US Supreme Court’s failure to repeal SALT deduction cap frustrates NJ residents

The United States Supreme Court rejected New Jersey and other states’ requests to restore the full income tax deduction for state and local taxes.

News 12 Staff

Apr 19, 2022, 9:41 PM

Updated 820 days ago

Share:

The United States Supreme Court rejected New Jersey and other states’ requests to restore the full income tax deduction for state and local taxes.
The SALT tax deduction is currently capped at $10,000. Many New Jersey residents pay more than $10,000 in property taxes.
“We should be able to deduct our full property tax. If you’re paying taxes, why aren’t they deductible?” asks Samantha Yarros, of Cranford.
The Supreme Court refused to hear the challenge on Monday.
"I had to go to the bank and deposit cash so they could take that money out of my account immediately by 10 a.m.,” says Yarros. “I’m losing about 40% [of my property tax payments] as a deductible.”
In places like downtown Cranford, homeowners and business owners say they're hit hard by their inability to deduct all property tax payments from their taxes. But Republicans in Congress have said the SALT deduction is a reward for states where the cost of living is already too high.
Gov. Phil Murphy has consistently advocated for the full SALT tax deduction ever since the cap on the deductible came into place. The cap was due to the tax cut law signed in 2017 by then-President Donald Trump.
A spokesperson for Murphy said in a statement, "Repealing the cap will benefit countless middle and working-class families in our state, which has been forced to pay an extra $3 billion in taxes to the federal government."
The statement continued, "…we will continue the fight in Congress to reverse the Trump administration's tax hike and restore the full SALT deduction."
New Jersey residents say that they are frustrated.
"We used to be able to deduct more and now the government is taking a lot more out of our paycheck, not with property taxes, but with everything,” says Yarros.
And for some homeowners, the situation has them considering moving away from New Jersey.
“When you get that bill you always have to think about it a little more – see if it’s still worth it or not,” says Tom Usinowicz, of Cranford.
New Jersey argued to the Supreme Court that the federal government had no right to interfere with a state's ability to collect property taxes. The high court did not rule on whether that argument was valid.


More from News 12