Please see the following regarding a new law signed by Governor Murphy on 5/4/18 relating to the Federal tax law removing the deduction for state and local property taxes.

http://www.state.nj.us/governor/news/news/562018/approved/20180504a_propertyTax.shtml

http://www.nj.gov/dca/divisions/dlgs/lfns/18/2018-15.pdf

Once the regulations are issued, we will have to see what impact this will have on banks that escrow for taxes on NJ properties and if this will change the way you disclose taxes on the LE and CD under TRID.

Given that the average real estate tax bill for NJ homeowners in 2017 was $8,690 (according to the NJ Department of Community Affairs), this bill will almost entirely benefit those with above average income in NJ. I find it delightfully ironic to see so many Democrats in NJ falling all over themselves to characterize such a tax initiative as having primarily populist benefits.

And you're right, RR. This could get weird and problematic on the LE's and CD's.

We also need to wait for the IRS to weigh in on this "workaround". I think there is a better than even chance they will opine this is illegal and not in accord with federal income tax law.

I think they already have. See Notice 2018-54

https://www.irs.gov/pub/irs-drop/n-18-54.pdf

Here's an article that describes NJ's reaction to the IRS notice. http://www.nj.com/politics/index.ssf/201...art_river_index