Andrew Musick, Director
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.
7 responses to “Recent Tax Proposals – Your Input Needed”
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HI,
While I don’t want any tax increases, if Governor Murphy raises the sales tax he should eliminate Use Taxes. They’re a big nuissance and difficult to administer.
I think having all of these taxes come all at once plus the Family leave bill and the minimum wage increase is nothing but piling on. Do they really expect businesses to stay here after all of this? I am not far from the PA border. If these proposals come through, I will be certainly moving my business out of this state. I am willing to bet there will be many others following suite.
What a shame these people are so short sighted.
I agree moving to PA sounds good I was totally against the gas tax and now with all these other taxes we just can’t do business in New Jersey why don’t they take the 10% cap Off New Jersey property tax now.
It is amazing that so much wisdom can be held within the walls of the State House. How about reducing costs and eliminating abuses? Why is it that public employees are allowed to retire with more than one pension plus benefits from the same municipality? Why is it that our road construction costs are 8 times the national average? Why is it that installing a new traffic light in NJ costs hundreds of thousands of dollars? Issues such as these should be taken care of before we even think of tax increases. If these proposals become law, a lot of businesses are going to be gone. There are many camels that are about to be loaded with the last straw.
It seems that between Mr. Murphy and Mr. Sweeny there is a push to drive more businesses out of NJ. Time to look at relocation as a serious option. Maybe someplace that isn’t business hostile.
That why I do not vote for Murphy! Another Corzine
Murphy’s new Budget will continue to drive business’s out of New Jersey not to mention successful New Jersey residents that will see a 3% increase in State Taxes. Not once have I heard anything about cutting costs. Murphy thinks that piling on the Taxes is going to save the State, guess again, he will sink it !! Serious reform must be put in place or else the State will have an out migration that makes the current migration change from a significant flow to a fire hose escape. There is no logic. Murphy seems to think it is OK to PUNISH people who have achieved success through hard work and taking on considerable risk. Murphy’s focus should be building the Tax base not decimating it. He and his cohorts never had to meet a payroll or sweat out staying in business, most of them have been on their own form of Government Welfare. They are not in touch with reality