9th District Lawmakers Propose NJ Utility Tax Deduction For Residents

TRENTON, NJ — New Jersey residents could claim a state income tax deduction for certain charges on their home utility bills under legislation introduced by Sen. Carmen Amato Jr., Assemblyman Brian Rumpf and Assemblyman Gregory Myhre.

The measures, S-4410 and A-5230, would allow residents to deduct the taxes and fees they pay on home electric and natural gas bills, specifically the sales tax and societal benefit charges. The proposal comes from the 9th District delegation and is aimed at residents facing high utility costs.

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In a joint statement, the legislators said, “If Trenton is serious about providing relief to ratepayers facing high utility bills, then tax deductions should be included in any serious policy discussion about this pressing issue.”

“Providing a tax deduction is a direct and simple solution to assist ratepayers struggling with increasing utility costs,” the delegation said.

The statement frames the proposal as a question of state policy and spending priorities.

“Trenton must decide whether it will continue to benefit from increased sales tax revenue resulting from higher utility costs or do the right thing and provide direct tax relief to residents,” the delegation said. “It’s a simple choice that would require reductions in state government spending, but reducing the cost of living in New Jersey must be prioritized to assist seniors living on fixed incomes and struggling families trying to make ends meet.”

The legislation also includes a billing transparency requirement for utility customers. Under the proposal, electric and natural gas public utility suppliers would be required to list two items separately on periodic customer bills: the amount of tax imposed under the “Sales and Use Tax Act” and the amount of the societal benefits charge attributable to each customer.

That change would make the tax and fee portions of monthly electric and gas bills more visible to customers, according to the delegation.