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Bill > A4402
NJ A4402
NJ A4402Imposes tax on high-quantity processors of financial transactions at $0.0025 per transaction.
summary
Introduced
07/16/2020
07/16/2020
In Committee
07/16/2020
07/16/2020
Crossed Over
Passed
Dead
01/11/2022
01/11/2022
Introduced Session
2020-2021 Regular Session
Bill Summary
This bill imposes a tax on persons or entities that process 10,000 or more financial transactions through electronic infrastructure located in New Jersey during the year. The tax is $0.0025 (a quarter of a cent) per financial transaction processed in New Jersey. There are reportedly billions of financial transactions processed daily, and many of those are processed through electronic infrastructure located in New Jersey. This tax, which is on the processor but may be passed along to the purchaser or seller, can therefore potentially raise a significant amount of revenue for New Jersey. For purposes of the tax, a financial transaction is a transaction involving the purchase or sale of a financial security. Security includes, but is not limited to, a futures contract, options contract, futures option contract, swap contract, credit default swap contract, derivative, or share of stock in an entity.
AI Summary
This bill imposes a tax of $0.0025 (a quarter of a cent) per financial transaction on persons or entities that process 10,000 or more financial transactions through electronic infrastructure located in New Jersey during the calendar year. A financial transaction is defined as a transaction involving the purchase or sale of a financial security, including futures contracts, options contracts, swaps, and derivatives. The tax is filed and paid on a monthly basis and is governed by the State Uniform Tax Procedure Law. The bill is intended to raise significant revenue for New Jersey, as there are reportedly billions of financial transactions processed daily through electronic infrastructure in the state.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Assembly Financial Institutions and Insurance Hearing (19:00 10/19/2020 The public may not attend the Committee meeting in person but ma) (on 10/19/2020)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| BillText | https://www.njleg.state.nj.us/2020/Bills/A4500/4402_I1.HTM |
| Bill | https://www.njleg.state.nj.us/2020/Bills/A4500/4402_I1.PDF |
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