In the context of tax reform and last year’s Tax Cuts and Jobs Act, the state of New Jersey this week adopted regulations that would allow its taxpayers to skirt the new federal limit of $10,000 on state and local tax deductions. Under the New Jersey scheme, local governments across the state would be allowed to accept property tax payments in the form of charitable contributions thereby allowing taxpayers to deduct the full amount as a charitable contribution rather than local taxes. The regulation was adopted notwithstanding a recent IRS regulation prohibiting just such a move. High tax states such as New Jersey, along with other high-tax states such as New York, California and Connecticut have all put workaround laws in place and have filed suit challenging the new federal SALT limit. More to come on this!