Bill Text: NJ A1757 | 2022-2023 | Regular Session | Introduced
Bill Title: Imposes tax on high-quantity processors of financial transactions at $0.0025 per transaction.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-11 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A1757 Detail]
Download: New_Jersey-2022-A1757-Introduced.html
STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
SYNOPSIS
Imposes tax on high-quantity processors of financial transactions at $0.0025 per transaction.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act imposing a tax on high-quantity processors of financial transactions, supplementing Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. )(pending before the Legislature as this bill):
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Financial transaction" means a transaction involving the purchase or sale of a financial security, including but not limited to, a futures contract, options contract, futures option contract, swap contract, credit default swap contract, derivative, or share of stock in an entity.
2. a. A tax is imposed on a person or entity that processes 10,000 or more financial transactions through electronic infrastructure located in this State during the calendar year.
b. The tax is $0.0025 for each financial transaction processed through electronic infrastructure located in this State.
c. No financial transaction processed through electronic infrastructure located in this State shall be taxed pursuant to this section more than once. If multiple persons or entities process a single financial transaction through electronic infrastructure located in this State, the first person or entity processing the transaction through electronic infrastructure located in this State shall be subject to the tax imposed pursuant to this section.
3. a. The tax imposed by section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be filed and paid on a monthly basis in a manner prescribed by the director.
b. The tax imposed by section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be governed by the provisions of the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.
c. The director shall promulgate such rules and regulations as the director determines are necessary to effectuate the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. This act shall take effect 90 days following enactment.
STATEMENT
This bill imposes a tax on persons or entities that process 10,000 or more financial transactions through electronic infrastructure located in New Jersey during the year. The tax is $0.0025 (a quarter of a cent) per financial transaction processed in New Jersey.
There are reportedly billions of financial transactions processed daily, and many of those are processed through electronic infrastructure located in New Jersey. This tax, which is on the processor but may be passed along to the purchaser or seller, can therefore potentially raise a significant amount of revenue for New Jersey.
For purposes of the tax, a financial transaction is a transaction involving the purchase or sale of a financial security. Security includes, but is not limited to, a futures contract, options contract, futures option contract, swap contract, credit default swap contract, derivative, or share of stock in an entity.