Last week in Washington, the House of Representatives passed a tax reform bill that would repeal the federal income tax deduction for state and local sales and income taxes, and cap the property tax deduction at $10,000. We thank Representatives Frelinghuysen, Gottheimer, Lance, LoBiondo, Norcross, Pallone, Pascrell, Payne, Sires, Smith and Watson Coleman for voting against the bill.
When the U.S. Senate returns to the Capitol, next week, they will be asked to vote on a proposal that eliminates the SALT (State And Local Taxes) deduction entirely. We are confident that Senators Menendez and Booker will oppose that bill.
On Monday, League Immediate Past President, Mayor Albert Kelly of Bridgeton, published an Opinion piece, “Outcome of these SALT Talks Critical for NJ”, which appeared in NJ.com outlets.
We wanted to let you know that our Federal Relations partner, the National League of Cities (NLC), has also been active on this and on other matters that will affect New Jersey municipal budgets. NLC has posted an action letter on tax reform and the FY18 budget. The letter has already received over 700 signatures, from municipalities all around the country. Feel free to add your own signature at the bottom of the page: http://www.nlc.org/StandWithCities.
Further actions on the SALT deduction, on the deductibility of interest earned on Private Activity Bonds, and on the Federal Budget, which is set to expire in early December, are coming. We need to have our voices heard on these issues.
Contact: Jon Moran, Sr. Legislative Analyst. 609-695-3481 x121.