New Jersey S 1754: Restricts authority to terminate reciprocal personal income tax agreements with other states.

Bill Text

SENATE, No. 1754

STATE OF NEW JERSEY
221st LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

Sponsored by:
Senator PAUL D. MORIARTY
District 4 (Atlantic, Camden and Gloucester)

SYNOPSIS
Restricts authority to terminate reciprocal personal income tax agreements
with other states.

CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.

S1754 MORIARTY
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EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is
not enacted and is intended to be omitted in the law.

Matter underlined thus is new matter.

AN ACT concerning reciprocal personal income tax agreements and 1
amending N.J.S.54A:9-17. 2
3
BE IT ENACTED by the Senate and General Assembly of the State 4
of New Jersey: 5
6
1. N.J.S.54A:9-17 is amended to read as follows: 7
54A:9-17. General powers of the director. 8
(a) General. The director shall administer and enforce the tax 9
imposed by this act and is authorized to make such rules and 10
regulations, and to require such facts and information to be reported 11
as he may deem necessary to enforce the provisions of this act. The 12
director may divide the State into districts in each of which a branch 13
office may be maintained by him, but in no case shall a county be 14
divided in forming a district. 15
(b) Delegation of powers. The director may delegate to any 16
officer or employee of his division such of his powers as he may 17
deem necessary to carry out efficiently the provisions of this act, 18
and the person or persons to whom such power has been delegated 19
shall possess and may exercise all of the power and perform all of 20
the duties herein conferred and imposed upon the director. 21
(c) Examination of books and witnesses. The director for the 22
purpose of ascertaining the correctness of any return, or for the 23
purpose of making an estimate of taxable income of any person, 24
shall have power to examine or to cause to have examined, by any 25
agent or representative designated by him for that purpose, any 26
books, papers, records or memoranda bearing upon the matters 27
required to be included in the return, and may require the 28
attendance of the person rendering the return or any officer or 29
employee of such person, or the attendance of any other person 30
having knowledge in the premises, and may take testimony and 31
require proof material for his information, with power to 32
administer oaths to such person or persons. 33
(d) Abatement authority. The director, on his own motion, may 34
abate any small unpaid balance of an assessment of income tax, or 35
any liability in respect thereof, if the director determines under 36
uniform rules prescribed by him that the administration and 37
collection costs involved would not warrant collection of the 38
amount due. He may also abate, on his own motion, the unpaid 39
portion of the assessment of any tax or any liability in respect 40
thereof, which is excessive in amount, or is assessed after the 41
expiration of the period of limitation properly applicable thereto, or 42
is erroneously or illegally assessed. No claim for abatement under 43
this subsection shall be filed by a taxpayer. 44

S1754 MORIARTY
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(e) The Department of the Treasury, Division of Taxation, may 1
enter into an agreement with the taxing authorities of any state 2
which imposes a tax on or is measured by income to provide that 3
compensation paid in such state to residents of this State shall be 4
exempt from such tax; in such case any compensation paid in this 5
State to residents of such state shall be exempt from New Jersey 6
personal income tax. The Division, in such agreements, may 7
provide for reciprocal withholding, employer liability, exchange of 8
information and all other matters relating to cooperation between 9
the states. Notwithstanding the provisions of this section to the 10
contrary, any agreement heretofore or hereinafter entered into, 11
notwithstanding the terms thereof concerning termination of the 12
agreement, shall not be terminated unless the termination thereof is 13
by enactment of a law directing the director to terminate the 14
agreement. 15
(cf: N.J.S.54A:9-17) 16
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2. This act shall take effect immediately and shall be 18
retroactive to October 19, 1977. 19
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STATEMENT 22
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This bill requires that the authority of the Director of the Division 24
of Taxation in the Department of the Treasury to enter into reciprocal 25
personal income tax agreements with other states is to be limited by 26
restricting the termination of any such agreement to the enactment by 27
the Legislature and the Governor of a law directing the termination of 28
an agreement. 29
This bill is retroactive to October 19, 1977, the effective date of the 30
Reciprocal Personal Income Tax Agreement between the 31
Commonwealth of Pennsylvania and the State of New Jersey. 32