In the past, New York has aggressively taxed New Jersey residents who New York employers pay.
Taxpayers face higher tax rates, estimates indicate the cost to taxpayers could exceed $3 billion.
Now, a bill that will help New Jersey fight back against tax policies that are no longer relevant in a work-from-home world was signed into law.
State Sen. Jon Bramnick, who sponsored the bill, said the stacked deck has become more obvious with more people working from home and never setting foot in New York.
The bill (A4694/S3128) amends the existing law to adopt a similar aggressive tax treatment for nonresidents who work for New Jersey employers.
Additionally, the legislation provides tax credits for New Jersey residents who dispute aggressive tax policies imposed on them by other states.
If New Jerseyans take this issue up with another state’s tax authority and receive a tax refund for work they did in New Jersey, the state of New Jersey will provide a tax credit.
