Over the past week, there have been a number of tax changes proposed in the FY 2019 budget, affecting both businesses and individuals in New Jersey. As we prepare our responses to these proposals, we are seeking your feedback and input regarding the impact these changes will have on you, your company, or your clients. Please reach out to me directly with any comments or feedback you may have regarding the impact of these proposals.
We are looking to measure the impact that these changes will have on our membership, and any information you provide will remain confidential. We are looking for feedback on the following tax proposals:
Corporation Business Tax (CBT)
Governor Murphy’s FY 2019 budget recommends a number of changes to the way in which New Jersey taxes businesses. While we are still gathering information surrounding some of these proposals, we are looking for your feedback on:
- combined reporting with a limited “water’s-edge” election;
- market-based sourcing;
- imposition of a carried interest fairness fee;
- a one-time tax on the deemed repatriation of foreign-held assets;
- reinstitution of the taxation of international holding companies; and
- other revisions to hold New Jersey harmless for certain other provisions of the recent federal tax reform plan.
Additionally, we are still seeking feedback on Senate President Sweeney’s proposal which would increase the top rate on New Jersey’s CBT from 9 percent to 12 percent for companies earning over $1 million in net income.
Gross Income Tax (GIT)
The Governor’s FY 2019 budget proposal includes a “millionaire’s tax” provision, which would increase the top income tax rate to 10.75 percent on income above $1 million. The change would be retroactive to January 1, 2018.
Please reach out to me directly with any comments or feedback you may have regarding the impact of these proposals. Please remember, any information you provide will remain confidential.