Press Release from New Jersey Association Of Realtors
NJAR® Protects Property Tax Deduction for Most
Yesterday, the Senate Budget and Appropriations Committee and Assembly Budget Committee voted to approve the $29 billion fiscal year (FY) 2010 New Jersey budget. The latest spending plan, which is set for a final vote by the Legislature on June 25, 2009, includes the unexpected revenue received from the tax amnesty program. New Jersey is on course to collect $600 million in back taxes. This represents more than $400 million that had already been accounted for in earlier versions of the budget. The windfall will be used to partially restore property tax relief programs.
Due to NJAR®’s successful advocacy efforts and our membership’s participation in the Call to Action, we were able to protect the ability for households earning up to $250,000 to deduct their property taxes from their state income tax filings. The budget proposal allows households who make less than $150,000 to deduct as much as $10,000. Additionally, property owners who earn $150,000 to $250,000 annually will now be able to deduct their property taxes, up to $5,000. That represents about 200,000 additional homeowners who will be able to take advantage of the deduction.
The windfall will also be used to provide property tax rebates to households earning up to $75,000. Homeowners earning up to $50,000 will receive a rebate equal to last year’s check, for an average of $890, while those earning $50,000 to $75,000 a year will receive two-thirds of the rebate they received last year, for an average of $670. Senior or disabled citizens earning less than $150,000 are also set to receive a rebate. Renters who aren’t senior or disabled citizens did not have their rebates restored. These rebate levels match what Governor Jon Corzine laid out in his original budget proposal in March, before he called for the additional cutbacks.
NJAR® remains displeased with the FY 2010 budget because it reduces or eliminates the ability of certain households to deduct their property taxes from their state income tax filings. However, the partial restoration of the deduction represents a major victory for our Association because earlier versions of the budget called for a one-year suspension of property tax deductions on state income taxes for all non-senior households, regardless of income. Rest assured, NJAR® stands ready to redouble its efforts during next year’s budget process to ensure this critical deduction is restored for all homeowners.
