Millions of American Homeowners Who Do Not Itemize on Federal Taxes Would Be Able To Take Additional Deduction Through 2014

Washington, D.C. – June 6, 2009 – (RealEstateRama) — Rep. Rush Holt today introduced legislation to extend his federal property tax relief initiative for five years. The property tax deduction – which benefits homeowners who do not itemize on their Federal tax returns – is based on legislation Holt introduced in 2007 and was enacted into law in August 2008.  In October 2008, Holt successfully secured a one-year extension so that homeowners can benefit through the 2009 tax year. The legislation Holt introduced today would extend the deduction through the 2014 tax year.

Under the law, single-filing property-owning taxpayers can take an additional deduction of $500 and joint filers can deduct $1,000 for state and local property taxes paid or accrued.

“I continue to hear from New Jersey families who have benefitted from this tax relief. I want to make sure that we continue this successful program for another five years.  It’s one more way to help families in this economy,” Holt said.

“I applaud Rep. Rush Holt’s efforts to extend this federal property tax relief initiative, especially for families and seniors who have been hard hit by the national recession,” said Governor Jon S. Corzine.  “Direct property tax relief has been a chief priority for this administration and this legislation complements the more than $6 billion in rebates we have made to minimize the tax burden for New Jersey residents since 2006.”

In 2005, there were 72.3 million owner-occupied households in the United States, but only 40.5 million taxpayers claimed an itemized deduction for real estate property taxes. The more than 30 million homeowners who are benefitting from the new property tax relief initiative include elderly homeowners who no longer itemize in order to receive a mortgage interest deduction but are still subject to high property taxes.

Contact: Zach Goldberg
202-225-5801 (office)