New Jersey Corporation Business Tax Surcharge Retroactively Increased Back to 2.5 Percent
New Jersey imposes a surtax on its Corporation Business Tax when taxable income is over $1 million. This surtax, instituted in 2018, was originally 2.5 percent for 2018 and 2019 and 1.5 percent for 2020 and 2021. The New Jersey governor recently signed into law an extension of the 2.5 percent rate for 2020 as well as for 2021 to 2023. Due to this, the 1.5 percent surtax, which was expected for 2020, is now 2.5 percent. This change takes effect immediately and applies retroactively to periods beginning on or after January 1, 2020.
The new law requires any penalties or interest incurred by a taxpayer due to this retroactive increase in the surtax to be waived.
If you wish to discuss any of the matters in this update in more detail, please contact Chuck Marston, Rich Pacella, or Danelle Stewart at cmarston@srsnodgrass.com, rpacella@srsnodgrass.com, or dstewart@srsnodgrass.com, or 724-934-0344.
Posted 11/19/20
