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New Jersey Seeks Way To Protect Homeowners Amid Tax Law Changes

MARLBORO TOWNSHIP, N.J. (CBSNewYork) -- New Jersey is looking for a way to protect homeowners, who now have a limited state and local tax deduction based on the federal law.

"You know, we're not George Washington here," said New Jersey Gov. Phil Murphy. "This is not revolutionary."

Murphy said there are already 33 states that allow such protections. Towns would set up charities to collect local taxes, and payments would be deductible for federal taxes.

"It would be huge," said Belmar Mayor Matt Doherty.

But Doherty is not exactly sure how it should work.

"So what we're really waiting for is guidance from the state as to how we would make this work, so that it is compliant with IRS regulations for our residents," Doherty said.

It could potentially save taxpayers thousands of dollars.

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