Requires State Treasurer to issue report concerning New York's taxation of New Jersey residents' income.
Impact
The proposed report must examine several critical areas including the steps New Jersey has taken to address its residents' taxation rights, the estimated tax credits given to residents, and potential measures to shift their income tax obligations from New York to New Jersey. The report aims to highlight the unfair financial burden on New Jersey commuters and demonstrates the state's commitment to reassessing tax policies that may be 'gaming' the system, draining resources from New Jersey's economy and undermining state revenues.
Summary
Senate Bill S658 requires the State Treasurer of New Jersey to provide a comprehensive report on the taxation of New Jersey residents' income by the State of New York. The bill arises in the context of rising inequities faced by New Jersey residents who work for New York-based employers but have their taxes withheld in New York. This situation has been exacerbated by remote work trends and the effects of the COVID-19 pandemic, leading to claims of unfair taxation on residents who might only occasionally travel to New York for work-related duties.
Contention
This bill could face contention stemming from debates over state rights and the legality of taxing citizens based on their employment location. Supporters argue it addresses tax inequity and protects state revenue, while opponents may concern themselves with the implications for interstate commerce and employment regulation. Additionally, the analysis required of the report regarding state laws and other jurisdictions' approaches to similar taxation issues could provoke discussions about broader tax reform in New Jersey and the efficacy of current tax credits for its residents.
Report_requirements
The report must be submitted within six months of the bill's enactment and will include assessments of various efforts the State has made, proposed protections for the public fisc, and a detailed analysis of potential legislative actions required to reform tax treatment. It will also need to address any impediments posed by existing state and federal laws that could affect realizing fair taxation for New Jersey commuters.
Establishes New Jersey Revenue Advisory Board; modifies executive State budget presentation; updates State revenue and expenditure reporting and disclosure requirements; and requires annual State financial stress testing.