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Stop the state from raiding the pockets of the deceased & bereaved!

I am sure most citizens of NJ are not aware that New Jersey has an Inheritance Transfer Tax in addition to an Estate Tax. The threshold for this Transfer Tax is $500. If you are a surviving spouse/civil union partner, surviving domestic partner, children, stepchildren, parents, grandparents or grandchildren you are exempt from this tax. However, if you are not, (brother, sister, niece, nephew, caregiver, etc) you will be subject to a 15% or more tax that has to be paid 8 months after the death of the decedent. If you make any payments after the 8 months, you are subject to a 10% interest charge.

In May of 2012, a bill (S1996) was submitted and referred to the Senate Budget Committee. It has languished there since and no action is being taken. This bill was a bipartisan bill sponsored by Sen. Van Drew (D) and Sen. Oroho (R) and Co-sponsored by Sen. Bucco (R) and Sen. Beck (R). In the Assembly, a similar bipartisan bill was introduced on 6/18/12 by Rep. Dancer (R), Rep. O’Scanlon, Jr. (R), Rep. Giblin (D) and Rep. McHose (R). This bill was also referred to the Assembly Appropriations Committee and since then, no action has been taken. These bills eliminate the Inheritance Transfer Tax and increases the threshold on the Estate tax to Federal Standards.

If anyone thinks that this tax is just, you are agreeing with a tax that is discrimination and a double tax. No State should be able to tax any individual based on what their relationship is to anyone. Also, to have 2 taxes on the same assets is double taxation. While the threshold is $675,000 on the Estate tax, having 2 taxes on the same assets is double taxation. This is a tax on those that have no choice, did not decide to receive anything yet the state wants them to be penalized for something they had no choice in. They certainly did not want to lose a loved one. After going through this terrible life event, the state seeks to hammer those bereaved relatives.

These 2 Bills are bipartisan bills yet the majority of Democrats do not want to pass this bill. They want to keep a tax that is an assault on the assets that your loved one worked so hard to create (an already paid taxes on) and leave it to their loved one so they could maybe have a better life.

Keep in mind that NJ already has the highest tax rate in the country and also the highest exodus rate of all 50 states. Our elected officials don’t seem to understand that the high taxes are the main reason for people leaving this state. This has a double edge effect as when people leave a state, the state has less of a tax base. It also creates abandoned homes which create bad neighborhoods and reduce the ability of the cities to collect property taxes. Their response is to raise taxes to make up for the lost revenue instead of cutting taxes to keep the people and business here, which of course reduces unemployment.

It is time for us to take back our state. Call your legislator and tell them that those that do not reduce taxes and eliminate discriminatory taxes do not deserve your vote.

Please support the passage of S1996 and A3113

CALL YOUR LEGISLATOR NOW AND
SIGN A PETITION BY VISITING:
www.change.org/petitions/s1996-and-a3113

I thank you in advance for your support.

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