Bill
Bill > S1116
NJ S1116
Imposes tax on high-quantity processors of financial transactions at $0.0025 per transaction.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 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. The tax applies to transactions involving the purchase or sale of financial securities, including but not limited to futures contracts, options contracts, swap contracts, derivatives, and stocks. The tax must be filed and paid on a monthly basis, and the Director of the Division of Taxation is responsible for promulgating rules and regulations to implement the tax. The bill will take effect 90 days after enactment.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1116 |
| BillText | https://pub.njleg.gov/Bills/2024/S1500/1116_I1.HTM |
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