NJBIA President and CEO Michele Siekerka issued the following statement regarding bill S-3128/A-4694 (Lagana, Bramnick/Tully, Swain), signed into law today by Gov. Phil Murphy, that attempts to correct tax inequities due to New York taxing New Jersey workers who have stopped commuting into Manhattan or other parts of the Empire State.
“NJBIA thanks Governor Murphy, the sponsors, and supporters of this bill for attempting to bring much-needed tax fairness between New Jersey and New York.
“As remote work arrangements have increased greatly since the pandemic, it is simply unfair for New York to be claiming income taxes from New Jersey-based workers. New Jersey should be seeing that money for its own fiscal benefit, especially considering there are a number of employees who have not commuted to New York for work for a span of years now.
“NJBIA agrees with the convenience of the employer test provision of this new law, which allows New Jersey to assess income taxes on non-New Jersey residents who are physically working in the Garden State, just as New York and other states have practiced.
“We also hope businesses take advantage of the pilot grant program to move their New Jersey employees to New Jersey work locations. The more people we have who live, work and play in our great state, the better for our economy.
“Lastly, we look forward to the incentives in this bill leading to court action which may be the only way to permanently and comprehensively correct this tax inequity.”
