The New Jersey Senate passed bill S1893 on February 26, 2018 by a 28-9 margin. The bill would authorize any municipality, county or school district to establish charitable funds for specific purposes and permitting property tax credits for certain "donations." Residents would then take a charity write-off for property taxes on their federal income taxes. The bill must be approved by the full Assembly and Governor Phil Murphy has said he supports the measure.
Nonetheless, even if fully passed, the proposal faces an uphill battle as the IRS does not appear willing to recognize tax payments as "donations" and United States Treasury Secretary Mnuchin has called the plan "ridiculous."
New federal tax laws capped the deductions for state and local property taxes at $10,000. Average New Jersey property taxes hit a record $8,690 in 2017, the highest in the nation.
To read a copy of S1893 click here.