Homestead rebate credit

[NSNM]

For years New Jersey state use to send homestead rebate check for property tax paid.
In the past year, they are reporting directly to the township to credit homeowners' property tax account.
While itemizing property taxes on Federal Schedule A, is it proper to report GROSS property tax or NET property tax after deducting rebate credit.

[Greenbriar]

I'm using net

I deduct what they paid in property taxes to the municipality which is the net amount after the Homestead Benefit is deducted from the tax bill. In the past we deducted the homestead rebate from the property taxes on Sch A which was advised by the IRS until they changed their mind and wanted the HR as other income. Thankfully the HR issue is gone.