TRENTON – Senator Paul Sarlo, chair of the Senate Budget & Appropriations Committee, issued the following statement after his legislation (S-1971/A-3382) allowing taxpayers to make dedicated prepayment toward anticipated property taxes to help cushion the impact of the federal tax law reducing state and local tax deductions, was signed into law by Governor Phil Murphy today:
“The new federal tax law is a real kick in the teeth to New Jersey’s homeowners because it sharply reduces the deductions for state and local taxes. These SALT deductions were a financial mainstay for middle class families that allowed them to better afford to live and work in communities throughout the state.
“These prepayments won’t make up for the entire loss, but they will help cushion the blow. Those who took what they considered the necessary step of prepaying their property taxes before the end of 2017 need to be protected. This will permit residents to make prepayments toward property taxes and assessments at any time during the year without prior authorization of the municipality.”