DOWNEY BILL ENSURING HOMEOWNERS WHO PREPAID PROPERTY TAXES GET STATE INCOME TAX CREDIT ADVANCES BY PANEL

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Bill Will Require State to Recognize Prepaid Property Taxes for 2017 Returns

TRENTON – Legislation Assemblywoman Joann Downey introduced to ensure homeowners who prepaid property taxes last year because of federal tax law changes will get credit for doing so under 2017 state income taxes was advanced Thursday by an Assembly panel.

The bill (A-2650) 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.

“Federal tax changes can already cause a lot of confusion for residents getting documents ready to file,” said Assemblywoman Downey. “Homeowners who have prepaid their property taxes should receive credit under the year they paid. The new federal changes take advantage of responsible homeowners and they do not give credit where credit is due.”

The bill was released by the Assembly Appropriations Committee.