Bill Pascrell Jr.

Murphy signs workaround of federal tax overhaul into law

Aiming to cushion the effect of the federal tax overhaul's limit on state and local tax deductions, New Jersey Gov. Phil Murphy on Friday signed into law a bill letting people deduct their property tax bills as charitable contributions.

"What the Trump administration enacted ... was nothing more than a tax hike on our working and middle-class families and seniors," said Murphy, a Democrat, who signed the legislation alongside U.S. Sen. Bob Menendez, Rep. Bill Pascrell and other officials.

The 2017 federal tax law caps state and local tax deductions at $10,000. That led officials in high-tax states like New Jersey scrambling to blunt the potential impact. A similar...