• Views: in the last
  • 20Week
  • 14Month
  • 129Total


  • NJ A598
  • Modernizes the distribution of gross income tax refunds by making direct deposit the default distribution method.
Introduced
(1/27/2016)
In Committee
(1/27/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill makes direct deposit the default method for the distribution of gross income tax refunds. The purpose of the bill is to modernize gross income tax refund distribution for increased efficiency. Under the bill, the Director of the Division of Taxation is required to establish direct deposit by electronic fund transfer as the default method for the distribution of gross income tax refunds for taxable years beginning in 2015 and thereafter. The bill provides that the establishment of direct deposit as the default distribution method is subject to the following conditions: -- the director must allow refund recipients the opportunity to opt out of the default direct deposit refund method in favor of an alternative method; and -- the director must determine that the State will sustain no disadvantage in establishing direct deposit as the default refund method. The bill extends the direct deposit default method for refunds from pre-2015 taxable years that have yet to be issued to the extent the division is capable of extending the method to those taxable years. With regard to the alternative method, the bill authorizes the director to choose between conventional checks and prepaid debit cards in establishing an alternative system for distributing gross income tax refunds to refund recipients. The bill requires the choice to be made based upon the director's determination that issuing refunds either by check or by prepaid debit card will be the most cost-effective alternative to the direct deposit default system established by the bill. The bill requires prepaid debit cards, issued pursuant to the bill, to have the following minimum characteristics: -- Open Loop: The prepaid debit card must be redeemable at a variety of merchants and financial institutions as opposed to a closed loop of related merchants. -- Redeemable for Products, Services or Cash: The prepaid debit card must be redeemable: (i) for products or services with merchants; and (ii) for cash at automated and manual teller terminals. -- Minimum Number of Cash Withdrawals: The prepaid debit card must enable the cardholder to complete a minimum number of domestic cash withdrawals (at least two for each gross income tax refund) at certain automated teller machines and manual teller terminals prior to incurring a charge for the completion of the transaction. Additionally, the bill defines "automated teller machine" and "manual teller terminal," and redefines a "financial institution" as a State or federally chartered bank, savings bank, savings and loan association, credit union, or other entity approved by the director.
Not specified
Introduced, Referred to Assembly Appropriations Committee  (on 1/27/2016)
 
 

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