The Senate unanimously passed today legislation sponsored by Senator Steven Oroho (R-Sussex, Warren, Morris) to facilitate charitable donations in New Jersey.
“If someone from another state wants to give to a New Jersey charity, that doesn’t make them a New Jersey resident and it should not subject them to New Jersey’s income tax,” Oroho said. “There should be a tax benefit, not penalty for people who donate to charitable causes in this state.”
Oroho’s bipartisan Senate bill 2532 disallows the Division of Taxation to consider a person’s charitable contributions as a factor in determining one’s income tax obligations.
Prior to publication of informal advice in 2005, the Division of Taxation had regarded charitable contributions, among other factors, as an indicator of whether a taxpayer is domiciled in a state.
“Considering the high cost of overcoming unforeseen tragedies, such as Superstorm Sandy, it is more important than ever that people are not deterred from helping New Jersey families and small businesses,” Oroho concluded.
This bill awaits action by the full Assembly.