New Jersey Senate Bill S214

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Ends COVID-related extension of time for statute of limitations on tax due and interest on overpayment of tax paid.

Impact

The bill's implementation is expected to affect numerous taxpayers who had previously enjoyed extended deadlines for filing their taxes and receiving refunds during the state of emergency. By re-establishing clear timelines for tax due dates and interest payments, it seeks to clarify the obligations of taxpayers and the procedures that the state will follow in taxing matters. However, this may create pressure on taxpayers who may have relied on the more lenient COVID-related extensions, thereby impacting their financial planning and compliance.

Summary

Senate Bill S214 aims to amend existing laws regarding the statute of limitations on tax payments and the interest on overpayments due to the COVID-19 pandemic. Specifically, the bill terminates the extensions that were provided to taxpayers in light of the public health emergency declared by the Governor of New Jersey. The notable shift in policy is that the previously extended dates for the filing of taxes and payment of interest will now be tied directly to the conclusion of the public health emergency, rather than remaining open-ended as previously enacted under the law.

Contention

Critics of the bill may argue that reverting back to usual timelines for tax payments adds undue stress on taxpayers still recovering from the financial impacts of the pandemic. The sudden shift away from extended deadlines may be viewed as punitive, especially for those who found these extensions critical in managing their financial responsibilities during uncertain times. Conversely, supporters of the bill argue that it establishes necessary fiscal discipline and clarity in tax regulations, moving New Jersey towards a post-pandemic normality.