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  • NJ A1494
  • Increase gross income tax rate on income exceeding $1,000,000 for taxable years 2011 and 2012 and expands gross income tax exclusion for pensions, annuities and other retirement income for certain taxpayers beginning in 2011.
Introduced
(1/27/2016)
In Committee
(1/27/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill provides a temporary adjustment to the rate of the gross income tax for taxpayers with taxable incomes exceeding $1,000,000 in taxable years beginning on or after January 1, 2011 but before January 1, 2013 (taxable year 2011 and taxable year 2012). The bill provides for adjusted income taxation at the following bracket at the following rate: over $1,000,000 is adjusted from 8.97% to 10.75%. This bill also expands the exclusion under the gross income tax for pensions, annuities and certain other retirement income for qualified taxpayers beginning with taxable year 2011. At present, qualified taxpayers that are at least 62 years of age, or by virtue of disability would be eligible to receive social security payments, and have $100,000 or less of gross income may exclude $20,000, $15,000 or $10,000 of various pension, annuity and retirement benefit income, depending on their tax filing status (i.e. joint, single and separate). This bill expands the exclusion by removing the $20,000, $15,000 and $10,000 exclusion caps, and provides full exclusions for qualified taxpayers with gross income less than $100,000. The bill also provides limited exclusions for qualified taxpayers with income exceeding $100,000 but less than $110,000 as a method of phasing out eligibility. The limited exclusion for qualified taxpayers with gross income exceeding $100,000 but less than $110,000 reduces the exclusion amount in proportion to the amount of the taxpayer's gross income that is above $100,000. This bill will remain inoperative until the enactment of Senate Bill No. 2970 or Assembly Bill No. 4203 of 2011 that provides for State Fiscal Year 2012, when added to the funding in the State Fiscal Year 2012 annual appropriations act, that all school districts receive full funding of State aid determined pursuant to the "School Funding Reform Act of 2008."
Budget
Introduced, Referred to Assembly Budget Committee  (on 1/27/2016)
 
 

Date Chamber Action Description
1/27/2016 A Introduced, Referred to Assembly Budget Committee
Date Motion Yea Nay Other
None specified