TRENTON, N.J. – Assemblyman Brian Bergen signed on as prime sponsor to an Assembly resolution urging Congress to fully re-establish the state and local tax deductions, commonly known as SALT, that homeowners were permitted when filing their federal tax returns until a cap was imposed by federal law. The resolution notes the devastating impact Covid-19 has had on the Garden State population and its economy, and requests the homeowner tax deduction be restored for the 2019 federal tax filings due July 15.
“People in New Jersey are already taxed more than residents in almost every other state and they have suffered more from the pandemic than residents of almost every other state,” said Bergen. “Reinstating the SALT deduction for this tax season would go a long way toward helping Garden State families get through this crisis.”
Assemblywoman BettyLou DeCroce introduced AR163, noting the state’s economy was already sputtering prior to the Covid-19 crisis and that residents of New Jersey need tax relief immediately.
The resolution asks Congress to waive the $10,000 cap imposed by the federal tax cuts and Jobs Act of 2017 on the amount of state and local taxes homeowners can deduct from their federal tax bill. High cost-of-living states, such as New Jersey, where uniquely impacted by the cap because combined state and local taxes incurred annually by many Garden State homeowners easily exceed $10,000.