Bill > A3754

Introduced Session

This bill gradually reduces the corporation business tax rate from 9 percent to 2.5 percent of income. For privilege periods ending between January 1, 2021 and December 31, 2021, the rate will be 7 percent. For privilege periods ending between January 1, 2022 and December 31, 2022, the rate will be 5 percent. For privilege periods ending between January 1, 2023 and December 31, 2023, the rate will be 3 percent. For privilege periods ending after December 31, 2023, the rate will 2.5 percent. For a taxpayer with less than $100,000 of income, the rate of tax will be reduced faster. Currently, the rate is 7.5 percent for taxpayers with income between $50,000 and $100,000, and 6.5 percent for taxpayers with less than $50,000 of income. Pursuant to this bill, the rate will be 3.5 percent for taxpayers with less than $100,000 of income for privilege periods ending between January 1, 2021 and December 31, 2021. For privilege periods ending after December 31, 2021, the rate will be 2.5 percent. A "privilege period" is the 12 month accounting period for which tax is due for the privilege of doing business in the State.

AI Summary

Committee Categories

Chris DePhillips (R)*,  John DiMaio (R)*,  Serena DiMaso (R)*,  Brian Bergen (R),  John Catalano (R),  Kevin Rooney (R),  Gerry Scharfenberger (R),  Parker Space (R),  Jean Stanfield (R),  Harold Wirths (R), 

Introduced, Referred to Assembly Appropriations Committee (on 03/16/2020)