Bill
Bill > S2969
NJ S2969
NJ S2969Increase gross income tax rate on income exceeding $1,000,000 for taxable years 2011 and 2012 and expands gross income tax exclusion for pensions, annuities and other retirement income for certain taxpayers beginning in 2011.
summary
Introduced
In Committee
Crossed Over
Passed
Dead
Introduced Session
2010-2011 Regular Session
Bill Summary
This bill provides a temporary adjustment to the rate of the gross income tax for taxpayers with taxable incomes exceeding $1,000,000 in taxable years beginning on or after January 1, 2011 but before January 1, 2013 (taxable year 2011 and taxable year 2012). The bill provides for adjusted income taxation at the following bracket at the following rate: over $1,000,000 is adjusted from 8.97% to 10.75%. This bill also expands the exclusion under the gross income tax for pensions, annuities and certain other retirement income for qualified taxpayers beginning with taxable year 2011. At present, qualified taxpayers that are at least 62 years of age, or by virtue of disability would be eligible to receive social security payments, and have $100,000 or less of gross income may exclude $20,000, $15,000 or $10,000 of various pension, annuity and retirement benefit income, depending on their tax filing status (i.e. joint, single and separate). This bill expands the exclusion by removing the $20,000, $15,000 and $10,000 exclusion caps, and provides full exclusions for qualified taxpayers with gross income less than $100,000. The bill also provides limited exclusions for qualified taxpayers with income exceeding $100,000 but less than $110,000 as a method of phasing out eligibility. The limited exclusion for qualified taxpayers with gross income exceeding $100,000 but less than $110,000 reduces the exclusion amount in proportion to the amount of the taxpayers gross income that is above $100,000. This bill will remain inoperative until the enactment of Senate Bill No. 2970 or Assembly Bill No. 4203 of 2011 that provides for State Fiscal Year 2012, when added to the funding in the State Fiscal Year 2012 annual appropriations act, that all school districts receive full funding of State aid determined pursuant to the "School Funding Reform Act of 2008."
AI Summary
This bill temporarily increases the gross income tax rate for individuals earning over $1,000,000, raising it from 8.97% to 10.75% for taxable years 2011 and 2012, and also expands the exclusion for retirement income, such as pensions and annuities, for qualified taxpayers starting in 2011. Previously, taxpayers aged 62 or older, or disabled, with gross incomes of $100,000 or less could exclude a limited amount of retirement income ($20,000, $15,000, or $10,000 depending on filing status), but this bill removes those caps for those with less than $100,000 in gross income, allowing full exclusion, and provides a phased-out exclusion for those with incomes between $100,000 and $110,000. The bill will only become effective upon the enactment of specific other legislation (Senate Bill No. 2970 or Assembly Bill No. 4203 of 2011) that ensures full funding for school districts under the "School Funding Reform Act of 2008."
Committee Categories
Budget and Finance
Sponsors (9)
Jim Beach (D)*,
Robert Gordon (D)*,
Raymond Lesniak (D)*,
Donald Norcross (D)*,
Brian Stack (D)*,
Jim Whelan (D)*,
Sandra Cunningham (D),
Linda Greenstein (D),
Teresa Ruiz (D),
Last Action
Substituted by A4202 (on 06/29/2011)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bills/BillView.asp?BillNumber=S2969 | 04/25/2013 |
| Bill | https://www.njleg.state.nj.us/2010/Bills/S3000/2969_I1.HTM | 05/28/2012 |
| Legislative Fiscal Estimate 7/12/11; as introduced | https://www.njleg.state.nj.us/2010/Bills/S3000/2969_E1.HTM | 04/23/2012 |
| Statement SBA 6/27/11 | https://www.njleg.state.nj.us/2010/Bills/S3000/2969_S1.HTM | 04/23/2012 |
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