Freshman Assemblyman Roy Freiman (D-Hillsborough), one of the most vulnerable Democrats in the New Jersey Legislature, will introduce his first bill next Monday: a proposed law to ensure 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.
Freiman’s legislation requires the state to accept advance property tax payments as part of the property tax deduction that is available on state income tax returns. His proposal requires the state to recognize any property tax payments prepaid in 2017 for 2018 be claimed as a homestead property tax deduction for tax year 2017. State law currently prohibits that.
“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,” Freiman said. “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.”
Part of Freeman’s bill 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.