New Jersey Assembly Bill A4377

New Jersey 2024-2025 Regular Session

• Introduced: 5/16/24
• Refer: 5/16/24

Caption

Permits disclosure of certain State taxpayer information to certain municipalities that administer employer payroll tax.

Impact

The bill expands the scope of State tax return information that can be disclosed to municipalities, allowing them to obtain not only employer-provided wage and tax withholding data but also other relevant tax information as necessary. This change aims to assist municipalities in verifying the accuracy of payroll reports submitted by employers and in identifying those employers who fail to report their payroll information, thereby supporting a more robust enforcement of tax regulations within their jurisdictions.

Summary

Assembly Bill A4377 aims to amend the existing laws regarding the disclosure of certain State taxpayer information to municipalities that impose an employer payroll tax. The bill is specifically targeting municipalities with populations exceeding 200,000 residents, such as Newark and Jersey City, which already have the authority to levy such taxes. Currently, these municipalities are permitted to impose an employer payroll tax of up to one percent on remuneration paid to employees. The proposed law will enhance the amount of tax information shared with these municipalities, enabling them to better manage and assess compliance with payroll tax obligations.

Contention

Despite the bill's potential benefits for municipal tax administration, it may raise concerns regarding privacy and the appropriate management of sensitive taxpayer information. Critics may argue that increased data sharing could lead to misuse or inadvertent disclosure of personal tax information, affecting taxpayer trust. Moreover, the change in discretion regarding data disclosure from the Department of Treasury's Director to municipalities could also lead to challenges in maintaining consistent standards in tax compliance and privacy protection, raising the need for clear guidelines on the usage of such data.