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New Jersey Gas
Tax Hike |
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Businesses in New Jersey will have to pay more for fuel
under a
new law that will go into effect
November 1, 2016 or two weeks after it is signed by the
governor. But, they will also benefit from a lower sales tax
rate and a reduction in the estate tax.
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That rate for regular gas will be raised by $0.23 per gallon
to $0.37 per gallon.
The rate for diesel fuel will be raised by $0.04 per
gallon next year.
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But it will be offset somewhat by a reduction in the sales
tax from 7 percent to 6.875 in 2017 and 6.625 percent in
2018.
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This new higher rate will impact all businesses and not just
transportation businesses.
The higher cost for transporting products will be
passed on to retailers and eventually to the customer.
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The new law also reduced the estate tax which will have a
positive impact on entrepreneurs who want to pass on their
businesses to the next generation. It Phases out the
estate tax over four years, first by replacing the current
$675,000 threshold with a $1,000,000 exclusion, and then
increasing the exclusion amount until the tax is eliminated
as follows:
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For the transfer of the estate of each resident decedent
dying on or after January 1, 2017, but before January 1,
2018, the exclusion amount is $1,000,000.
For the
transfer of the estae of each resident decedent dying on or
after January 1, 2018, but before January 1, 2019, the
exclusion amount is $2,000,000.
For the transfer of
the estate of each resident decedent dying on or after
January 1, 2019, but before January 1, 2020, the exclusion
amount is $3,000,000. |
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For the transfer of the estate of each resident decedent
dying on or after January 1, 2020, there shall be no tax
imposed. |
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Another good benefit from the law is the increased exclusion
of retirement pay from taxes. Generally under current
law, taxpayers with $100,000 or less of annual income, who
are at least 62 years old, may claim a pension and
retirement income exclusion of up to $20,000 for joint
filers, $15,000 for individuals, and $10,000 for married but
filing separately. |
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The bill
increases the personal income tax's pension and retirement
income exclusion to $100,000 for joint filers, $75,000 for
individuals, and $50,000 for married but filing separately.
The bill phases in the five-fold exclusion increase over
four years.
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Sources:
A11 Changes in
Certain State Taxes
Governor
Christie’s Home page
By Bill
Williams
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