Permits taxpayers to deduct total amount of State property taxes paid on principal residence from gross income tax obligation.

This bill allows New Jersey residents to deduct the full amount of state property taxes paid on their principal residence from their gross income tax obligation, removing the previous $15,000 annual cap. It directly affects homeowners who itemize deductions on their state tax returns, particularly those with property tax bills exceeding $15,000. Key provisions include clarifying deductions for co-owners, rental properties, and adjustments for high-income taxpayers (those earning over $250,000 annually may face reduced deductions). The bill amends existing tax code sections to implement these changes while maintaining income-based limitations.