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Division of Taxation

2019 Tax Law Summaries

Treatment of Out-of–State Businesses and Employees During a Declared Disaster or Emergency

P.L. 2019, Chapter 7 – This law, which was enacted and became effective on January 31, 2019, excludes certain out-of-State businesses and employees from certain taxes, fees, and business registration requirements when temporarily working in New Jersey during a declared disaster or emergency.

An out-of-State business that restores critical infrastructure during a declared disaster is not required to register, file, report and pay State or local taxes or fees that require the filing of a New Jersey tax return. Out-of-State employees, or their employers, are not required to report and pay State or local income taxes. However, when out-of-State businesses or employees purchase goods and services used in New Jersey, they must pay all associated taxes and fees. Examples of these taxes and fees are fuel taxes, Sales and Use Tax, occupancy taxes and fees, and motor vehicle rental taxes and fees.

An out-of-State business or employee that remains in New Jersey after the disaster period ends is subject to the State’s normal standards for establishing physical presence and doing business in this State. The business or employee will be responsible for any State or local tax liabilities or requirements to do business in this State.

Amends New Jersey Angel Investor Tax Credit Act

P.L. 2019, Chapter 145 -  This law increases the amount of Corporation Business Tax and Gross Income Tax credits available to investors in a New Jersey emerging technology business or emerging technology business holding company under the “New Jersey Angel Investor Tax Credit Act.” This law took effect June 30, 2019 and applies to qualified investments made during privilege periods and tax years beginning on and after January 1, 2020.

Veterans Gross Income Tax Deduction Personal Exemption Increase

P.L. 2019, Chapter 146 - This law increases the Gross Income Tax deduction available to Veterans from $3,000 to $6,000 and is in addition to the $1,000 personal exemption to which each taxpayer is entitled, and any additional exemption for which the veteran is eligible. The law became effective June 30, 2019 and applies to tax years beginning on and after January 1, 2019.

Amends Tobacco and Vapor Products Tax Act

P.L. 2019, Chapter 147- This law, known as the “Tobacco and Vapor Products Tax Act,” imposes licensing requirements on vapor business, limits the sale of container e-liquid to vapor businesses, and imposes a 10% tax on the sale of container e-liquid. This law will take effect November 1, 2019.

Assistance with Business Reinstatements

P.L. 2019, Chapter 149- This law assists inactive or revoked status business entities achieve reinstatement, or execute a streamlined termination, by filing a single application and supporting documentation along with a $500 administrative fee. This is for a temporary period not to exceed 180 days and to end no later than June 15, 2020. The law also eliminates the reinstatement fee for late filing, establishes a grace period for waiver of the tax clearance requirement for recently revoked entities, and establishes a uniform tax clearance procedure for all for-profit entities following the grace period. In addition, the annual report fee for for-profit entities has been increased by $25 to $75 and the fee for non-profit entities has been increased by $5 to $30. This law became effective June 30, 2019.

Eligibility Information for State Tax Relief Programs on Property Tax Bills

P.L. 2019, Chapter 186- This law requires property tax bills to contain eligibility information on State tax relief programs. This law became effective on July 19, 2019 and is applicable to tax bills printed 60 days after the effective date, July 19, 2019.

Veteran’s Property Tax Deduction Eligibility Extended

P.L. 2019, Chapter 203 – This law extends the veteran’s property tax deduction to residents of continuing care retirement communities. This law became August 5, 2019; however it will remain inoperative until approved by voters via constitutional amendment.

Exclusion of Transient Accommodation Taxes and Fees

P.L. 2019, Chapter 235- This law excludes any accommodation not obtained through a transient space marketplace from transient accommodation taxes and fees, unless it is a professionally managed unit. A transient space marketplace is defined as the payment for the accommodation is made through a means provided by the marketplace or travel agency, either directly or indirectly, regardless of which person or entity receives the payment, and where the contracting for the accommodation is made through the marketplace or travel agency. This law became effective on August 9, 2019.

Meals on Wheels in New Jersey Fund

P.L. 2019, Chapter 295 - This law allows for voluntary contributions by taxpayers on Gross Income Tax returns to support a special fund known as the “Meals on Wheels in New Jersey Fund.” Effective immediately, this law is applicable for tax years beginning on or after January 1, 2021.

Qualified Low-Income Housing Projects Property Tax Exemption

P.L. 2019, Chapter 297 - This law allows a municipality to extend long term property tax exemptions to qualified low-income housing projects. A project that receives a New Jersey or federal rent subsidy from its inception may retain an existing property tax exemption if the municipality agrees. This law became effective on January 13, 2020.

Prohibits Discounts and Promotion on Tobacco and Vapor Products

P.L. 2019, Chapter 396 - This law prohibits the use of coupons, price rebates, and price reduction promotions in the sale of tobacco and vapor products. This law is effective March 1, 2020.

Extension of the Extends the Veterans’ Property Tax Exemption

P.L. 2019, Chapter 413 - This law extends the veterans’ property tax exemption for 100% service-disabled veterans and the $250 veterans’ property tax deduction to New Jersey veterans who were honorably discharged or released under honorable circumstances, but did not serve in a time of war. This law became effective January 21, 2020. However, the law remains inoperative until voters approve a constitutional amendment authorizing the aforementioned law.

Tax Credit for Apprenticeship Programs

P.L. 2019, Chapter 417 - This law provides a business or group of businesses with a $5,000 Corporation Business Tax or Gross Income Tax credit for associated start-up costs regarding apprenticeship programs registered with the United States Department of Labor, starting on or after July 1, 2019. This law became effective January 21, 2020. 

Prohibits the Sale, Offer for Sale, and Distribution of Electronic Smoking Devices and Related Products

P.L. 2019, Chapter 425 - This law prohibits the sale, offer for sale, and distribution of electronic smoking devices and related products that have a characterizing flavor. This law is effective April 21, 2020.

Sales and Use Tax Exemption on Qualified Manufacturing Facilities Materials

P.L. 2019, Chapter 437 - This law exempts from Sales and Use Tax the sale or use of energy utility service to qualified recovered materials manufacturing facilities. Effective January 21, 2020, this law is applicable to Sale and Use Tax receipts made on or after January 21, 2020.

“Lindsay’s Law”

P.L. 2019, Chapter 444 - This law, known as “Lindsay’s Law,” allows for up to a $10,000.00 tax deduction from Gross Income Tax for unreimbursed expenses incurred due to an individual’s, or their dependent’s, organ or bone marrow donation. This law is effective May 21, 2020.

Property Tax Exemption Furloughed Federal Employees

P.L. 2019, Chapter 491 - This law defers property tax payments for a taxpayer who is a federal employee furloughed or working without pay due to a federal budget impasse. Interest charges will be waived for delinquent property taxes. This law is retroactive to December 22, 2018.

Film and Digital Media Tax Credits

P.L. 2019, Chapter 506 -  This law extends the availability period for tax credits for certain expenses incurred for production of certain film and digital media content, raises annual cap related to film production, and provides for annual administration of film tax credits. This law became effective January 21, 2020.

Last Updated: Tuesday, 05/31/22