New Jersey Tax Laws
In the United States, each state funds its activities, such as law enforcement and providing benefits to those in need, by raising taxes. Taxes are raised on the sales of goods and services, on income, and even on the sale and transfer of property. The state of New Jersey raises taxes on a number of economic activities, and the way in which these taxes are raised and administered is set down in state laws. In New Jersey, the New Jersey Department of the Treasury manages and administers the state's tax laws.
Other People Are Reading
-
Income Tax
-
Personal income tax in New Jersey is covered by statute law 54:A:1-1. According to this law, all New Jersey residents must pay tax to the state based on income from all sources. New Jersey residents must even pay tax to the state of New Jersey, even if the income is earned outside the state. This law makes employers responsible for withholding state taxes from the wages of their employees. Wages are defined under this law as being anything regarded as wages by the federal government. In effect, if the federal government changes its own definition of what constitutes wages for tax purposes, this automatically applies to the definition of wages in New Jersey, so that the state does not have to pass additional laws.
Corporation Tax
-
Law 54:10A-1 defines which businesses located in New Jersey -- and those from outside the state, including foreign corporations doing business in New Jersey -- that are subject to New Jersey corporation tax. According to this law, all businesses having an office in the state, conducting business in the state or owning capital or property in the state are subject to New Jersey corporation tax. Statute law 54:10E-1 defines corporate income as being net income that comes from New Jersey sources, including income from property and payment for services and trade conducted in New Jersey.
-
Sales Tax
-
Sales and use tax in New Jersey is governed by statute law 54:32B-1. Income from the rent of personal property, hotel rooms, retail sails and the sale of drinks and food in restaurants are all subject to New Jersey sales tax. The law does exempt certain transactions from sales tax. The sale of food items for home use is not subject to sales tax. Sales of clothing and footwear are not taxed, nor are sales of fuel, gas, water, steam and electricity.
Property Tax
-
Property tax in New Jersey is assessed on the value of the property. The tax, which is governed by New Jersey statute 54:4-1, applies to all real estate and includes the assets of telephone and telegraph companies. Municipalities within the state make their own assessments of property values for tax purposes. Local property taxes are used to fund county, municipal and school district expenditures and are not used by the state government to fund state-wide spending.
-
