New Jersey § 54a:3a-18

§ 54a:3a-18.

a. A resident taxpayer whose homestead is a unit of residential rental property shall

be allowed a deduction from gross income for that portion of the rent constituting

property taxes not in excess of $15,000 , subject to the limitations of subsection d. of this section, due and paid for the

calendar year in which the rent constituting taxes is due and payable, for occupancy

of that homestead. b. A husband and wife who elect to file separate income tax returns pursuant to the

“New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. , shall each be entitled to one-half of the property tax deduction allowed pursuant

to this section. c. If more than one taxpayer, other than husband and wife, qualify to deduct rent

constituting property taxes by reason of their having occupied the same rented homestead,

it shall be presumed that the deduction shall be equally divided. A taxpayer may, however, deduct an amount for rent constituting property taxes in

the same proportion that the rent paid by that taxpayer bears to the total rent paid

by all tenants of the same unit. d. Notwithstanding the provisions of subsection a. of this section to the contrary:

(1) a resident taxpayer whose homestead is a unit of residential rental property shall

be allowed a deduction for the taxpayer's taxable year beginning during 1996 based

on 50% of the rent constituting property taxes not in excess of $5,000 paid for the

occupancy of that homestead; and (2) a resident taxpayer whose homestead is a unit

of residential rental property shall be allowed a deduction for the taxpayer's taxable

year beginning during 1997 based on 75% of the rent constituting property taxes not

in excess of $7,500 paid for the occupancy of that homestead.