54A:3A-19 Deduction for property taxes; limitations.

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5. a. If a taxpayer who is eligible for a deduction for property taxes paid under section 3 of P.L.1996, c.60 (C.54A:3A-17) for a part of the taxable year is also eligible for a deduction for rent constituting property taxes under section 4 of this act for a part of the taxable year, the taxpayer shall be allowed a deduction, not in excess of $15,000, subject to the limitations of subsection b. of this section, the amount of which shall be equal to the sum of the amount of property tax credit, as defined in section 1 of P.L.2018, c.11 (C.54:4-66.6), plus the amount of property taxes due and paid for the calendar year in which the property taxes are due and payable on a homestead that is not a unit of residential rental property and the amount of rent constituting property taxes due and paid for the calendar year in which the rent constituting property taxes is due and payable for the occupancy of a homestead that is a unit of residential rental property, provided however, that the amount of property taxes and property tax credits shall be subject to the limitations set forth in subsections b. through e. of section 3 of P.L.1996, c.60 (C.54A:3A-17) and the amount of rent constituting property taxes shall be subject to the limitations set forth in subsections b. and c. of section 4 of P.L.1996, c.60 (C.54A:3A-18) as may be applicable.

b. Notwithstanding the provisions of subsection a. of this section to the contrary:

(1)a taxpayer who is eligible for a deduction for property taxes paid under section 3 of P.L.1996, c.60 (C.54A:3A-17) for a part of the taxable year and is also eligible for a deduction for rent constituting property taxes under section 4 of P.L.1996, c.60 (C.54A:3A-18) for a part of the taxable year, shall be allowed a deduction for the taxpayer's taxable year beginning during 1996 based on 50% of an amount not in excess of $5,000, the amount of which shall be equal to the sum of the amount of property taxes paid on a homestead that is not a unit of residential rental property and the amount of rent constituting property taxes paid for the occupancy of a homestead that is a unit of residential rental property; and

(2)a taxpayer who is eligible for a deduction for property taxes paid under section 3 of P.L.1996, c.60 (C.54A:3A-17) for a part of the taxable year and is also eligible for a deduction for rent constituting property taxes under section 4 of P.L.1996, c.60 (C.54A:3A-18) for a part of the taxable year, shall be allowed a deduction for the taxpayer's taxable year beginning during 1997 based on 75% of an amount not in excess of $7,500, the amount of which shall be equal to the sum of the amount of property taxes paid on a homestead that is not a unit of residential rental property and the amount of rent constituting property taxes paid for the occupancy of a homestead that is a unit of residential rental property.

L.1996, c.60, s.5; amended 2018, c.11, s.16; 2018, c.45, s.3; 2024, c.88, s.23.