Is it easy to do business in New Jersey? According to a recent report by the Tax Foundation, a research group that analyzes tax policies across the nation, the state has room for improvement.
Is it easy to do business in New Jersey? According to a recent report by the Tax Foundation, a research group that analyzes tax policies across the nation, the state has room for improvement.
The organization released its “2017 State Business Tax Climate Index,” which sought to determine how well each state structured its tax systems, comparing them with each other to identify states with the best and worst business environments.
How the Tax Foundation conducted its analysis
Instead of judging each state based on how much individuals, small businesses and corporations had to pay in taxes, the Tax Foundation analyzed the simplicity of each tax system, and whether those systems encouraged businesses to either leave or remain in one state or another.
The Foundation maintained that a state could have all major taxes (the corporate income tax, the individual income tax and the sales tax) but still offer an economic climate in which businesses could prosper. For instance, although Utah imposes all three taxes on its residents and businesses, the organization ranked the state as the 9th best state in the country.
Where New Jersey stood
Across the board, New Jersey ranked on the lower end of the nation. With respect to corporate taxes, New Jersey rang in at 42. The report also noted the state had the worst property tax rate in the U.S. Overall, the state’s tax code is quite complex, which may discourage current businesses from relocating to New Jersey in the near future.
While the Foundation ranked New Jersey as having the worst tax system in the nation, the organization conducted the report before the state made a serious change to its tax code by eliminating the estate tax. Lexology noted that Governor Chris Christie signed legislation that will repeal the estate tax for those who either die on or after January 1, 2018.
In addition, the new law will increase the estate tax exclusion amount from $675,000 to $2,000,000 for decedents who pass away on or after Jan. 1, 2017 but before January 1, 2018.
Do you have any questions? Would you like to discuss the matter further? If so, please contact me, Amy M. Van Fossen, at 201-806-3364.
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
