The tax filing deadline and the state fiscal year will both be extended under terms of legislation authored by Senator Paul Sarlo, the chairman of the Senate Budget and Appropriations Committee, Senator Steve Oroho, the Senate Republican Budget Officer, and Senator Anthony Bucco that was approved by the Senate today.
The tax filing deadline and the state fiscal year will both be extended under terms of legislation approved by the Senate today. (Pixabay)
The bipartisan bill, S-2338, entitled the “COVID-19 Fiscal Mitigation Act,” would change the tax filing and payment deadline from April 15th to July 15th and lengthen the current fiscal year from July 1st to the end of September. The tax extensions cover the personal income tax and the corporate business tax.
“The ongoing public health crisis caused by the coronavirus pandemic is creating severe financial hardship for the people of New Jersey as well as fiscal fallout for the state,” said Senator Sarlo. “We don’t yet know the full dimensions of the financial consequences for residents, businesses and the state, but there is no doubt that we all face some hard times. The extensions will give taxpayers more time to calculate and manage their finances, and will provide state officials a workable timetable to craft a budget that addresses our critical needs.”
Senator Sarlo, Senator Oroho, who also serves on the budget committee, and Senator Bucco said the budget extension will allow the Administration and the Legislature to focus on the “new fiscal realities” and the “emergent needs” caused by the crisis.
“Every person, family, business, and government agency in New Jersey is struggling to understand the impact on their finances as a result of this unprecedented public health crisis that has shut down much of our economy and impacted the jobs of so many workers,” said Senator Oroho. “This legislation will provide taxpayers a much needed pause and give the State additional time and data to rework the upcoming budget to meet emergent needs within the confines of a rapidly changing revenue situation.”
Senators Sarlo, Oroho and Bucco said that the pandemic will cause historic and sudden declines in revenues that must be considered in crafting a nine-month “corona crisis budget” for a new Fiscal Year 2021 spending plan. The plan will be developed over the summer months, they said.
“Since we don’t know how long the underlying health crisis will last, we also don’t know how long it will take for the resulting economic crisis to subside,” said Senator Bucco. “Given that uncertainty, the challenges faced by taxpayers, and our inability to know if a State budget rushed to passage under these circumstances would truly be balanced as required by the New Jersey Constitution, changing the tax filing deadline and extending the State fiscal year are prudent moves. Time will offer clarity on our fiscal picture and guidance on the best path forward.”
The bill would have the State Treasurer provide an update on revenue projections in the spring and require a new budget proposal before the end of August.
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