MLLIONAIRE’S TAX PART-TWO?

MLLIONAIRE’S TAX PART-TWO?


Last year, Governor Chris Christie vetoed the Democrat-sponsored “millionaire’s tax” before the ink on the bill even had a chance to dry. An override attempt failed. Yesterday as Christie delivered his Fiscal year 2012 State Budget Address, State Senator Shirley Turner quietly introduced a new millionaire’s tax bill.

Turner’s measure would increase the rate of the New Jersey gross income tax for taxpayers with taxable incomes exceeding $1,000,000 in taxable years beginning on or after January 1, 2011. The bill provides for adjusted income taxation at the following bracket at the following rate: over $1,000,000 is adjusted from 8.97% to 10.75%. The legislation seeks to permanently impose the tax rate at this $1,000,000 income bracket that was temporarily imposed during taxable year 2009.

Under Turner’s bill, the gross income tax revenue collected from the "millionaires'" tax increase would be dedicated to annual real property tax relief to be provided directly to real property taxpayers. All income tax revenue collected from the increase in the gross income tax rate imposed on taxable income in excess of $1,000,000 will be deposited in a subaccount in the constitutionally established Property Tax Relief Fund. All revenue derived annually from the tax rate increase is pledged to be used annually for direct real property taxpayer relief. This subaccount, to be known as the Direct Taxpayer Property Tax Relief Fund, is the revenue and budget account that will ensure that direct tax relief continues to be funded from this source.

Turner is the sole sponsor of the new millionaire’s tax bill and there is not an Assembly version of the legislation yet.

Christie has vowed not to raise any taxes in this year’s budget. Watch below what happened last year when the first millionaire’s tax bill was passed