Murphy Mobilizes Mayors to Craft Policies for Tax Relief

MARLBORO – Gov. Phil Murphy Feb. 9 called upon mayors to take steps to counteract the effects of the federal tax legislation that gutted New Jersey’s State and Local Tax (SALT) deduction and limited the amount of money state homeowners can deduct from their property taxes, according to a release.
“When the disastrous federal tax legislation passed, I committed to pushing back and taking steps to ensure that the people of New Jersey are not subjected to unfair double taxation,” Murphy stated. “We have begun working with legislative leadership to protect our residents and prevent this plan from further hurting our taxpayers. We must eliminate any and all barriers to creating a system that will provide tax relief to property taxpayers who make charitable contributions to their municipality.”
If the system is implemented, taxpayers can make voluntary contributions to funds that pay for local services like schools, law enforcement, and infrastructure.
They would then receive an offsetting tax credit on their property tax bill and contributions would be deductible for federal tax purposes under existing law.
Murphy was joined by a bipartisan group of mayors who have pledged to allow taxpayers in their towns to make payments to local governments as charitable donations and offset property tax liability.
They included mayors from Marlboro, Ocean Township, Manasquan, Belmar, and Aberdeen who pledged to introduce this plan in their municipalities. They join the mayors of Fair Lawn, Paramus, and Park Ridge who made that pledge in Jan.
On Feb. 8, Murphy promised to sign any legislation that reduces existing state roadblocks to municipalities reforming their property tax system to allow for charitable contributions, a system that will preserve local revenues while also providing residents with significant deductibility of their payments from their federal income taxes.