Bill
Bill > A1255
NJ A1255
NJ A1255Requires State Treasurer to issue report concerning New York's taxation of New Jersey residents' income.
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 the State Treasurer to issue a report to the Legislature concerning New York's taxation of New Jersey resident's income. The report is required to include: (1) an explanation of efforts the State has taken to address the inequity of New York's taxation of New Jersey residents' income, (2) the estimated total credits the State has granted, or will grant, to New Jersey residents for income taxes paid to New York in each tax year beginning with Tax Year 2011 and ending with an estimate for Tax Year 2020, (3) a discussion of steps that the State may take to protect the State of New Jersey's public fisc, and the paychecks of New Jersey residents, from New York and its political subdivisions taxing authority, (4) an estimate of New Jersey residents' tax savings should the State be able to shift residents' income tax payments from New York and its political subdivisions to New Jersey, (5) a discussion of any state or federal statutory or case law impediments to successfully achieving equitable taxation of New Jersey commuters working for employers in New York, (6) an analysis of how other states and jurisdictions address the tax implications of residents living in one state and commuting to another, (7) a discussion of the State's efforts to participate in the litigation between the State of New Hampshire and the Commonwealth of Massachusetts concerning Massachusetts' taxation of New Hampshire residents, and (8) recommendations as to how the State may resolve the inequitable tax treatment of New Jersey commuters working for employers in New York. The State Treasurer is permitted to contract with a third party to prepare all or a portion of the report. The report is to be delivered within six months of the bill's enactment.
AI Summary
This bill mandates that the State Treasurer of New Jersey must produce a report for the Legislature within six months of the bill's enactment, detailing New York's taxation of New Jersey residents' income. This report will explain New Jersey's actions to address the perceived unfairness of New York taxing income earned by New Jersey residents who may be working remotely from New Jersey for New York-based employers, and will estimate the tax credits New Jersey has provided to these residents for taxes paid to New York. It will also discuss potential measures to safeguard New Jersey's finances and residents' paychecks from New York's taxing authority, estimate potential tax savings for New Jersey residents if their income taxes were paid to New Jersey instead of New York, and examine any legal obstacles to achieving fair taxation for New Jersey commuters working in New York. Furthermore, the report will analyze how other states handle similar cross-border commuting tax situations, detail New Jersey's involvement in a lawsuit between New Hampshire and Massachusetts regarding taxation, and offer recommendations for resolving the inequitable tax treatment of New Jersey commuters. The State Treasurer is allowed to hire a third party to assist in preparing this report.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced, Referred to Assembly Commerce and Economic Development 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/A1255 |
| BillText | https://pub.njleg.gov/Bills/2026/A1500/1255_I1.HTM |
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