Teach Me Tax Appeals

New Jersey $1 Billion in Tax Increases.

New Jersey passes Budget Fueled by $1 Billion in Tax Increase
06-26-09 http://www.nytimes.com/2009/06/26/nyregion/26jersey.html

In New Jersey, lawmakers passed a @29 billion budget on Thursday night that will increase taxes by almost $1 billion. It will eliminate property-tax deductions for the wealthiest residents and remove billions from health care, higher education and other programs. The grow of the new revenue in the budget, will come from a one year increase in the income tax on people making more than $400,000, more or less from about 61,000 residents. Taxes will also go up by 12.5 cents per pack on cigarettes and 25 percent on hard liquor and wine.

For the people that are making more than $250,000 a year they will no longer be able to deduct their property taxes, at least for a year. For the people making between $150,000 and $250,000 they can only deduct a maximum of $5,000 a year. As for the people making, less than the state median income of $82,000 they stand to be largely spared. You can see a perfect example of that in the property tax rebate program. The program can put up to $1,000 back in homeowners’ pockets. During this year the program will be limited to household earning less than $75,000. As for last year, they limited to $150,000 and two years ago $250,000.