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Bill > S2902
NJ S2902
NJ S2902Imposes tax on high-quantity processors of financial transactions at $0.0025 per transaction.
summary
Introduced
09/14/2020
09/14/2020
In Committee
09/14/2020
09/14/2020
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 processed through electronic infrastructure located in New Jersey on persons or entities that process 10,000 or more financial transactions in a calendar year. A financial transaction is defined as any transaction involving the purchase or sale of a financial security, such as a futures contract, options contract, or stock. The tax must be filed and paid monthly, and the Director of the Division of Taxation will promulgate rules and regulations to effectuate the provisions of the bill. The bill aims to raise revenue for New Jersey by taxing the high-volume processing of financial transactions in the state.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 09/14/2020)
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/S3000/2902_I1.HTM |
| Bill | https://www.njleg.state.nj.us/2020/Bills/S3000/2902_I1.PDF |
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