Increases, from 18 percent to 30 percent, amount of rental payments defined as rent constituting property taxes for purposes of deduction from gross income for property tax payments.

This bill increases the percentage of rental payments counted toward property tax deductions for tenants from 18% to 30%. It directly affects renters who occupy residential rental property as their primary residence, allowing them to deduct a larger portion of their rent from taxable income. The change modifies the definition of "rent constituting property taxes" under New Jersey's Property Tax Deduction Act. This adjustment applies to taxable years beginning January 1, 2020, and simplifies how rental costs are treated for tax purposes.