Bill Text: NJ A598 | 2014-2015 | Regular Session | Introduced
Bill Title: Re-establishes 6.37 percent as top marginal gross income tax rate.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-01-16 - Introduced, Referred to Assembly Appropriations Committee [A598 Detail]
Download: New_Jersey-2014-A598-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblyman JAY WEBBER
District 26 (Essex, Morris and Passaic)
SYNOPSIS
Re-establishes 6.37 percent as top marginal gross income tax rate.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act re-establishing 6.37 percent as the top marginal gross income tax rate, amending N.J.S.54A:2-1.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.54A:2-1 is amended to read as follows:
54A:2-1. Imposition of tax. There is hereby imposed a tax for each taxable year (which shall be the same as the taxable year for federal income tax purposes) on the New Jersey gross income as herein defined of every individual, estate or trust (other than a charitable trust or a trust forming part of a pension or profit-sharing plan), subject to the deductions, limitations and modifications hereinafter provided, determined in accordance with the following tables with respect to taxpayers' taxable income:
a. For married individuals filing a joint return and individuals filing as head of household or as surviving spouse for federal income tax purposes:
(1) for taxable years beginning on or after January 1, 1991 but before January 1, 1994:
If the taxable income is: The tax is:
Not over $20,000.00.......... 2% of taxable income
Over $20,000.00 but not
over $50,000.00............. $400.00 plus 2.5% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00.............. $1,150.00 plus 3.5% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00.............. $1,850.00 plus 5.0% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00............. $2,350.00 plus 6.5% of the
excess over $80,000.00
Over $150,000.00............... $6,900.00 plus 7.0% of the
excess over $150,000.00
(2) for taxable years beginning on or after January 1, 1994 but before January 1, 1995:
If the taxable income is: The tax is:
Not over $20,000.00.............. 1.900% of taxable income
Over $20,000.00 but not
over $50,000.00................ $380.00 plus 2.375% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00.............. $1,092.50 plus 3.325% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00.............. $1,757.50 plus 4.750% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00............. $2,232.50 plus 6.175% of the
excess over $80,000.00
Over $150,000.00 ............. $6,555.00 plus 6.650% of the
excess over $150,000.00
(3) for taxable years beginning on or after January 1, 1995 but before January 1, 1996:
If the taxable income is: The tax is:
Not over $20,000.00............. 1.700% of taxable income
Over $20,000.00 but not
over $50,000.00................ $340.00 plus 2.125% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00.............. $977.50 plus 2.975% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00.............. $1,572.50 plus 4.250% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00............. $1,997.50 plus 6.013% of the
excess over $80,000.00
Over $150,000.00 ............. $6,206.60 plus 6.580% of the
excess over $150,000.00
(4) for taxable years beginning on or after January 1, 1996 but before January 1, 2004:
If the taxable income is: The tax is:
Not over $20,000.00............ 1.400% of taxable income
Over $20,000.00 but not
over $50,000.00................ $280.00 plus 1.750% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00.............. $805.00 plus 2.450% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00.............. $1,295.50 plus 3.500% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00............. $1,645.00 plus 5.525% of the
excess over $80,000.00
Over $150,000.00 ............. $5,512.50 plus 6.370% of the
excess over $150,000.00
(5) for taxable years beginning on or after January 1, 2004 but before January 1, 2010:
If the taxable income is: The tax is:
Not over $20,000.00 ........... 1.400% of taxable income
Over $20,000.00 but not
over $50,000.00 ................ $280.00 plus 1.750% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00 ............. $805.00 plus 2.450% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00 ............. $1,295.50 plus 3.500% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00 ............ $1,645.00 plus 5.525% of the
excess over $80,000.00
Over $150,000.00 but not
over $500,000.00 ............ $5,512.50 plus 6.370% of the
excess over $150,000.00
Over $500,000.00 ............ $27,807.50 plus 8.970% of the
excess over $500,000.00
(6) for taxable years beginning on or after January 1, 2010:
If the taxable income is: The tax is:
Not over $20,000.00 ........... 1.400% of taxable income
Over $20,000.00 but not
over $50,000.00 ................ $280.00 plus 1.750% of the
