LONG BRANCH, N.J. (CBSNewYork) — President Donald Trump’s new tax plan is supposed to save you money on your taxes, but homeowners in the Tri-State Area are especially concerned about how it could affect them in the long run.
As CBS2’s Meg Baker reported, that has local lawmakers working on their own plan.
Under Trump’s tax reform, New Jersey residents could pay more taxes, and property values are expected to go down. Homeowners will now only be able to deduct $10,000 in property taxes at the federal level, and Gov. Chris Christie said that just doesn’t cut it.
He’s got a new idea at the state level.
“In my view, we should make property taxes on our state income tax returns completely deductible in response to what the federal government has done, because if we don’t, it will have an effect on property values in the state,” Christie said.
State and local tax deductions are especially important in the Garden State, and other high-tax states that send billions of dollars more to Washington than they receive in grants and services.
“It will affect property values in our state, but we can fix that,” Christie said.
Cue one of Christie’s fiercest opponents in Trenton. State Sen. Ray Lesniak (D-Union/Elizabeth) rarely agrees with Christie, but this time, they’re on the same page.
“We’re on the same page on sports betting, and every once in a while, we get together to do the right thing,” Lesniak said, “and this is certainly the right thing for homeowners of New Jersey.”
Lesniak is sponsoring a bill to allow homeowners to deduct all of their property taxes from state income taxes.
“This will at least reduce that amount by half or even three quarters 3of what they would have to pay because of President Trump,” Lesniak said.
But would this $150 million dollar break for taxpayers create an even larger deficit in the state budget? They already have an antidote.
“I propose closing corporate tax loopholes that 40 there states have already closed. It’s been pending in the Senate for two years now,” Lesniak said.
Lesniak is hoping to complete a Hail Mary pass to Christie and the taxpayers of New Jersey before Phil Murphy steps into office as governor.
The bill is being drafted now, and Lesniak is looking for support in the Assembly.