TRENTON, N.J. (AP) — New Jersey Gov. Phil Murphy signed a law that allows property owners to prepay their taxes.
The bill, which was signed Friday, stems from the federal tax law change enacted last year. The law capped state and local tax deductions on federal returns at $10,000. That’s a big deal in New Jersey where many voters itemize their taxes and the average property tax bill is nearly $9,000 a year.
The new law retroactively permits residents to prepay their property taxes for 2018 in 2017.
Some residents attempted to make prepayments last year when the similar federal tax law passed.
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Murphy and lawmakers were pursuing this law to specifically authorize the prepayments and to cushion the blow of the new limit on state and local tax deductions.