NJ Governor Phil Murphy signed legislation allowing homeowners to declare property taxes as charitable donations.  Local governments can now establish charitable organizations to accept property tax payments.

The response is a workaround of the Trump tax cuts that capped the deduction for state and local taxes at $10,000/yr seen by many “blue staters” in NY, NJ, CA, etc. as a de facto tax hike.

NJ’s move follows similar legislation signed last month by NY Governor Andrew Cuomo.

It is unclear whether the IRS will challenge this new class of charitable “giving” as it has yet to make public comment.