receives back in federal funding—in 2018, New Jersey received only 79 cents for every dollar paid in federal taxes, the lowest return of any state. By urging Congress to reinstate the unlimited SALT deduction, the resolution seeks to provide financial relief to New Jersey residents and address the perceived inequity in federal tax and funding policies.

Government Affairs

https://www.njleg.state.nj.us/bill-search/2024/AR55