NJ property tax deduction would be restored in bipartisan bill backed by Sherrill

U.S. Rep. Mikie Sherrill (NJ-11) renewed a fight to restore a major tax break for New Jersey residents on Tuesday, introducing bipartisan legislation to lift the $10,000 limit on deducting state and local taxes from federal returns.

The so-called "SALT cap" was signed into law in 2017 by then-President Donald Trump and mostly impacts higher-income property owners in states such as California, New Jersey and New York. Wealthy districts such as Sherrill's, which covers suburban Morris, Essex and Passaic counties, were among the most affected when the deduction was limited.

Sherrill, a Montclair Democrat, said she was co-sponsoring the "Middle-Class Tax Relief Act" with Hudson Valley Republican Mike Lawler of New York's 17th congressional district. The district includes Rockland and Putnam counties and parts of Westchester and Dutchess.

"Since Day One, my constituents have asked Congress to right the wrongs of the 2017 GOP tax bill, which punished residents in states like New Jersey with double taxation,” Sherrill said.

The issue has remained at the forefront of New Jersey congressional campaigns over the last six years, with candidates from both parties pledging to restore the full deduction. Sherrill's opponent in last year's election, Paul DeGroot, repeatedly criticized her for failing to deliver on a promise to repeal the cap.

Analysts in Washington, however, have said the slim Republican majority in the House is likely to block any backtracking on one of Trump's signature accomplishments. Some Democrats have balked at restoring the deduction as well, since most of the benefit would go the wealthiest property owners.

Sherrill and Lawler's proposal would raise the cap on SALT deductions from $10,000 per household to $100,000 per single filer and $200,000 for married couples, the congresswoman said in a statement. It would effectively eliminate the cap for 99% of 11th district families and allow residents to deduct an additional $8 billion in state and local taxes over the next three years, Sherrill added.

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"By introducing this bipartisan legislation, we are one step closer to making life more affordable and improving the lives of NJ-11 families," Sherrill said in a news release announcing the bill.

Lawler added: “There’s a reason New York leads the nation in out-migration and it has nothing to do with the weather. The cost of living is crushing families of all backgrounds and the SALT cap is a big reason why."

Sherrill said the Middle-Class Tax Relief Act is the first of five pieces of legislation she plans to introduce this year as part of her "Jersey STRONG" agenda. Her next move, she told reporters on a conference call last week, would be the reintroduction of a bill to fund expanded mental-health access for military veterans "across a wide breadth of American communities."

"North Jersey is one of those areas and I'm fighting for a vets center in Morris County," said Sherrill, a former Navy helicopter pilot.

William Westhoven is a local reporter for DailyRecord.com. For unlimited access to the most important news from your local community, please subscribe or activate your digital account today.

Email: wwesthoven@dailyrecord.com Twitter: @wwesthoven

This article originally appeared on Morristown Daily Record: SALT tax deduction bill introduced by Mikie Sherrill, Mike Lawler