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NJ S2116
NJ S2116Restricts authority to terminate reciprocal personal income tax agreements with other states.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill requires that the authority of the Director of the Division of Taxation in the Department of the Treasury to enter into reciprocal personal income tax agreements with other states is to be limited by restricting the termination of any such agreement to the enactment by the Legislature and the Governor of a law directing the termination of an agreement. This bill is retroactive to October 19, 1977, the effective date of the Reciprocal Personal Income Tax Agreement between the Commonwealth of Pennsylvania and the State of New Jersey.
AI Summary
This bill amends existing law to restrict the authority of the Director of the Division of Taxation in the Department of the Treasury to terminate reciprocal personal income tax agreements with other states. Currently, the Director has the power to enter into these agreements, which allow for tax exemptions on compensation paid in one state to residents of another, and can include provisions for reciprocal withholding and information exchange. However, this bill mandates that any such agreement, regardless of its original terms regarding termination, can only be ended if both the Legislature and the Governor enact a specific law directing the Director to terminate it. This change is made retroactive to October 19, 1977, the date an agreement between Pennsylvania and New Jersey took effect.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/13/2026)
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/2026/S2116 |
| BillText | https://pub.njleg.gov/Bills/2026/S2500/2116_I1.HTM |
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