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Bill > A1757


NJ A1757

NJ A1757
Imposes tax on high-quantity processors of financial transactions at $0.0025 per transaction.


summary

Introduced
01/11/2022
In Committee
01/11/2022
Crossed Over
Passed
Dead
01/08/2024

Introduced Session

2022-2023 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 a transaction involving the purchase or sale of a financial security, including but not limited to futures contracts, options contracts, swaps, derivatives, and stocks. The tax is to be filed and paid on a monthly basis and will be governed by the State Uniform Tax Procedure Law. The bill provides that no financial transaction shall be taxed more than once, and the first entity processing the transaction will be subject to the tax.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/11/2022)

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