Bill Text: NJ S2710 | 2016-2017 | Regular Session | Introduced

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Bill Title: Repeals law requiring nonresidents to pre-pay estimated gross income tax on gains from sale of real property in State.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-10-20 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S2710 Detail]

Download: New_Jersey-2016-S2710-Introduced.html

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SENATE, No. 2710

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED OCTOBER 20, 2016

 

 

Sponsored by:

Senator  PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

 

 

 

 

SYNOPSIS

     Repeals law requiring nonresidents to pre-pay estimated gross income tax on gains from sale of real property in State.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning the pre-payment by nonresidents of estimated gross income tax on gains from sale of real property in the State, repealing P.L.2004, c.55.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Sections 1 through 4 of P.L.2004, c.55 (C.54A:8-8 through

C.54A:8-10) is repealed.

 

     2.    This act shall take effect immediately and apply to taxable years beginning on or after the January 1 next following the date of enactment.

 

 

STATEMENT

 

     This bill repeals P.L.2004, c.55, which requires that nonresident taxpayers submit an estimated tax form and pre-pay estimated gross income tax on any gain, when selling or transferring real property located in the State.  This requirement, often referred to as "the New Jersey exit tax," took effect for certain sales or transfers of real property occurring as of August 1, 2004.  It requires that nonresident individuals, estates, and trusts, as defined by the law, that are sellers or transferors of real property located in the State file an estimated tax form whether or not the seller realizes a gain on the sale of the property, and pay estimated gross income tax, as calculated by a given formula, on any gain from the sale. The form must be submitted and payment made before or at the closing of the transaction.

     This bill does not otherwise change the taxation of gains on the sale of real property in the State to nonresident taxpayers.