NJ Senate passes workaround of federal tax overhaul
(AP) - New Jersey's state Senate approved a measure aimed at letting taxpayers get around the new federal cap on state and local tax deductions.
The Democrat-led Senate voted 28-9 Monday to pass the bill. It goes next to the Democrat-controlled Assembly.
The legislation permits towns and school districts that collect property taxes to set up charitable funds.
Taxpayers would then pay property taxes to the funds and get a deductible tax credit in return.
Lawmakers say the measure would effectively restore the limitless deductions on state and local property taxes. The new law caps such deductions at $10,000, but not charitable deductions.
Skeptics say the IRS is unlikely to permit the change.
New Jersey has among the highest property taxes in the nation.
Democratic Gov. Phil Murphy has endorsed the idea.