Bill Will Require State to Recognize Prepaid Property Taxes for 2017 Returns
(16th LEGISLATIVE DISTRICT) – Assemblyman Roy Freiman on Monday announced he will introduce legislation ensuring homeowners who prepaid property taxes last month because of federal tax law changes will get credit for doing so under their 2017 state income taxes.
The bill requires the state to accept advance property tax payments as part of the property tax deduction available on state income tax returns.
The measure would require the state to recognize that property taxes that were prepaid in 2017 for the 2018 calendar year may be claimed for the 2017 taxable year homestead property tax deduction. Current law prohibits such recognition.
“New Jersey homeowners who took what they considered the necessary step of prepaying their property taxes before the end of 2017 to counter the adverse federal tax changes should not be punished,” said Freiman (D-Somerset/Mercer/Middlesex/Hunterdon). “These federal tax changes are bad enough. The state must be flexible and find ways to assist New Jersey homeowners being unfairly and directly impacted, and this is a common sense step that can help.”
The legislation would also double the maximum New Jersey homestead property tax deduction from $10,000 to $20,000 for the 2017 taxable year to cover many of the 2018 pre-payments that were made at the end of calendar year 2017.
“The federal tax changes came with a lot of confusion, but with this change we can bring clarity when it comes to state income tax deduction and provide crucial relief when it’s going to be needed most,” Freiman said.
Freiman said he will introduce the bill as soon as possible, which will be on Monday when the Assembly convenes for committee hearings.