The ink is still wet on the New Jersey budget signed by Governor Murphy on July 1, and many important details are still being deciphered. Tune in to hear some of the key tax implications of 2019 New Jersey budget.
HIGHLIGHTS
The 2019 New Jersey budget contains some key tax changes for both corporations and individuals.
Highlights include:
- An increase in the income tax rate to 10.75 percent for taxpayers with income of $5 million and above
- Significant corporate business tax changes, including:
- A surcharge of 2.5 percent for the next two years (tax years beginning on or after Jan. 1, 2018, through Dec. 21, 2019) and 1.5 percent for the subsequent two years (tax years beginning on or after Jan.1, 2020, through Dec. 31, 2021) for corporations with income of $1 million or more
- A new combined reporting system
- A change in the dividends-received deduction for tax years beginning after Dec. 31, 2016. There’s a reduction in the amount of the exclusion from 100 percent to 95 percent for 80-percent-owned subsidiaries.
- Authorization for the New Jersey Division of Taxation to hold a 90-day tax amnesty program that begins this year and ends by Jan. 15, 2019. Eligible returns include those that were due on or after Feb. 1, 2009, and prior to Sept. 1, 2017.
- An increase in the state property tax deduction cap from $10,000 to $15,000
- More funding for the Homestead property tax relief program
- An increase in the Earned Income Tax Credit (EITC)
- A new Child and Dependent Care Tax Credit
- No increase in the sales tax rate, however short-term housing rentals (e.g. Airbnb) will now be subject to sales tax. Plus the state will see more sales-tax revenue thanks to a recent U.S. Supreme Court decision that will allow New Jersey and other states to more aggressively tax online sales.
- A new surcharge on Uber and Lyft rides
- A new tax on e-cigarettes and tobacco
Keep up to date on NJ Budget information at
njcpa.org/njbudgetCOURSE LEVEL
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