Bill Text: NJ A663 | 2014-2015 | Regular Session | Introduced
Bill Title: Lowers gross income tax rates by ten percent over three years for taxpayers that file jointly with $250,000 or less of taxable income and certain taxpayers that file individually with $125,000 or less of taxable income.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2014-01-16 - Introduced, Referred to Assembly Budget Committee [A663 Detail]
Download: New_Jersey-2014-A663-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblyman JOSEPH CRYAN
District 20 (Union)
Assemblyman JASON O'DONNELL
District 31 (Hudson)
Assemblyman PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
Lowers gross income tax rates by ten percent over three years for taxpayers that file jointly with $250,000 or less of taxable income and certain taxpayers that file individually with $125,000 or less of taxable income.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act lowering gross income tax rates by ten percent over three years for certain taxpayers, 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. Notwithstanding the taxable income tables and tax rates provided in N.J.S.54A:2-1 or any other provision of law to the contrary, for taxable years beginning on or after January 1, 2013, the amount of tax due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined pursuant to this section for a taxpayer otherwise required to determine the amount of tax due pursuant to subsection a. of N.J.S.54A:2-1 whose taxable income does not exceed $250,000 and for a taxpayer otherwise required to determine the amount of tax due pursuant to subsection b. of N.J.S.54A:2-1 whose taxable income does not exceed $125,000.
b. 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, 2013 but before January 1, 2014:
If the taxable income is: The tax is:
Not over $20,000.00 . . . . . . . 1.358% of taxable income
Over $20,000.00 but not
over $50,000.00 . . . . . . . $271.60 plus 1.6975% of the excess over $20,000.00
Over $50,000.00 but not
over $70,000.00 . . . . . . . . $780.85 plus 2.3765% of the excess over $50,000.00
Over $70,000.00 but not
over $80,000.00 . . . . . . . $1,256.15 plus 3.395% of the excess over $70,000.00
Over $80,000.00 but not
over $150,000.00 . . . . . . . $1,595.65 plus 5.35925% of the excess over $80,000.00
Over $150,000.00 but not
over $250,000.00 . . . . . . . $5,347.13 plus 6.1789% of the excess over $150,000.00
(2) for taxable years beginning on or after January 1, 2014 but before January 1, 2015:
If the taxable income is: The tax is:
Not over $20,000.00 . . . . . . . 1.316% of taxable income
Over $20,000.00 but not
over $50,000.00 . . . . . . . $263.20 plus 1.645% of the excess over $20,000.00
Over $50,000.00 but not
over $70,000.00 . . . . . . . . $756.70 plus 2.303% of the excess over $50,000.00
Over $70,000.00 but not
over $80,000.00 . . . . . . . $1,217.30 plus 3.29% of the excess over $70,000.00
Over $80,000.00 but not
over $150,000.00 . . . . . . . $1,546.30 plus 5.1935% of the excess over $80,000.00
Over $150,000.00 but not
over $250,000.00 . . . . . . . $5,181.75 plus 5.9878% of the excess over $150,000.00
(3) for taxable years beginning on or after January 1, 2015:
If the taxable income is: The tax is:
Not over $20,000.00 . . . . . . . 1.26% of taxable income
Over $20,000.00 but not
over $50,000.00 . . . . . . . $252.00 plus 1.575% of the excess over $20,000.00
Over $50,000.00 but not
over $70,000.00 . . . . . . . . $724.50 plus 2.205% of the excess over $50,000.00
Over $70,000.00 but not
over $80,000.00 . . . . . . . $1,165.50 plus 3.15% of the excess over $70,000.00
Over $80,000.00 but not
over $150,000.00 . . . . . . . $1,480.50 plus 4.9725% of the excess over $80,000.00
Over $150,000.00 but not
over $250,000.00 . . . . . . . $4,961.25 plus 5.733% of the excess over $150,000.00
c. 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, 2013 but before January 1, 2014:
If the taxable income is: The tax is:
Not over $20,000.00 . . . . . . . 1.358% of taxable income
Over $20,000.00 but not
over $35,000.00 . . . . . . . $271.60 plus 1.6975% of the excess over $20,000.00
Over $35,000.00 but not
over $40,000.00 . . . . . . . . $526.23 plus 3.395% of the excess over $35,000.00
Over $40,000.00 but not
over $75,000.00 . . . . . . . $695.98 plus 5.35925% of the excess over $40,000.00
Over $75,000.00 but not
over $125,000.00 . . . . . . . $2,571.71 plus 6.1789% of the excess over $75,000.00
(2) for taxable years beginning on or after January 1, 2014 but before January 1, 2015:
If the taxable income is: The tax is:
Not over $20,000.00 . . . . . . . 1.316% of taxable income
Over $20,000.00 but not
over $35,000.00 . . . . . . . $263.20 plus 1.645% of the excess over $20,000.00
Over $35,000.00 but not
over $40,000.00 . . . . . . . . $509.95 plus 3.29% of the excess over $35,000.00
Over $40,000.00 but not
over $75,000.00 . . . . . . . $674.45 plus 5.1935% of the excess over $40,000.00
Over $75,000.00 but not
over $125,000.00 . . . . . . . $2,492.18 plus 5.9878% of the excess over $75,000.00
(3) for taxable years beginning on or after January 1, 2015:
If the taxable income is: The tax is:
Not over $20,000.00 . . . . . . . 1.26% of taxable income
Over $20,000.00 but not
over $35,000.00 . . . . . . . $252.00 plus 1.575% of the excess over $20,000.00
Over $35,000.00 but not
over $40,000.00 . . . . . . . . $488.25 plus 3.15% of the excess over $35,000.00
Over $40,000.00 but not
over $75,000.00 . . . . . . . $645.75 plus 4.9725% of the excess over $40,000.00
Over $75,000.00 but not
over $125,000.00 . . . . . . . $2,386.13 plus 5.733% of the excess over $75,000.00
2. This act shall take effect immediately.
STATEMENT
The bill lowers gross income tax rates by ten percent over three years for joint filers with no more than $250,000 of taxable income and certain individual filers with no more than $125,000 of taxable income.
The bill reduces gross income tax rates over three years. The rate reductions are scheduled to occur at three percent for 2013, an additional three percent for 2014, and an additional four percent for 2015. After 2015, the bill maintains the total ten percent rate reduction for future taxable years.
The bill's rate decreases apply to two groups of taxpayers. The first group is comprised of taxpayers with $250,000 or less of annual taxable income that file as married individuals jointly, a head of household, or a surviving spouse. The second group is comprised of taxpayers with $125,000 or less of annual taxable income that file as married individuals separately, or unmarried individuals that are not filing as heads of households or surviving spouses, or estates and trusts.
