Menendez, Holt, And Corzine Highlight New Property Tax Relief Initiative In Monroe

Menendez, Holt, And Corzine Highlight New Property Tax Relief Initiative In Monroe

Millions of American Homeowners Who Do Not Itemize on Federal Taxes Will Be Able To Take Additional Standard Deduction

Monroe, NJ - U.S. Senator Robert Menendez, U.S. Rep. Rush Holt (NJ-12), and New Jersey Governor Jon Corzine were in Monroe today to discuss a new a property tax relief initiative that Menendez and Holt included in federal housing legislation signed into law by President Bush on July 30, 2008. The new property tax deduction will benefit homeowners who do not itemize on their Federal tax returns. Under the law, single-filing property taxpayers will be able to take an additional standard deduction of $500 and joint filers will be able to deduct $1,000 for state and local property taxes paid. According to the New Jersey Department of Taxation, nearly 600,000 New Jersey residents will benefit from the initiative. Two New Jersey homeowners who will receive the deduction - Herb and Susan Junker of Monroe - hosted the event in front of their Monroe house.

"We're hoping that this will benefit families who have seen their mortgage payments skyrocket and are concerned about the price of driving the kids to school, driving to work and putting food on the table," Menendez said. "We know that our seniors are even more likely to claim the standard deduction on their tax returns, and we're hoping that this will provide relief to those who may have fixed or limited incomes but still carry the burden of property taxes. Even better, we'll provide this break without depleting the resources brought in by property taxes that help communities build schools and provide a quality education for our children."

"Among the economic challenges millions of New Jerseyans and Americans face during this downturn - along with rising gas prices, food costs and college tuition - is high property taxes," Holt said. "Hundreds of thousands of New Jersey residents will now receive some relief for the property taxes they pay."

In 2005, there were 72.3 million owner-occupied households in the United States, but only 40.5 million of those taxpayers claimed an itemized deduction for real estate property taxes. The more than 30 million homeowners who don't currently benefit from property tax deductions include elderly homeowners who no longer itemize in order to receive a mortgage interest deduction but are still subject to high property taxes.

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