New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S3457

Introduced
1/10/23  

Caption

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

Impact

If enacted, SB 3457 is expected to have a considerable impact on state laws regarding how property taxes are assessed and handled for rental properties. By allowing a larger portion of rent to be considered as property taxes and offering a credit instead of a deduction, the bill is designed to directly reduce the tax liabilities of low to moderate-income tenants. This can potentially lead to increased disposable income for these individuals or families, thereby contributing to greater economic stability and consumer spending within the state. However, the specifics of its implementation would require coordination between state tax authorities and local property management entities.

Summary

Senate Bill 3457 aims to enhance property tax relief for residential tenants in New Jersey by increasing the portion of rent that qualifies as 'rent constituting property taxes' from 18% to 30%. This modification is intended to ease the financial burden on tenants, especially in the context of rising housing costs. The bill also introduces a significant change in how tax relief is administered by replacing tax deductions made available to tenants with a refundable gross income tax credit of up to $15,000 based on rent payments. This shift is a response to the recognition that many tenants struggle to meet their housing costs, and it creates a more direct way for them to receive tax benefits.

Contention

The bill may face opposition from various stakeholders who argue that shifting from a deduction to a credit could complicate tax filing processes or that the increased credit might lead to debates over the allocation of state funds. Some critics might express concern that while the increase in tax relief sounds beneficial on the surface, it may lead to potential budgetary shortfalls that could impact other public services. Additionally, there may be discussions regarding the long-term sustainability of such tax relief measures, particularly in fluctuating economic conditions.

Companion Bills

NJ A4887

Same As Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

Previously Filed As

NJ S182

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

NJ A1358

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

NJ A4887

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

NJ A1362

Increases, from 18 percent to 30 percent, amount of rent constituting property taxes for purposes of gross income tax deduction for certain tenants.

NJ A5553

Increases, from 18 percent to 30 percent, amount of rent constituting property taxes for purposes of gross income tax deduction for certain tenants.

NJ S1394

Increases amount of rental payments defined as rent constituting property taxes for purposes of deduction from gross income for property tax payments; increases property tax credit option for certain individuals.

NJ S343

Increases, from 18 percent to 30 percent, amount of rental payments defined as rent constituting property taxes for purposes of deduction from gross income for property tax payments.

NJ A1333

Increases, from 18 percent to 30 percent, amount of rental payments defined as rent constituting property taxes for purposes of deduction from gross income for property tax payments.

NJ A1148

Increases, from 18 percent to 30 percent, amount of rental payments defined as rent constituting property taxes for purposes of deduction from gross income for property tax payments.

NJ A241

Increases and indexes maximum homestead property tax deduction under gross income tax.

Similar Bills

NJ S1678

Permits taxpayers to deduct the total amount of State property taxes paid on principal residence from gross income tax obligation.

NJ A2061

Permits taxpayers to deduct the total amount of State property taxes paid on principal residence from gross income tax obligation.

NJ A1119

Permits taxpayers to deduct the total amount of State property taxes paid on principal residence from gross income tax obligation.

NJ S2279

Permits taxpayers to deduct the total amount of State property taxes paid on principal residence from gross income tax obligation.

NJ S51

Increases maximum gross income tax deduction for homestead property taxes paid to $25,000.

NJ A241

Increases and indexes maximum homestead property tax deduction under gross income tax.

NJ A964

Increases and indexes maximum homestead property tax deduction under gross income tax.

NJ S2343

Increases maximum gross income tax deduction for homestead property taxes paid to $25,000.