Permits taxpayers to deduct the total amount of State property taxes paid on principal residence from gross income tax obligation.

This bill (S 1678) allows New Jersey residents to deduct the full amount of state property taxes paid on their primary home from their state income tax liability, replacing a previous $15,000 annual cap. It directly affects homeowners who pay property taxes on their principal residence, reducing their taxable income for state tax purposes. Key provisions include removing the prior deduction limit and clarifying rules for shared ownership, rental properties, and tax years after 1997. The policy change applies to all qualifying homeowners regardless of income level (though certain income thresholds still apply under existing law). This is a direct tax deduction adjustment, not a property tax rate change.