Assembly Bill Extending CBT & GIT Deadlines Approved by Assembly, Poised to be Signed Soon by the Governor

Bi-Partisan Sponsored Legislation

(TRENTON)-  Assembly members Eliana Pintor Marin, Hal Wirths and John Burzichelli have sponsored legislation to provide further relief to taxpayers during the pandemic. The bill was approved 80-0 and now heads to the Governor for signature.

The legislation (A-3918), dubbed the ‘COVID-19 Fiscal Mitigation Act,’ clarifies the filing and payment deadline for CBT and GIT, modifying the duration of State Fiscal Years 2020 and 2021, and requires certain updates and presentation for State Fiscal Years 2020 and 2021.

The bill specifically takes three actions:

• delays the filing and payment deadlines for the gross income tax and corporate business tax from April 15, 2020 to July 15, 2020;
• extends the State fiscal year by three months and would end on September 30, 2020. The subsequent State fiscal year will begin October 1, 2020 and end on June 30, 2021; and
• requires the State Treasurer to submit to the Legislature by May 15, 2020 a report providing an update on State revenue collections and a revised forecast of revenue projections for the remainder of the current fiscal year. The report shall provide an assessment of current economic conditions and the impact of the economy on the budget.

The Assembly Democratic sponsors Pintor Marin and Burzichelli provided the following statements on the bill:

“Under the current conditions of this pandemic, we have to take everything into account when calculating the fiscal spending plan for the next year. After we get through this, the state will need more time assessing the impact of COVID-19 on our budget and wait for revenue numbers to come in, which will take to about August,” said Pintor Marin (D-Essex), who chairs the Assembly Budget Committee. “The stark reality is that all New Jerseyans have been affected economically in some way during this time. We believe New Jersey tax filers need more time to file and pay their taxes. This bill would ensure that taxpayers only have one deadline for filing and paying both federal and state to avoid confusion for residents.”

“We are facing unprecedented and extremely challenging times ahead,” said Burzichelli (D-Gloucester, Cumberland and Salem), who serves as vice-chair of the Assembly Budget Committee. “Only after we are through the tough parts of this pandemic will we have a better understanding of where we are financially as a state and also have the accurate numbers for the FY2021 budget. This legislation provides taxpayers and the state the necessary time to deal with the current situation and appropriately plan for a budget response.”

Assembly Republican Hal Wirths also shared the following statement:

“New Jersey was already in a poor fiscal position for an economic downturn, and the future becomes more uncertain every day,” said Wirths (R-Sussex), a member of the Assembly Budget Committee. “It would be irresponsible to draft a budget, which is based purely on expected revenue, when nobody knows what to expect. Extending the fiscal year and pushing back a new budget is the prudent thing to do.”