Legislation sponsored by Senator Jon Bramnick that combats New York State's excessive and unfair taxation of New Jersey residents was signed into law today.
"The signing of my legislation will turn the tables in the fight against New York State's harsh treatment of New Jersey taxpayers," said Bramnick (R-21). "Republicans in the Legislature have fought for years to do something about New York's heavy-handed tactics that abuse employees who live here but work for entities across the state line. This law is a good first step toward much needed reforms to end the current tax imbalance."
New York aggressively taxes Garden State residents who are paid by New York employers. Taxpayers face generally higher tax rates, and although they receive a credit when they file as New Jersey residents, New York ends up keeping the revenue. Estimates indicate the cost to taxpayers could exceed $3 billion.
The stacked deck has become more obvious with technological advances and more people working from home and never setting foot in New York.
Senator Bramnick's bill, A-4694/S-3128, amends existing law to adopt a similar aggressive tax treatment for nonresidents who work for New Jersey employers.
The new law will also establish a pilot program overseen by the New Jersey Economic Development Authority (EDA) to incent New York businesses to assign New Jersey resident employees to locations within the state. Companies who are awarded grants under this program must commit to provide bonuses or increased compensation to their employees relocating to New Jersey offices.
Grants awarded under the program will not exceed $500,000 and a total of $35 million was made available for the purpose of funding the program.
"New Jersey is being played by unjustifiable policies that not only cost individuals and families money, but also rob the State of as much as $1 billion in revenue," Bramnick added. "We will not allow out-of-state politicians take advantage of New Jerseyans. Workers living in New Jersey will now be able to hold on to more of their money because of this new law."