Pennacchio Says Important Form of Property Tax Relief Has Failed to Keep Up
Senator Joe Pennacchio called on incoming governor Murphy to eliminate New Jersey’s $10,000 property tax deduction cap, highlighting the massive growth in property taxes since the limit was put in place in 1996.
Pennacchio: NJ Property Taxes Have Doubled Since $10k Deduction Enacted (SenateNJ.com)
“The $10,000 cap was imposed over two decades ago when homeowners’ tax bills were less than half of what they are today,” said Pennacchio. “This important form of property tax relief has failed to keep up with the times and we need to fix it.”
The average residential property tax bill in New Jersey was $3,864 when the $10,000 cap on the property tax deduction was enacted, according to the Office of Legislative Services.
Since then, property taxes have risen to an average of $8,549, a 121 percent increase. Homeowners and renters receive approximately $460 million dollars of property tax relief through the current deduction.
Pennacchio recently introduced S-3598, which would remove the $10,000 maximum deduction limit that can be claimed under the New Jersey Gross Income Tax for property taxes.
“It’s disingenuous for Governor-elect Murphy to criticize a federal bill, one that I also oppose, without doing anything to change our state’s current $10,000 cap,” Pennacchio added. “All complaining and no action will not solve New Jersey’s tax crisis. I urge Governor-elect Murphy to come to the table and discuss a bipartisan effort to reduce the overbearing property tax burden on over-taxed New Jerseyans.”
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