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.