Bill > A10

Introduced Session

This bill increases the gross income tax rate applicable to taxpayers with gross income exceeding $1,000,000 in taxable years beginning on or after January 1, 2020. The gross income tax rate under current law is 8.97 percent for income between $1,000,000 and $5,000,000, and 10.75 percent for income over $5,000,000. This bill applies the 10.75 percent rate to gross income exceeding $1,000,000. The bill also provides to eligible gross income taxpayers a tax rebate of either $500 or, if the taxpayer paid less than that for the tax year, the amount of actual tax paid. The rebate is subject to annual appropriation by the Legislature. To be eligible for the rebate the taxpayer must be a resident of the State, have at least one dependent child, have a gross income tax liability greater than zero, and have gross income not exceeding: $150,000 if (1) married and filing jointly, (2) filing as a head of household, or (3) filing as a surviving spouse; or $75,000 if (1) married and filing separately, or (2) individuals filing as a single taxpayer. The director of the Division of Taxation will issue rebates to eligible taxpayers between July 1 and July 31, or between July 1 and the end of the year for taxpayers who were granted gross income tax return extensions.

AI Summary

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Dawn Addiego (D)*,  Craig Coughlin (D)*,  Thomas Giblin (D)*,  Linda Greenstein (D)*,  Teresa Ruiz (D),  Shirley Turner (D), 

Approved P.L.2020, c.94. (on 09/29/2020)