A bill was signed into law on Friday that will combat New York State’s unfair taxation of New Jersey residents. New York imposes high tax rates on Garden State residents who work for New York employers, and although they receive a credit when they file as New Jersey residents, New York still keeps the revenue. This could cost taxpayers over $3 billion. With more people working from home and never setting foot in New York, the unfairness of this treatment has become even more apparent.
The bill, A-4694/S-3128, amends existing law to adopt a similarly aggressive tax treatment for nonresidents who work for New Jersey employers. Additionally, a pilot program will be established by the New Jersey Economic Development Authority (EDA) to incentivize New York businesses to assign New Jersey resident employees to locations within the state.
Companies that receive grants under this program must commit to providing bonuses or increased compensation to their employees who relocate to New Jersey offices. The grants will not exceed $500,000, and a total of $35 million was made available for the program’s funding.
