|March 22, 2018||Majority Press Office
Bill Will Require State to Recognize Prepaid Property Taxes for 2017 Returns
(TRENTON) – Legislation Assembly Democrats Roy Freiman and 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.
“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.”
“Federal tax changes can already cause a lot of confusion for residents getting documents ready to file,” said Downey (D-Monmouth). “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.