New Jersey

New Jersey Supreme Court Requires Factual Record in Jersey City Payroll Tax Dispute

Posted July 21, 2022

by Evan M. Hamme and Taylor A.F. Wolff

Evan M. Hamme

Taylor A.F. Wolff

The New Jersey Supreme Court upheld a lower court decision that Jersey City’s payroll tax New-Jersey-Seal-300x300 was not a facial violation of the U.S. Constitution but remanded the matter to create a factual record to evaluate an as-applied challenge to the tax.

Enacted in 2018, the Jersey City payroll tax applies to employers with payroll exceeding $2,500 in any calendar quarter and is based on the employer’s nonresident employee payroll sourced to Jersey City. The payroll tax statute sources a nonresident employee’s payroll to Jersey City if the employee works in or is supervised from Jersey City. Continue Reading ›

New York Trial Court Finds State’s Attempt to Tax Storage Services Performed Entirely in New Jersey Arbitrary and Capricious

Posted August 24, 2020

by Zachary T. Atkins and Aruna Chittiappa

Zachary T. Atkins

Aruna Chittiappa

A New York trial court held that charges for storage services rendered in New Jersey were not subject to New York sales tax despite the fact that the property was originally picked up in New York. Vital Records, Inc. v. New York State Dep’t of Taxation & Finance, No. 900088-19 (N.Y. Sup. Ct. Albany Cty. Aug. 19, 2020). The case was not heard by the New York State Division of Tax Appeals, which is the typical venue for state tax disputes. Instead, the vendor brought an action against the New York State Department of Taxation and Finance (“Department”) and its executive deputy commissioner in a New York Supreme Court (trial court) seeking declaratory, injunctive, and other relief.

Navigating Local Labyrinths: Practitioners’ Guide to Local Taxes

Posted November 28, 2019

by Carley Roberts

Carley Roberts

In this article, Carley Roberts and co-authors discuss some of the more significant locally imposed taxes that could cause unexpected issues for businesses entering a new jurisdiction. They highlight Chicago Personal Property Lease Transaction Tax, San Francisco local taxes, New York City commercial rent tax, New Jersey local property tax, Jersey City payroll tax, New Jersey income tax credits, and Tennessee business tax.

To read the article, please click here.

Taxpayers Benefit from Courts Declining Agency Deference

Posted March 18, 2019

by Carley Roberts

Carley Roberts

(This article was originally published by Law360 on March 18, 2019.)

When challenging a state tax assessment outside the tax agency that issued the assessment, taxpayers face a variety of obstacles. One is the presumption of correctness that often attaches to a tax agency’s determination. Judicial deference to a tax agency’s interpretation of a tax statute or regulation makes the taxpayer’s task even more difficult.

“Federal Tax Changes Rocking the SALT Landscape”

Posted November 16, 2018

by Pillsbury SALT

Pillsbury SALT

On November 16, Carley Roberts presents “Federal Tax Changes Rocking the SALT Landscape” during Tax Executives Institute’s New Jersey All-Day Seminar.

Five Things to Know about New Jersey’s Taxation of Convertible Virtual Currency

Posted April 13, 2015

by Richard E. Nielsen, Michael Cataldo and Paul Casas

Richard E. Nielsen

Michael Cataldo

Paul Casas

On March 10, 2015, the New Jersey Division of Taxation issued Technical Advisory Memorandum TAM-2015-1, explaining its policy regarding convertible virtual currency.

New Jersey Tax Court Decides in Favor of Taxpayer in First Interest Addback Case

Posted October 7, 2010

by Jeffrey M. Vesely

Jeffrey M. Vesely

On August 31, 2010, the New Jersey Tax Court issued a memorandum decision in Beneficial New Jersey, Inc. v. Director, Division of Taxation,¹ concluding that the taxpayer satisfied one of the enumerated exceptions to the interest addback statute under N.J.S.A. 54:10A-4(k)(2)(I), and was thus entitled to its interest expense deductions.