Mayor Jonathan Hornik asks Marlboro Council to support legislation allowing property taxes payments as charitable contributions
Marlboro Mayor Jonathan Hornik is asking the Township’s Council to support Governor-elect Phil Murphy’s proposal to allow New Jersey residents to make charitable contributions in lieu of property taxes as an end around the tax reform legislation passed by Congress and signed into law by President Trump last year. The new federal tax law limits the deduction for State and Local Taxes (SALT) to $10,000.
“We take great pains as elected local officials to maintain Marlboro Township’s status as an affordable Monmouth County community with high quality services, attractive to both families and businesses,” Hornik said in a press release, “I am introducing this legislation to help Marlboro residents get the continued benefit of tax deductibility for their local payments to Marlboro Township which were eliminated by the Federal tax changes at the end of 2017.”
Hornik told MMM in a phone interview that Marlboro residents pre-paid their 2018 property taxes to the tune of $14 million before the the first of the year in order to deduct those taxes on their 2017 federal tax returns. The Township’s annual municipal budget for 2017 was approximately $37 million.
The Mayor said he is not yet clear about how the mechanics of the contributions will work and that Marlboro would follow the State’s guidance, should Murphy’s proposal become law.
The proposed Resolution submitted by Hornik to the Council for consideration asserts that “the State and local tax deduction is a fundamental principle of Federalism”.
“There is an additional argument that this Federal legislation imposes a form of double taxation on Marlboro residents, as we are now in a position of paying Federal income taxes on the taxes we pay to State and local governments,” said Mayor Hornik. “Let us
not forget that New Jerseyans already send more tax dollars to Washington D.C. than we get back.”
The Marlboro Council will consider Hornik’s resolution at a meeting scheduled for January 18, 7 p.m.