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Old 07-01-2009, 02:57 PM
 
636 posts, read 1,299,893 times
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New Jersey --Multiple Taxes: Governor Signs State Spending Plan
The $29 billion state budget signed by New Jersey Gov. Jon S. Corzine on June 29, 2009, imposes additional corporation (business) taxes (CBTs) and personal income taxes; increases taxes on cigarettes and alcohol, except beer; and eliminates property tax rebates for certain individuals. The budget includes funding that is dependent upon the passage of separate legislative measures, as indicated, below. A.B. 4102, A.B. 4103, and A.B. 4104 also were signed by the governor on June 29, 2009.

Surcharge Extension

The spending plan extends the 4% surcharge imposed on corporations that are subject to the CBT. The surcharge is due to expire for privilege periods ending before July 1, 2009. It will be extended to apply to privilege periods ending before July 1, 2010 (A.B. 4105).

Decoupling of Recovery Act

The measure decouples the CBT from the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) provision allowing taxpayers to defer the recognition of discharge of indebtedness income arising from a qualified reacquisition in 2009 and 2010 of corporate or business debt instruments issued by the taxpayer or a related person. Any amount excluded from federal taxable income would have to be added back for CBT purposes. However, for tax years beginning after 2014 and before 2019, the amounts deferred for federal purposes may be excluded for purposes of the CBT to prevent double taxation by the state (A.B. 4105).

Income Tax Increase for High-Income Taxpayers

The budget increases the gross (personal) income tax rate. For tax years beginning after 2008 and before 2010, the top personal income tax rates for taxpayers with taxable income exceeding $400,000 will be (1) 8% if taxable income is over $400,000 but not over $500,000; (2) 10.25% if taxable income is over $500,000 but not over $1 million; and (3) 10.76% if taxable income is over $1 million. No additions to tax or penalties will be imposed for insufficient payment of estimated tax that otherwise would be due on salaries, wages, and other remuneration received before October 1, 2009, upon which the new tax rates will be imposed. In addition, employers will not be subject to interest, penalties, or other costs that otherwise would be imposed for insufficient withholding as a result of the new tax rates (A.B. 4102).

Property Tax Deduction Limitation

For the tax year beginning January 1, 2009, the deduction of up to $10,000 for property taxes paid will be limited for high-income taxpayers. The deduction will be limited to a maximum of $5,000 for a taxpayer who has gross income over $150,000, but not over $250,000, if the taxpayer is not 65 years old or older, blind, or disabled. For such a taxpayer who has gross income exceeding $250,000, no deduction will be allowed (A.B. 4102).

Taxation of Lottery Winnings

Currently, winnings from the New Jersey lottery are exempt from personal income tax. For tax years beginning after 2008, New Jersey lottery winnings will be included in gross income if the prize exceeds $10,000. Withholding will be required on such winnings as would be determined by the director of taxation (A.B. 4102).

Insurance Tax Increase

The rate of tax on all insurers, other than marine insurers, will be increased to 2.25% of taxable premiums for taxes payable in 2009, and will revert back to 1% for taxes payable in 2010 and thereafter. However, an additional 0.05% will be imposed on taxable premiums, which will be effective upon enactment. Comparable rates also will be imposed on accident, health, and legal insurance companies. The tax rate imposed for surplus line coverage and the tax rate imposed on gross premiums levied on every insured in the state procuring or renewing insurance with any unauthorized foreign or alien insurer will both increase from 3% to 5%, effective upon enactment. Additionally, for 2009, "insurance company" will include dental service corporations, which thus will be subject to the 2.25% tax imposed on insurance companies (A.B. 4108).

Cigarette Tax Rate Increase

The measure increases the cigarette tax rate by 12.5 cents per pack of 20 cigarettes to $2.70 per pack (A.B. 4103). It also increases the tax rate imposed on liquor, wine, vermouth, sparkling wine, and hard cider, but not beer, by 25% (A.B. 4104).

Property Tax Rebates

The measure eliminates property tax rebates for non-senior citizen, non-disabled homeowners with incomes over $75,000, with seniors and disabled individuals still qualifying with incomes up to $150,000. Two-thirds of last year's rebate amount will be provided to homeowners earning between $50,000 and $75,000. Households earning up to $50,000 will receive last year's rebate amount. The legislation also will maintain the Senior and Disabled Citizens' Property Tax Freeze Program and eliminate non-senior tenants from the homestead rebate program in fiscal year 2010 (A.B. 4100).

