After weeks of negotiation and discussion regarding competing tax proposals in Trenton, a deal has been struck on the state budget and tax reform by Governor Phil Murphy and legislative leaders. The result is a host of business tax changes enacted as part of Assembly Bills A-3088, A-3438 and A-4202. Here is a summary of some of the major business tax changes set to take effect in New Jersey:

Tax Amnesty

  • A-3438 provides for a 90-day tax amnesty period to run through no later than January 15, 2019.
  • Under the new amnesty, any taxpayer with liabilities for returns due on or after February 1, 2009, can pay the tax, plus half the interest due as of November 1, 2018 and avoid any penalties with the exception of criminal and civil fraud penalties.
  • An eligible taxpayer cannot be notified of or be under criminal action or investigation.
  • The new law also imposes a 5 percent non-participation penalty for liabilities eligible for amnesty that are subsequently discovered by the Division of Taxation.

Continue Reading New Jersey Taxes—They Are a-Changing…

Today, the U.S. Supreme Court issued a landmark decision in the state and local tax world which overturns precedent going back to 1992. The decision, South Dakota v. Wayfair, No.17-494 (June 21, 2018), means that state and local taxing jurisdictions throughout the country can now compel online sellers to collect sales tax for sales made to customers in that particular state or local jurisdiction, even if the seller does not have a presence there.

Continue Reading U.S. Supreme Court Overturns Quill: Online Sellers Can Now be Compelled to Collect Sales Tax

In February 2018, the New Jersey Tax Court delivered another blow to the Division of Taxation’s (the “Division”) attempts to use partnership income tax withholding to tax out-of-state limited partners. In so doing, the Tax Court has arguably called into question New Jersey’s entire partnership remittance or withholding regime.

Case Discussion

In National Auto Dealers Exchange, L.P. v. Director, Division of Taxation, No. 000028-2014, the Tax Court held that the Division could not impose the partnership remittance in accordance with N.J.S.A. 54:10A-15.11 on a limited partnership whose 99-percent corporate limited partner declared that it maintained a regular place of business in New Jersey.

Continue Reading New Jersey’s Taxation of Limited Partnerships: The Saga Continues

As seen on:  ROI-NJ.com

Gov. Phil Murphy’s decision to reactivate Urban Enterprise Zones for five years in five communities across the state was met with applause from municipal and association leaders.

Murphy signed legislation Wednesday to reinstate UEZs in Bridgeton, Camden, Newark, Plainfield and Trenton until Dec. 31, 2023.

Link to full article

Late last week, the governors of New York and Pennsylvania submitted their selections for opportunity zone designations to the U.S. Department of Treasury. Those nominations are expected to be approved by Treasury to take advantage of the new federal tax incentive program.  The federal Opportunity Zone program is a new tax incentive designed to direct investor capital into various low-income and distressed areas around the country. The program affords investors the opportunity to defer and reduce capital gains that are invested in opportunity funds. In addition, an investor who holds an interest in an opportunity fund for 10 years or more does not pay any tax on the gain when the opportunity fund investment is sold or transferred.  Additional details can be found in an earlier article we published here.

A listing of New York’s 514 zone nominations can be found here.

A listing of Pennsylvania’s 300 zone nominations can be found here.

We will continue to keep you updated as more details emerge on this transformative program, including expected guidance from the Internal Revenue Service regarding qualified opportunity fund certification and qualified opportunity zone property.

The U.S. Department of Treasury’s Community Development Financial Institutions Fund has just released the list of New Jersey’s approved Opportunity Zones. The Opportunity Zones are identified by specific census tracts provided below.

The federal Opportunity Zone program is a new tax incentive designed to direct investor capital into various low-income and distressed areas around the country. On March 21, Governor Murphy submitted New Jersey’s list of eligible census tracts seeking Opportunity Zone designation.

Continue Reading New Jersey “Opportunity Zones” Just Revealed

New Opportunities for Urban and Distressed Areas

The newly enacted federal Opportunity Zone program could be a game changer for economic development and tax incentive policy here in New Jersey and across the country. The program provides a new avenue for directing investment into certain urban and distressed areas with significant tax benefits.

The Opportunity Zone program was enacted as part of the recently signed Tax Cuts and Jobs Act and provides an opportunity to defer current capital gains and reduce future gains for investing in certain funds organized to direct capital into businesses and property based in the specified zones. The designated zones are selected by the Governor of each state from certain eligible low-income community census tracts, or those eligible for New Market Tax Credit projects.

Continue Reading Gov. Murphy Announces “Opportunity Zones” Recommended to Federal Government

The New Jersey Division of Taxation has issued guidance pertaining to the state’s treatment of the federal Tax Cuts and Jobs Act’s one-time repatriation of certain foreign earnings and profits.  Under the federal Act, U.S. shareholders of controlled foreign corporations or corporations owning 10 percent or more of another foreign corporation are deemed to receive a repatriated dividend of accumulated post-1986 deferred foreign income in the last tax year beginning before January 1, 2018.

Continue Reading New Jersey Issues New Guidance on Federal Deemed Repatriation Rules

On March 13th, New Jersey Governor Murphy delivered his administration’s first budget address.  In the address and subsequent summary of the budget proposals, the Governor called for a number of different personal income tax, corporate tax and sales tax changes.  The corporate tax changes are being labeled as a “modernization” of business taxes.  Some of the key tax changes include the following:

  • Increasing the Gross Income Tax (“GIT”) deduction for property taxes paid from $10,000 to $15,000.
  • Closing the carried interest loophole in New Jersey tax.  At this point, it is not clear exactly what form this proposal will take but there is currently pending legislation which would impose a special surtax on such income and eliminate the exclusion from GIT for nonresidents performing investment/intangible management activities in New Jersey.

Continue Reading Governor Murphy Calls for Tax Reform

April 1st is almost here…
Have you filed a tax appeal on your over-assessed properties in New Jersey?


Believe it or not, April 1st is right around the corner.  And in New Jersey, that means it is time for filing real estate tax appeals for the current tax year.

New Jersey companies and property owners face some of the highest property tax burdens in the nation, thus driving up the cost of doing business in the Garden State.  Making matters worse, the federal tax changes set to take effect in 2018 are expected to affect office, retail, industrial, hospitality and multi-family property values in a significant way.

Furthermore, as the economy continues to shift away from traditional brick and mortar retail and vast corporate campuses in suburban areas, many properties have decreased in value and may need to be repurposed and reassessed for property tax purposes.  Of course, the converse is also true—in that many areas historically considered blighted or in need of redevelopment have welcomed new construction and development projects in recent years that will soon face increased property tax assessments.  In light of these issues, it is incumbent upon property owners and business tenants to review their tax bills to identify potential savings as well as possible risks of future tax increases.

Continue Reading Property Tax Appeals – Now Is the Time