Tax Changes Made in NJ -
Does it Affect You?
Governor Christie signed new legislation to raise money for the Transportation Trust fund to help repair New Jersey's roads, bridges and various other infrastructure.
The new law's major points include:
- An increase in the tax on gasoline in the amount of 23-cents per gallon effective November 1, 2016.
- A complete phase-out of New Jersey's Estate Tax. Effective January 1, 2017, the NJ tax exemption will increase from $675,000 to $2,000,000. This means that individuals dying on or after January 1, 2017 can leave $2,000,000 to children or other Class A beneficiaries and not be subject to any NJ Estate Tax. On January 1, 2018 the NJ Estate Tax will be completely eliminated.
- Increasing pension and retirement income tax exclusions, which are only available to taxpayers with $100,000 or less in gross income, are 62 years of age or older or those who, because of a disability, are eligible for Social Security Benefits. This exclusion will be phased in and not immediately implemented.
- Effective January 1, 2017 a slight reduction to the sales tax from 7% to 6.875%. In 2018, the rate will further decrease to 6.625%.
- Repeal of the reciprocal tax agreement with Pennsylvania.
For more information on these tax law changes,
please contact Buckno Lisicky & Company.