Bill Text: NJ A2924 | 2014-2015 | Regular Session | Introduced
Bill Title: Modernizes the distribution of gross income tax refunds by making direct deposit the default distribution method.
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Engrossed - Dead) 2014-12-15 - Received in the Senate, Referred to Senate Budget and Appropriations Committee [A2924 Detail]
Download: New_Jersey-2014-A2924-Introduced.html
Sponsored by:
Assemblyman JOSEPH A. LAGANA
District 38 (Bergen and Passaic)
SYNOPSIS
Modernizes the distribution of gross income tax refunds by making direct deposit the default distribution method.
CURRENT VERSION OF TEXT
As introduced.
An Act modernizing the distribution of gross income tax refunds, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For gross income tax refunds due for taxable years beginning on or after January 1, 2014, the Director of the Division of Taxation shall establish the default system for distributing gross income tax refunds as electronic fund transfer for direct deposit into a recipient's account held by a financial institution. The director shall allow a gross income tax refund recipient the opportunity to elect to receive the refund via conventional check as an alternative to the direct deposit default.
b. To the extent the Division of Taxation is capable of implementation, gross income tax refunds that have yet to be issued on or after the date of enactment of this section for taxable years beginning before January 1, 2014 shall be issued in accordance with this section.
c. As used in this section:
"Financial institution" means a State or federally chartered bank, savings bank, savings and loan association, credit union, or other entity approved by the director, which owns or operates branch office teller terminals or automated teller machines.
2. This act shall take effect immediately.
STATEMENT
This bill makes direct deposit the default distribution method for gross income tax refunds. The purpose of this bill is to modernize gross income tax refund distribution for increased efficiency.
The bill makes electronic fund transfer direct deposit the default mechanism for gross income tax refunds for taxable years beginning in 2014 and thereafter. The bill allows refund recipients to opt out of the default direct deposit refund method in favor of a conventional check. The bill extends the direct deposit default for refunds from pre-2014 taxable years that have yet to be issued to the extent capable of implementation by the Division of Taxation.