excess over $20,000.00
Over $50,000.00 but not
over $70,000.00 ............. $805.00 plus 2.450% of the
excess over $50,000.00
Over $70,000.00 but not
over $80,000.00 ............. $1,295.50 plus 3.500% of the
excess over $70,000.00
Over $80,000.00 but not
over $150,000.00 ............ $1,645.00 plus 5.525% of the
excess over $80,000.00
Over $150,000.00 ............ $5,512.50 plus 6.370% of the
excess over $150,000.00
b. For married individuals filing separately, unmarried individuals other than individuals filing as head of household or as a surviving spouse for federal income tax purposes, and estates and trusts:
(1) for taxable years beginning on or after January 1, 1991 but before January 1, 1994:
If the taxable income is: The tax is:
Not over $20,000.00............ 2% of taxable income
Over $20,000.00 but not
over $35,000.00................ $400.00 plus 2.5% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00................ $775.00 plus 5.0% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00.............. $1,025.00 plus 6.5% of the
excess over $40,000.00
Over $75,000.00................ $3,300.00 plus 7.0% of the
excess over $75,000.00
(2) for taxable years beginning on or after January 1, 1994 but before January 1, 1995:
If the taxable income is: The tax is:
Not over $20,000.00...... 1.900% of taxable income
Over $20,000.00 but not
over $35,000.00......... $380.00 plus 2.375% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00................ $736.25 plus 4.750% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00.............. $973.75 plus 6.175% of the
excess over $40,000.00
Over $75,000.00............... $3,135.00 plus 6.650% of the
excess over $75,000.00
(3) for taxable years beginning on or after January 1, 1995 but before January 1, 1996:
If the taxable income is: The tax is:
Not over $20,000.00......... 1.700% of taxable income
Over $20,000.00 but not
over $35,000.00................ $340.00 plus 2.125% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00................ $658.75 plus 4.250% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00.............. $871.25 plus 6.013% of the
excess over $40,000.00
Over $75,000.00............... $2,975.80 plus 6.580% of the
excess over $75,000.00
(4) for taxable years beginning on or after January 1, 1996 but before January 1, 2004:
If the taxable income is: The tax is:
Not over $20,000.00............ 1.400% of taxable income
Over $20,000.00 but not
over $35,000.00................ $280.00 plus 1.750% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00................ $542.50 plus 3.500% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00.............. $717.50 plus 5.525% of the
excess over $40,000.00
Over $75,000.00............... $2,651.25 plus 6.370% of the
excess over $75,000.00
(5) for taxable years beginning on or after January 1, 2004 but before January 1, 2010:
If the taxable income is: The tax is:
Not over $20,000.00 ............ 1.400% of taxable income
Over $20,000.00 but not
over $35,000.00 ............... $280.00 plus 1.750% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00 ............... $542.50 plus 3.500% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00 ............. $717.50 plus 5.525% of the
excess over $40,000.00
Over $75,000.00 but not
over $500,000.00 ............. $2,651.25 plus 6.370% of the
excess over $75,000.00
Over $500,000.00 ............... $29,723.75 plus 8.970% of the
excess over $500,000.00
(6) for taxable years beginning on or after January 1, 2010:
If the taxable income is: The tax is:
Not over $20,000.00 ............ 1.400% of taxable income
Over $20,000.00 but not
over $35,000.00 ............... $280.00 plus 1.750% of the
excess over $20,000.00
Over $35,000.00 but not
over $40,000.00 ............... $542.50 plus 3.500% of the
excess over $35,000.00
Over $40,000.00 but not
over $75,000.00 ............. $717.50 plus 5.525% of the
excess over $40,000.00
Over $75,000.00 ............. $2,651.25 plus 6.370% of the
excess over $75,000.00
c. For the purposes of this section, an individual who would be eligible to file as a head of household for federal income tax purposes but for the fact that such taxpayer is a nonresident alien, shall determine tax pursuant to subsection a. of this section.
(cf: P.L.2004, c.40, s.17)
2. This act shall take effect immediately and apply to taxable years beginning on or after January 1, 2010.
STATEMENT
This bill re-establishes 6.37 percent as the top gross income tax rate. Over the last decade, several income tax increases were targeted at the State's most productive individuals, families, and small-business owners, causing many within that same tax base to relocate their residence out-of-State.
The bill re-establishes the top gross income tax rate to 2004 levels as an initial step toward retaining the talents and contributions of some of the State's most productive citizens.