A.B. 4100, Laws 2009, effective July 1, 2009; A.B. 4102, Laws 2009, effective June 29, 2009; A.B. 4103, Laws 2009, effective July 1, 2009; A.B. 4104, Laws 2009, effective July 1, 2009; Press Release, Office of Gov. Jon S. Corzine, June 26, 2009
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Old 07-01-2009, 03:38 PM
 
Location: 32°19'03.7"N 106°43'55.9"W
8,290 posts, read 18,224,873 times
Reputation: 7781
That's really tough to take. You have to give credit to Corzine for having the balls to pass this during an election year. I guess he is counting on the various alphabet soup agencies that throw their imperial weight behind his party every 2 years to do so again.
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Old 07-01-2009, 04:21 PM
 
377 posts, read 1,027,995 times
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I am so glad to be getting out of NJ. This is crazy. I cannot believe that he is eliminating rebates if you make over 75k a year. It is hard to live in NJ if you make less than that. I consider making 100k a year middle class in NJ. I can't wait to move to Delaware.
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Old 07-01-2009, 04:38 PM
 
Location: Hoboken
19,889 posts, read 17,164,914 times
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Quote:
Originally Posted by mike0421 View Post
That's really tough to take. You have to give credit to Corzine for having the balls to pass this during an election year. I guess he is counting on the various alphabet soup agencies that throw their imperial weight behind his party every 2 years to do so again.

Nah if he had balls he would cut spending. But the state workers and the municipalities would have to steal less. Couldn't have that.
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Old 07-01-2009, 04:50 PM
 
Location: 32°19'03.7"N 106°43'55.9"W
8,290 posts, read 18,224,873 times
Reputation: 7781
Quote:
Originally Posted by shorebaby View Post
Nah if he had balls he would cut spending. But the state workers and the municipalities would have to steal less. Couldn't have that.
Specific municipalities, yes. I think the rural and suburban muncipalities receive way less in state aid. I know this is so when it comes to the education budget. The big receivers all have one thing in common: their residents go for the "D"s about 7 or 8 to 1. And that's if you have Karen Ann Quinlan heading the ticket. If you add a pulse to it, then the ratio goes up to about 9 to 1.
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Old 07-01-2009, 04:56 PM
 
Location: Hoboken
19,889 posts, read 17,164,914 times
Reputation: 3140
Quote:
Originally Posted by mike0421 View Post
Specific municipalities, yes. I think the rural and suburban muncipalities receive way less in state aid. I know this is so when it comes to the education budget. The big receivers all have one thing in common: their residents go for the "D"s about 7 or 8 to 1. And that's if you have Karen Ann Quinlan heading the ticket. If you add a pulse to it, then the ratio goes up to about 9 to 1.

I wouldn't know anything about that, I live in pristine Hudson County.
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Old 07-01-2009, 08:12 PM
 
268 posts, read 711,686 times
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Corzine needs to go!!! I'm voting for the other guy comes election time, no doubt. He has been a trainwreck the entire time he has been in office.

All he has done is increase taxes the entire time he has been in office. First it was sales tax, now he's killing rebates and deductions and imposing additional taxes. I mean come on give me a break, how much of this crap are the citizens of NJ suppose to endure?
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Old 07-01-2009, 08:58 PM
 
Location: New Jersey
3,431 posts, read 3,877,919 times
Reputation: 2735
Quote:
Originally Posted by ghuber View Post
All he has done is increase taxes the entire time he has been in office.
the entire time ??

I got my full 20% rebate on my property taxes, for 3 of his 4 years

if you think Christie is the savior, you're going to be sorely disappointed
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Old 07-01-2009, 09:20 PM
 
377 posts, read 1,027,995 times
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I will not be living here in Nov., but if I was I would absolutely vote for Christie. I didn't vote for Corslime the first time and I wouldn't vote for him this time either. I am not being rude, but honestly we can't afford him being in office right now. I know this is normally a liberal state, but it really comes down to money.
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Old 07-01-2009, 10:41 PM
 
636 posts, read 1,299,893 times
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Quote:
Originally Posted by JG183 View Post
the entire time ??

I got my full 20% rebate on my property taxes, for 3 of his 4 years

if you think Christie is the savior, you're going to be sorely disappointed
We KNOW Corzine is a problem, that much is for sure.
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