I live in NJ, so the income taxes paid are only for the payments to the return; however, the RE taxes are a deduction up to $15,000 on the NJ return.

If the state income tax is $10,000, and the RE tax is at least $15,000, then on the federal return I only get $10,000. If I check the box to deduct sales tax instead of state income tax I get the same federal result, not counting NIIT.

The sales tax on Sch A is irrelevant, and the RE tax goes to the NJ return. And none of the NJ refund is taxable in 2019.