Rep. Sherrill Takes On Feds, Tries To Revive SALT Workaround

Rep. Mikie Sherrill is taking on the U.S. Treasury Department, and she’s got some support from several of her Congressional peers in New Jersey.

On Tuesday, Sherrill, who represents the state’s 11th District (Essex, Morris, Passaic, Sussex counties), introduced H.J. Res. 72. The legislation would roll back a June decision by the U.S Treasury that banned states and towns from using “charitable deductions” to circumvent the Tax Cuts and Jobs Act of 2017, which limits the amount of state and local taxes (SALT) a property owner can deduct to $10,000 a year.

If the resolution passes, it would bring some much-needed tax relief to homeowners across New Jersey, Sherrill said.

“The state and local tax deduction cap has placed a significant burden on residents in my community,” Sherrill stated. “I hear it from parents who wonder how they are going to afford to send their kids to college and teachers who ask me how they can continue to make New Jersey their home. The U.S. Treasury Department’s wrongheaded decision to bar states from utilizing charitable deductions impacts Americans across the country. It was done without congressional input and our resolution will give power back to states like New Jersey to address the high cost of living — only made worse by the loss of the full SALT deduction in 2017.”

The cap unfairly impacts 11 million U.S. property owners, who were unable to deduct more than $323 billion in state and local taxes from their federal returns since the rule changes, Sherrill stated.

Rep. Josh Gottheimer, who represents the state’s 5th District, offered support as a co-sponsor to the resolution.

“I have continued to hear from cities and towns across the 5th District that the Treasury Department's regulatory overreach is stopping them from being able to provide actual tax relief for our hardworking Jersey families,” Gottheimer said.

“Simply put, Congress didn't give the IRS permission to interpret the tax law as they see fit,” Gottheimer added.

Acting in solidarity with Gottheimer, Sherrill has gained 47 other co-sponsors to her legislation. That list includes fellow New Jersey Democratic Party members such as Donald Norcross (District 1), Jefferson Van Drew (District 2), Andy Kim (District 3), Frank Pallone (District 6), Tom Malinowski (District 7), Albio Sires (District 8), Bill Pascrell, Jr. (District 9), Donald Payne Jr. (District 10) and Bonnie Watson Coleman (District 12). Co-sponsors to the resolution also include Rep. Peter King of New York, a Republican.

The legislation was referred to the House Committee on Ways and Means on July 16. Members of the U.S. Senate introduced a companion resolution the same day.

Read the full text of H.J. Res. 72.

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