Bill Text: NJ S3269 | 2018-2019 | Regular Session | Introduced


Bill Title: Allows real estate salespersons and broker-salespersons to form limited liability company to receive commission income.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-12-06 - Introduced in the Senate, Referred to Senate Commerce Committee [S3269 Detail]

Download: New_Jersey-2018-S3269-Introduced.html

SENATE, No. 3269

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED DECEMBER 6, 2018

 


 

Sponsored by:

Senator  PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

 

 

 

 

SYNOPSIS

     Allows real estate salespersons and broker-salespersons to form limited liability company to receive commission income.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning real estate brokers, broker-salespersons and salespersons, and amending R.S.45:15-16.

 

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

 

     1.    R.S.45:15-16 is amended to read as follows:

     45:15-16.    a.  No real estate salesperson or broker-salesperson shall accept a commission or valuable consideration for the performance of any of the acts herein specified, from any person except his employer or contracting broker, who must be a licensed real estate broker.

     b.    A real estate salesperson or broker-salesperson may form a limited liability company pursuant to the "Revised Uniform Limited Liability Company Act," P.L.2012, c.50 (C.42:2C-1 et seq.), or any other entity permitted by law, in order to receive a commission or other valuable consideration pursuant to subsection a. of this section.

(cf: P.L.2018, c.71, s.12)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill allows real estate salespersons or broker-salespersons, to form a limited liability company, or any other entity permitted by law, to receive commission income from the licensed real estate broker with whom the salesperson is contracted to provide his or her services.  The specific permission for a salesperson or broker-salesperson to operate through a limited liability company is intended to eliminate any confusion as to whether they may take advantage of the pass-through business income deduction made available under section 199A of the Federal Internal Revenue Code as part of the federal tax reforms which will take effect for tax year 2018, as a result of the 2017 "Tax Cut and Jobs Act."

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