NJCPA Working with Senate President to Introduce Pass-Through Entity Tax Legislation
By Jeffrey Kaszerman, NJCPA Government Relations Director –
August 8, 2018
The NJCPA State Tax Task Force is working with Senate President Stephen Sweeney to draft legislation that will be titled the “Pass-Through Business Alternative Income Tax Act.” It will establish an entity-level tax on pass-through businesses to allow pass-through owners to get around the cap on state and local tax (SALT) deductions in the new federal tax law.
The legislation has an interesting history. In January, NJCPA member Alan Sobel, CPA, wrote a personal letter to Governor Murphy outlining the concept. When the letter was forwarded to legislative leaders, the concept took off. A press conference was held in May by leaders from both parties to announce their intention to introduce a bill to provide for Sobel’s proposal.
Since that time, the NJCPA State Tax Task Force has been working with the Senate President’s staff to hammer out legislation. An initial draft of the bill was recently reviewed by the task force. After careful review of the draft, the task force make several recommendations to improve it. They are hopeful the bill will be introduced in the fall.
The NJCPA will keep members posted on the bill's status.
Members of the State Tax Task Force:
- Kathleen M. Alexander, CPA, MST, CFE - SAX LLP
- Karen A. Artasanchez, CPA - Wilkin & Guttenplan, P.C.
- Joseph J. Cleary, CPA - Morey's Piers & Beachfront Waterparks
- John Coiro, CPA - Ernst & Young LLP
- James B. Evans, Jr., CPA, J.D., LL.M. - Kulzer & DiPadova, P.A.
- Thomas H. Flynn, CPA - Saker Holdings Corp.
- Edward I. Guttenplan, CPA, MBA, CGMA - Wilkin & Guttenplan, P.C.
- Jodi D. Kleuskens, CPA, MAcc - Johnson & Johnson
- Norman Lobins, CPA - Deloitte
- Mark J. Philips, CPA - PricewaterhouseCoopers LLP
- Alan J. Preis, CPA - Alan J. Preis, CPA, PC
- Marcus Rayner - PricewaterhouseCoopers LLP
- Alan D. Sobel, CPA, CGMA - Sobel & Co. LLC
- Darren W. M. Thomas, CPA, J.D., EA - Sobel & Co. LLC