Bill Text: NJ A5077 | 2022-2023 | Regular Session | Introduced
Bill Title: Requires Director of Division of Taxation to conduct study on impact of State business income taxation on business out-migration, formation, and employment for previous and upcoming tax years.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2023-01-19 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A5077 Detail]
Download: New_Jersey-2022-A5077-Introduced.html
Sponsored by:
Assemblywoman MICHELE MATSIKOUDIS
District 21 (Morris, Somerset and Union)
Assemblyman BRANDON E. UMBA
District 8 (Atlantic, Burlington and Camden)
SYNOPSIS
Requires Director of Division of Taxation to conduct study on impact of State business income taxation on business out-migration, formation, and employment for previous and upcoming tax years.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the study of the impact of State business income taxation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The Director of the Division of Taxation shall engage in a study of the impact of New Jersey business income taxes on business out-migration, business formation, and employment within the State. In conducting the study, the director shall examine data available from corporation, partnership, and other New Jersey income tax returns from the period beginning on January 1 of the eighth calendar year immediately preceding the effective date of this act and ending on December 31 of the eighth calendar year immediately following the effective date of this act.
b. Based on data available from the period beginning on January 1 of the eighth calendar year immediately preceding the effective date of this act and ending on December 31 of the calendar year immediately preceding the effective date of this act, the director shall submit a Retrospective Tax Policy Impact Report consisting of the study's findings and recommendations, including whether any State or local tax laws or policies may be modified to improve the State's business climate and decrease the financial impact of taxes on businesses residing in the State. The director shall submit the report on or before January 15 of the second calendar year immediately following the effective date of this act to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).
c. For the first full calendar year beginning after the effective date of this act and for each of the seven calendar years thereafter, the director shall annually submit to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), a Tax Policy Impact Report consisting of the study's findings and recommendations from the data available for that year, by January 15 of the calendar year immediately following the calendar year for which each report is prepared.
2. This act shall take effect on January 1 of the first full calendar year next following enactment and shall expire upon issuance of the final annual report required by subsection c. of section 1 of this act.
STATEMENT
This bill requires the Director of the Division of Taxation to engage in a study of the impact of New Jersey business income taxes on business out-migration, business formation, and employment within the State. In conducting the study, the director would examine data available from corporation, partnership, and other New Jersey income tax returns from the period beginning on January 1 of the eighth calendar year immediately preceding the effective date of the bill and ending on December 31 of the eighth calendar year immediately following the effective date of the bill.
Based on data available from the period beginning on January 1 of the eighth calendar year immediately preceding the effective date of the bill and ending on December 31 of the calendar year immediately preceding the effective date of the bill, the director would be required to submit a Retrospective Tax Policy Impact Report consisting of the study's findings and recommendations, including whether any State or local tax laws or policies may be modified to improve the State's business climate and decrease the financial impact of taxes on businesses residing in the State. The director would be required to submit the report on or before January 15 of the second calendar year immediately following the effective date of the bill to the Governor and the Legislature.
For the first full calendar year beginning after the effective date of the bill and for each of the seven calendar years thereafter, the director would be required to annually submit to the Governor and the Legislature, a Tax Policy Impact Report consisting of the study's findings and recommendations from the data available for that year, by January 15 of the calendar year immediately following the calendar year for which each report is prepared.
