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I am writing to let you know that Governor Christie recently announced that he will be restoring the NJ/PA Reciprocal Income Tax Agreement. I have included the text from his press release below.



TRENTON, NJ – Governor Chris Christie announced today he is now able to save the income tax reciprocity agreement with Pennsylvania, thanks to health benefit reforms enacted since the FY17 budget passed.

In September, the State Health Benefits Commission and Plan Design Committee identified and enacted healthcare reforms to save State taxpayers over $200 million for Calendar Year 2017 ($100.5 million for Fiscal Year 2017).

Yesterday, the Governor signed bipartisan legislation, S2749 / A4328, to streamline and modify the State’s pharmacy benefits system – a move that will save State taxpayers up to an additional $200 million.

“This action will save State taxpayers hundreds of millions of dollars in health care benefit costs, and I’m proud my administration was again able to work with elected officials from both sides of the aisle and many labor union representatives to achieve these savings,” Governor Christie said. “By addressing a potential $250 million budget deficit from growing healthcare costs, we are now able to save an income tax reciprocity agreement with Pennsylvania that protects tens of thousands of hard working New Jerseyans from having to pay more income taxes.”

Thank you for your help and support through this challenging process, and in communicating the negative impacts that the elimination of this agreement would have had on your business.  Please let me know if you have any questions.

Taxation & Economic Development News

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