[ETS/PARC List] NJ Tax Changes Effective January 1, 2017

[Victor Pennetta]

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NJ Estate Tax -   As of January 1, 2017 the exemption for estates increases from $675,000 to $2 million per decedent. There is no NJ Estate Tax after January 1, 2018. Click here<http://r20.rs6.net/tn.jsp?f=001h3hWpMe4QS9i7cwh2UvWW61pRP7t9b-83qkH2Ue5ML7-kNowEbyuON6RKj_G7W72Ob6KU3HnMQQP4hs19QeqC0gr5jD_13w225js-HP3hshQ3T_q14p1Xna0H8dThtz26i0Px1WYCcljtTZXoCWQUom7apwLeyfk5zFTwwi-oiPJy-cMi7580vYKUnK20NUnTIefjVV9k2top55JwRuTOA==&c=I2YRRkgFln3Fxt_cNbJ7sS2YqhQkC__Bh0JPZaBX7L2fv0-1eRybeQ==&ch=Jjec68uW2nnYGIoZ6g5RQ-FqLAgdwe_yr6TN3Yb_5xfITbrGkVRZQw==> for more from the NJ Division of Taxation on this issue.

NJ Sales Tax - As of January 1, 2017 the NJ Sales Tax is reduced from 7% to 6.875%. The tax rate will decrease to 6.625% on January 1, 2018. Click here<http://r20.rs6.net/tn.jsp?f=001h3hWpMe4QS9i7cwh2UvWW61pRP7t9b-83qkH2Ue5ML7-kNowEbyuOHp9WosTUI0Z9frG9Zwu-J14lvBhQ9a_6MVQPekPZ-w3BDocwSCfLMxxahm557evQ3KeML5HOslOtKwS5GJqPcLi5QdJq_jQ-x90Yz8BHBX01jFxypKhJf3Rpit-WtTeXrA5nrWmTEswhGaHBZyy29nb-hCtZd-h0Q==&c=I2YRRkgFln3Fxt_cNbJ7sS2YqhQkC__Bh0JPZaBX7L2fv0-1eRybeQ==&ch=Jjec68uW2nnYGIoZ6g5RQ-FqLAgdwe_yr6TN3Yb_5xfITbrGkVRZQw==> for more information from the Division of Taxation on this issue.

NJ Veteran's Income Exclusion -  As of January 1, 2017 honorably discharged veterans (active or reserve) are eligible for a $3,000 gross income tax exemption. It is estimated that this will reduce the tax liability of the filer by approximately $105.00.

NJ Pension Income Exemption -  As of January 1, 2017, and continuing for the next four years, the state is phasing in an increase in the amount of pension income excluded from the NJ Gross Income Tax from $20,000 (joint)/$15,000 (individual) to $100,000 (joint)/$75,000 (individual).
 There is also a change to certain Urban Enterprise Zones. As of January 1, 2017 five towns will lose their UEZ designation and the full NJ Sales Tax of 6.875% will be applicable.

The towns losing their UEZ designation are:

  *   Bridgeton
  *   Camden
  *   Newark
  *   Plainfield
  *   Trenton
Here<http://r20.rs6.net/tn.jsp?f=001h3hWpMe4QS9i7cwh2UvWW61pRP7t9b-83qkH2Ue5ML7-kNowEbyuOCN9rekfsUN9D9xhz05IWAj9lv5_3VcKdx3YT0l40--T4QVpFkpIKBH8xJRIXbWlhqHfzhRDH_-aFqpv5Mah_d9zfH37_MKk0foh_mo2F7oy49qwzxQ5Zvw8y8LqIiUhf4yKkwDhp-GmTqIhkx1ubo-gA4iqVWEjUQ==&c=I2YRRkgFln3Fxt_cNbJ7sS2YqhQkC__Bh0JPZaBX7L2fv0-1eRybeQ==&ch=Jjec68uW2nnYGIoZ6g5RQ-FqLAgdwe_yr6TN3Yb_5xfITbrGkVRZQw==> is more from the NJ Division of Taxation on the UEZ matter.

Earlier this year legislation that extended the UEZs for a period of ten years was vetoed by Governor Christie. A revised bill extending the UEZs for two years has passed the Assembly and is scheduled to be voted on in the Senate Monday December 19, 2016.  FMA will keep you apprised should there be any changes but as of now the UEZs in the five above towns will cease at 11:59pm on Saturday December 31, 2016.

73,
Victor, K2NBC