Mayor Dalina Lauds U.S. Senate Effort to Repeal $10,000 Federal Cap on State and Local Property Tax Deductions
MONROE – August 18, 2021 – Mayor Stephen Dalina is expressing appreciation to the U.S. Senate for advancing an effort last week to repeal a $10,000 federal cap on deductions for “SALT,” an acronym for state and local taxes. This has been a priority for the Dalina Administration, which has strongly supported the New Jersey Congressional delegation in addressing this critical issue.
In 2017, the federal government modified its tax code, no longer allowing property taxpayers to have full deductibility of their property taxes and state income taxes as part of federal tax filings. This decision hit towns across New Jersey, like Monroe, particularly hard.
“The government’s decision is an unfair burden for many of our residents, especially those on a fixed income,” said Mayor Stephen Dalina, adding the full deduction of state and local taxes has been part of the U.S. tax code for more than a century. In fact, in 1913, the first federal income tax form allowed taxpayers to deduct state and local taxes - one of only six deductions allowed at the time.
Mayor Dalina said that reviving the SALT deduction is especially critical for Monroe’s middle-class residents, including such frontline workers as firefighters, teachers, and public health workers, who have helped the community survive the pandemic.
“Because of the cap on SALT deductions in 2017, many New Jerseyans are paying more in federal taxes,” Mayor Dalina said. “They deserve the SALT deduction. It is the tax break they earned. Congress can fix this, which is why I appreciate and laud the U.S. Senate’s support.
“I pledge to continue the fight.”
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All media inquiries may be directed to Monroe Township Public Information Officer Stacey Kennedy at 732-521-4400 or