I have set up an e-mail account to answer questions. For security reasons I will not open messages with attachments. Please do not include attachments in your correspondence because I would hate to delete messages without reading them.
The e-mail address is: email@example.com
I will also use this posting to answer the following questions:
Question: “Phasing out property taxes for farms and businesses. Need to have criteria on what is a working farm upgraded. Some rich property owners are using current law to designate their large tracts as farms to avoid paying the proper rate of taxes.”
Answer: It will not be necessary because, rich or poor, if a person is resident of New Jersey and pays income tax in New Jersey, he/she will not have property taxes on their primary residence. In the cases of non-residents and of people who live in N.J. but do not pay income taxes to N.J. (because they work outside the state) they will have property taxes to pay, however it will not matter either because there will no “farmland assessment” to move to (since farm land is not taxed.)
I am undecided as to what to do with vacation homes for N.J. taxpayers.
Question: “Regarding Corporation taxes (La Roche example you gave), please tie it to keeping jobs in NJ. We need to create incentive for corporations not to outsource jobs. If they can still outsource and benefit by paying lower or no taxes they will do so. Wall street investors are the main ones they try to please nowadays. Better to benefit small and medium companies that will maintain jobs here in NJ than the larger ones who will outsource unless you can get them to agree to a jobs clause.”
Answer: The question, I presume, is what degree of presence must a large company (a C corporation) have in N.J. to qualify for the preferred status and it has two answers: One has to do with the corporate taxes the company itself pays and answer #2 has to do with the tax its dividend pays.
Answer 1: The corporate tax should still be zero* because if they just have a shack with two guys to make believe they have a presence in N.J. they will generate very little taxable profit anyway so why bother creating a threshold for that reason.
Answer 2: That is still on the drawing board. The fact is I haven’t had the time to really figure out the best approach. At what point the dividend a C corporation pays to its shareholders achieves the preferred rate? I am not sure. We could even leave it floating, at the pleasure of the N.J. Treasurer with some flexible guidelines.
Note: Small and medium companies (S corporations) pay no corporate taxes. It is their dividend that is taxed and it would get the preferred rate or zero if they operate in New Jersey.
* -see comments.