Murphy seeks bill to blunt impact of federal tax law

TRENTON, N.J. (AP) - New Jersey Gov. Phil Murphy is asking lawmakers to send him legislation ensuring residents can pay property taxes as charitable contributions to skirt the federal tax overhaul.

Murphy, a Democrat, on Thursday called on the Democrat-led Legislature to send him a bill during an address to a conference of the state's mayors.

Murphy earlier this year stood alongside three towns who said they would set up charitable funds for residents to pay property taxes. He says another town will take that step Friday.

The new law caps local tax deductions on federal returns at $10,000.

That's an issue because New Jersey has the highest property taxes in the country.

Murphy is seeking to let pay property taxes be paid as charitable contributions, which can still be deducted on federal returns.