New Jersey Gov. Jon Corzine last week withdrew his proposal to temporarily suspend property tax deductions for all non-seniors after homeowners criticized the plan.
On March 10, Corzine released a fiscal 2010 budget proposal that included a one-time suspension of property tax deductions for all non-seniors to generate $400 million for the state’s coffers.
A new plan would allow people making $150,000 or less, amounting to 84% of taxpayers, to deduct their property taxes. The $29.8 billion spending plan — which is $3.4 billion smaller than the current budget — includes a reduction in property tax rebates for non-seniors.
Homeowners have criticized Corzine for suspending the deduction while at the same time lowering property tax rebates.
“I’ve been listening to New Jerseyans and think we need to preserve this deduction to continue our fight to ease the burden of property taxes,” Corzine said in a release.
His plan includes lowering New Jersey’s pension contribution by $500 million and boosting the income tax on those making $500,000 or more by 0.75%.
In addition, the state plans to refinance prior debt to generate $361 million of savings. The Treasury Department has yet to release details, but the refinancings may include refunding debt for savings and also restructuring debt to push out maturities, according to Tom Vince, spokesman for the Treasury.