Establishes 90-day State tax amnesty period ending no later than January 15, 2026; dedicates revenues collected during tax amnesty period for Stabilization Aid to school districts; appropriates up to $15 million.
A5013 introduces substantive alterations to existing taxation laws in New Jersey by addressing the accumulation of unpaid State taxes and offering a structured path for taxpayers to resolve these liabilities with reduced penalties. All revenues gathered through this tax amnesty are earmarked for the newly established Stabilization Aid Account, aimed at aiding school districts that face reductions in State funding compared to previous years. This dual approach of alleviating taxpayer responsibility and supporting educational institutions reflects a strategic initiative in managing both fiscal recovery and educational resource allocation.
Assembly Bill A5013 establishes a 90-day State tax amnesty period, concluding no later than January 15, 2026. This program allows taxpayers who have outstanding State tax liabilities incurred from tax returns due between September 1, 2017, and December 31, 2024, to pay their owed taxes with a reduction of applicable interest and without facing penalties typically associated with late payments. Under this amnesty program, taxpayers can benefit from paying only half of the interest owed, thus providing a significant financial relief in reducing their tax liabilities during the amnesty window.
Notably, the bill introduces a five percent penalty applicable to taxpayers who fail to meet their obligations within the amnesty period. This stipulation may lead to contention amongst fiscal conservatives who may see additional penalties as an unfair burden, while proponents argue that it ensures compliance and accountability. Moreover, the requirement for school districts to submit a detailed application for receiving Stabilization Aid can be seen as a bureaucratic hurdle, which critics may contend could delay necessary funding and support for under-resourced school systems.