Trenton – In an effort to make renting more affordable, the Senate Community and Urban Affairs Committee today advanced legislation sponsored by Senator Troy Singleton that would increase rent constituting property taxes from 18 percent to 30 percent to deduct from one’s gross income tax payments.
The bill, S-3603, would increase the amount of rental payments defined as rent constituting property taxes, from 18 percent to 30 percent, in order to deduct from the gross income for property tax payments.
“For many New Jerseyans, renting is the most affordable and viable housing option. Homeowners are able to receive property tax benefits, but renters, who also pay property taxes, should be able to reap the same benefits,” said Senator Singleton (D- Burlington), chair of the Senate Community and Urban Affairs Committee. “Especially when considering that New Jersey renters pay some of the highest rents in the nation. With this bill, we hope to make renting more affordable by increasing the renters’ deduction from 18 to 30 percent.” The Senator also noted the bi-partisan nature of this issue, and thanks Assemblyman Christopher DePhillips for bringing this proposal to his attention.
According to the 2019 American Community Survey, there were approximately 1.2 million renter-occupied housing units in New Jersey. The same data indicated that New Jersey’s median gross rent for 2019 was $1,376, which was the fourth-highest in the nation after Hawaii, California and Maryland.
The bill was released from committee by a vote of 5-0.