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 New Jersey bill (A2656) increases the percentage of rental payments that count toward property tax deductions for tenants from 18% to 30%. It directly affects renters living in qualifying residential rental properties used as their principal residence. The key change modifies how "rent constituting property taxes" is calculated, allowing tenants to deduct a larger portion of their rent from gross income. This adjustment lowers taxable income for eligible renters but does not change the $15,000 deduction cap. The bill amends the Property Tax Deduction Act (N.J.S.A. 54A:3A-15 et seq.) and applies to tax years beginning January 1, 2020.