To clarify aspects of the Corporation Business Tax Act (CBT), Assemblywomen Eliana Pintor Marin (D- Essex), Shavonda Sumter (D- Bergen, Passaic), and Serena DiMaso (R- Monmouth) sponsor legislation to better facilitate the administration and compliance of the CBT. On Thursday, the legislation passed the full Assembly 72-0 and the Senate 34-0.
The bill (A-4809) would improve upon the reforms enacted in 2018 to the CBT. As a product of negotiations between the Division of Taxation and industry taxpayers, this bill would enable the Division of Taxation to be more efficient in managing the CBT, while also simplifying its terms thereby encouraging increased compliance from businesses and organizations.
The bill is one in a series of bills based upon recommendations from the coronavirus recovery Economic Advisory Council, established by Assembly Speaker Craig Coughlin, whose mission is to provide input and ideas to the State Legislature on how to move forward on COVID-19 recovery.
Assemblywomen Pintor Marin, Sumter, and DiMaso issued the following joint statement after passage of the legislation:
“Since the CBT was enacted in 2018, the Legislature has been working closely with the Division of Taxation, as well as business owners and leaders, to evaluate its effectiveness and determine areas where improvements could be made.
“This bill makes a number of changes to simplify and streamline various aspects, which in turn will make it easier for businesses to understand and comply with the CBT. The added clarity will also help the Division to better monitor and enforce the provisions of the law.
“This bill is an excellent example of how positive collaboration helps us to constantly grow and improve the public policy actions we enact as a Legislature. We look forward to its quick implementation so that businesses throughout the state can begin to benefit.”