BillTrack50 logo
Free Signup Login
Bill

Bill > S524

NJ S524

NJ S524
Eliminates minimum corporation business tax on New Jersey S corporations.

summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill eliminates the minimum corporation business tax on New Jersey S corporations. At present, a New Jersey S corporation is subject to the following minimum corporation business tax according to the amount of its New Jersey gross receipts. New Jersey Gross Receipts: Minimum Tax:Less than $100,000 $500$100,000 or more but less than $250,000 $750$250,000 or more but less than $500,000 $1,000$500,000 or more but less than $1,000,000 $1,500$1,000,000 or more $2,000 The purpose of this bill is to lessen the burden of double taxation upon S corporation shareholders. The bill will apply to privilege periods beginning on or after January 1, 2010.

AI Summary

This bill eliminates the minimum corporation business tax for New Jersey S corporations, which are businesses that have elected to be taxed under Subchapter S of the Internal Revenue Code and are recognized as such by New Jersey. Previously, these S corporations were subject to a tiered minimum tax based on their New Jersey gross receipts, ranging from $500 for less than $100,000 in receipts to $2,000 for $1,000,000 or more. The purpose of this change is to reduce the financial burden on S corporation shareholders, who can experience "double taxation" where profits are taxed at both the corporate and individual levels. This provision will apply to tax periods beginning on or after January 1, 2010.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
(1 Companion Bills)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...