Bill > A3539

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. Previously, the Director had broader authority to enter into and terminate these agreements, which allow for tax exemptions and reciprocal withholding between states, such as the one between New Jersey and Pennsylvania. Now, 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 the reciprocal agreement with Pennsylvania became effective.