EAST RUTHERFORD, N.J. (CBSNewYork) – The federal tax changes will affect states, like New Jersey, with some of the highest property tax rates in the country.

On Friday, Gov. Phil Murphy signed a law that aims to provide some relief.

READ MORE: Former NYC Mayor Bill de Blasio Says He Will Not Run For Governor

As CBS2’s Meg Baker reported, the middle class may take the hardest hit, with the $10,000 federal cap on state and local tax deductions. Some are calling this a de facto tax hike.

“In Livingston…it’s $15,000. In South Orange, it’s $17,000. This is so hurtful to entire state, and in particular, in some districts up in the northern part of the state, where the property happens to be more valuable,” State Assemblyman John McKeon said.

“Forty-one percent of New Jersey households have benefited from the SALT deduction. And they will now lose an average of $8,000 in federal tax deductions,” said Murphy.

On Friday, the governor signed a possible solution – bipartisan legislation allowing municipalities to establish charitable funds. Instead of writing a check to your municipality for property tax payments, you would “donate” to these funds and receive up to a 90 percent tax credit in receipt – allowing taxpayers, in theory, to file charitable deductions on their federal taxes, as they would with other charities.

READ MORE: Yonkers Police Detail Attempted Suicide-By-Cop That Left Officer With Serious Injuries

“We have to set up infrastructure in a very quick manner to ensure that we educate all of our mayor and councils on how to implement this,” State Sen. Paul Sarlo said.

Thirty-three other states allow their taxpayers to make charitable donations.

Brian Thomas, with Fair Property Taxes for New Jersey, said the bigger problems is affordability within the Garden State. He’s called for property tax relief.

“We’ve had over the last decade, over 100,000 residents between the ages 18-35 leave the state. So that not only impacts current taxpayer base, but futures as well,” he said.

The Internal Revenue Service says in order for a charitable contribution to quality, donations must be made for truly charitable purposes and at no financial benefit to the donor. Murphy says if the IRS contests New Jersey’s plan, 33 other states must be reviewed.

MORE NEWS: No Remote Learning Deal, But Updated Attendance Policy Allows Some Online Work, NYC Schools Chancellor Says

The governor also said property taxes in the state can be lowered by sharing services.