This bill which had been in the proposal stage for many months has created a political backlash throughout the State of New Jersey. This multi-part bill will increase New Jersey’s gas tax, for the first time since 1988, by 23 cents to 37.5 cents a gallon. The tax increase will go into effect no sooner than November 1 or 15 days after it is signed by Governor Christie, yielding an additional $1.16 billion a year in dedicated revenue for transportation projects.
In addition to the increase in the gas tax, this bill will cut $1.4 billion in estate, sales and income taxes as follows:
Many residents have contemplated changing their domicile and moving out of New Jersey due to the onerous estate tax laws currently in place. The phase-out of the estate tax should help stem this flight. High-net-worth individuals should review their estate planning documents in light of the repeal of the New Jersey estate tax. Estate documents may need changes to ensure proper funding of credit shelter and marital trusts at the death of the first spouse, titling of assets and life insurance needs may change in light of the repeal of the New Jersey estate tax.
Please contact your local Withum tax advisor to discuss how the change in the New Jersey tax law impacts your individual situation.
|Jodi Kleuskens, CPA, MAcc
T (970) 925 7382
To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.