Bill Text: NJ AR166 | 2020-2021 | Regular Session | Introduced


Bill Title: Urges US Congress to adopt legislation allowing commercial property owners to claim certain amounts of commercial tenant rent forgiveness during COVID-19 pandemic as deduction against property owner's income.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-06-11 - Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee [AR166 Detail]

Download: New_Jersey-2020-AR166-Introduced.html

ASSEMBLY RESOLUTION No. 166

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED JUNE 11, 2020

 


 

Sponsored by:

Assemblywoman  AURA K. DUNN

District 25 (Morris and Somerset)

 

 

 

 

SYNOPSIS

     Urges US Congress to adopt legislation allowing commercial property owners to claim certain amounts of commercial tenant rent forgiveness during COVID-19 pandemic as deduction against property owner's income.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Assembly Resolution urging the United States Congress to adopt legislation allowing commercial property owners to claim certain amounts of commercial tenant rent forgiveness during the COVID-19 pandemic as a deduction against the property owner's income.

 

Whereas, COVID-19, a novel coronavirus, is a respiratory illness that was first identified during an outbreak in Wuhan, China and has since expanded across various continents including Asia, Europe, North America, South America, Africa, and Australia resulting in a worldwide pandemic; and

Whereas, There have been millions of cases of COVID-19 confirmed worldwide with more than one million confirmed cases in the United States and over one hundred thousand confirmed cases across the state of New Jersey; and

Whereas, The COVID-19 outbreak has caused states, businesses, and schools to participate in "social distancing" steps to prevent the further spread of the virus; in addition to social distancing guidelines, Governor Murphy issued Executive Order 107 which required all New Jersey residents to stay at home until further notice and also required the closure of all non-essential businesses; and

Whereas, Non-essential businesses, such as retail, recreational, and entertainment businesses, were forced to shut down operations for the duration of the COVID-19 pandemic; non-essential businesses have been closed for more than one month and will continue to be closed into the foreseeable future; and

Whereas, Businesses that were closed as a result of the COVID-19 pandemic have suffered substantial financial hardships; businesses have had to layoff employees, have lost significant revenue, and many are at risk of bankruptcy and closure; and

Whereas, Without being able to generate revenue during the months of the COVID-19 pandemic, closed businesses, and businesses unable to operate in their full-capacity, are struggling to pay rental payments due on their properties; commercial tenants' inability to pay rental payments due on their properties has left many commercial property owners at risk of foreclosures; and

Whereas, The United States Congress should adopt legislation allowing commercial property owners to claim certain amounts of commercial tenant rent forgiveness during the COVID-19 pandemic as a deduction from the taxpayers federal income tax; commercial property owners should be able to claim a deduction of up to $15,000 of rental forgiveness provided to struggling businesses during the months, up to no more than three months, of the COVID-19 pandemic; and

Whereas, Allowing commercial property owners to claim these tax deductions from their federal income tax will serve as an incentive for commercial property owners to provide rental forgiveness to struggling businesses during the COVID-19 pandemic; and

Whereas, Having the ability to claim these deductions will help commercial tenant owners who would be otherwise faced with foreclosure while also reducing the number of businesses defaulting on their leases; and

Whereas, Adopting this legislation will help to prevent a glut of vacancies in commercial properties across the country, help struggling businesses to survive the COVID-19 pandemic, and help the United States economically recover after the COVID-19 pandemic ceases; now, therefore,

 

     Be It Resolved by the General Assembly of the State of New Jersey:

 

     1.    This House urges the United States Congress to adopt legislation allowing commercial property owners who provide rental forgiveness to struggling businesses during the COVID-19 pandemic to deduct up to $15,000 of the amount of rent forgiveness provided by the commercial property owner to each commercial tenant, over a period of not more than three months, from the commercial property owner's federal income tax.  The deduction will only apply to rent forgiven within the months declared to be a public health emergency by the federal government.  Taxpayers will also be unable to claim the deduction if the rent forgiveness was provided to businesses that are part of the same controlled group or the same affiliated group as the taxpayer.  In addition, commercial property owners will be unable to charge tenants any interest or penalties during the months that the commercial property owner is taking advantage of this tax deduction.

 

     2.    Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of the New Jersey congressional delegation.

 

 

STATEMENT

 

     This resolution urges the United States Congress to adopt legislation allowing commercial property owners to claim certain amounts of commercial tenant rent forgiveness during the COVID-19 pandemic as a deduction against the property owner's income.

     The COVID-19 pandemic has been a human tragedy that has affected the lives of millions worldwide.  COVID-19 has also severely impacted the global economy resulting in massive unemployment claims and financial difficulties.  Non-essential businesses have been forced to close which has resulted in an inability to generate revenue during the months of the COVID-19 pandemic.  These businesses are struggling to make rental payments due on their properties and their commercial property owners are faced with potential foreclosures.

     Businesses who have been negatively impacted by the COVID-19 pandemic are in need of rental forgiveness, so that they can continue to operate after the COVID-19 pandemic ceases.  In addition, commercial property owners who forgive rent to businesses during the COVID-19 pandemic should be rewarded with the ability to claim portions of their rental forgiveness, up to $15,000, as a deduction against their federal income tax.  Having the ability to claim this tax deduction will help to incentivize commercial property owners to offer rental forgiveness to businesses that are in need of financial assistance.  This legislation will help struggling businesses to survive the COVID-19 pandemic, prevent a glut of vacancies in commercial properties across the state, and help the state of New Jersey economically recover after the COVID-19 pandemic ceases.  For these reasons, the United States Congress should adopt legislation allowing commercial property owners to claim certain amounts of commercial tenant rent forgiveness during the COVID-19 pandemic as a deduction against the property owner's income.

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