Governor Christie today signed into law legislation sponsored by Senator Steven Oroho (R-Sussex, Warren, Morris) to facilitate charitable donations in New Jersey.
“We should encourage donations to charities in New Jersey, not penalize a person’s generosity,” said Oroho. “If someone from another state wants to give to a charitable cause here it doesn’t make them a resident of New Jersey and they should not be faced with paying New Jersey income tax because of their good will.”
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.
“We saw first hand with Superstorm Sandy how important the overwhelming generosity from thousands across the nation was in helping our families and businesses regain their footing,” Oroho added. “We can’t have tax laws deter people from helping others in times of need.”