NJ exit taxes are one of the most popular taxes in the country, costing businesses more than $60 billion annually, according to the Tax Foundation.
But there are many other taxes that are on the ballot in November, including a tax on the state’s high-tech sector.
Below, we’ll take a look at what these taxes could look like and what you need for your plan.
What are NJ exit costs?
The exit tax is the largest tax in the state, costing companies in the industry between $100 million and $200 million annually.
But the state isn’t required to collect any taxes on the industry, leaving it up to individual companies to decide how much they should pay in taxes.
If the exit tax rate is 50 percent or more, the tax could result in a large reduction in revenue.
And if the tax rate falls to 30 percent, businesses that pay the exit taxes could face an estimated $30 billion to $50 billion in revenue over the next 20 years.
What’s in the exit bill?
A bill to impose a $20,000 annual tax on all businesses operating in the State of New Jersey is set to be introduced by New Jersey Governor Chris Christie and will be debated on Nov. 7.
The bill will likely include a number of other taxes, including an income tax on companies that operate in the energy industry, a payroll tax, a sales tax, an excise tax, and a tax that will help fund public schools.
How much does it cost?
There is no specific dollar amount in the bill, but the Tax Institute estimates the total bill could be $20.4 billion over 20 years, depending on how much tax revenue the industry generates.
The Tax Foundation says that’s more than twice the size of the state government’s current budget.
What are the other tax alternatives?
There are several options to help companies pay the exits tax.
In addition to the current exit tax and payroll tax , companies can also pay a tax called a sales and excise tax.
The sales tax would be 0 percent and would be levied on any goods or services that are sold in New Jersey.
The excise tax would tax the sale of a certain type of alcoholic beverage, a product or service used to make a certain amount of money, and on other goods and services.
The New Jersey Tax Commission is expected to vote on whether to levy the excise tax in November.
What about other tax options?
There could also be an alternative to the tax on high-growth businesses that would also apply to companies that have closed down.
According to the state tax commission, the alternative to taxing businesses that close is a sales-tax credit for new businesses, which would amount to an additional $1,500 per employee.
But that option would be limited to businesses that are more than 50 percent owned by the same parent company.
The Tax Foundation estimated that if a similar option was enacted, the state would end up paying about $1.6 billion a year to businesses in the high-spending industries, including companies with gross sales of $1 billion or more.
What happens next?
If lawmakers don’t pass the exit-tax bill by Nov. 15, the next step is for the governor to submit a bill to the New Jersey legislature that would provide additional revenue.
The legislation would then be presented to Christie for a vote.
What if the exit plan fails?
The Tax Institute’s Michael R. Siegel says that if the legislature passes the exit rate bill, it could lead to a tax hike of $30 to $40 billion over the course of 20 years for businesses that have already closed their doors.
If this happens, the Tax Commission would then have to decide whether to issue an interim tax or to implement the full exit tax.
Should the tax be delayed?
The governor’s plan has the support of New York City Mayor Bill de Blasio, who told The New York Times in September that he would vote to delay the tax if it failed to pass.
The tax has not passed the New York State Senate yet, but if it does, de Blasio says he’ll be “looking at every opportunity” to pass it.
What else is on the November ballot?
As with most elections, there are several ballot initiatives on the Nov. 8 ballot, including one that would allow New Jersey residents to pay the state exit tax to vote in the upcoming election.