NEW JERSEY - Stephen Natoli has owned his deli and grocery store since he was just 19 years old In 1977.
And like many independently owned shops, any changes can affect his bottom line. Especially 2017's federal tax law overhaul that limits state and local tax deductions.
But now, lawmakers are moving to pass a so-called “work-around” for the tax law.
“What’s occurring now is that they’re not being able to deduct that state income tax,” said Assemblyman Daniel Benson, who helped write the legislation. “So what we’re doing under Bill A4807, if signed into law, we’ll allow businesses to pay an alternative business tax there and get a credit on their income taxes for making those payments.”
The new rules would affect roughly 300,000 small businesses and LLCs in New Jersey. Lawmakers say the ultimate goal is to change the tax laws back to the way they were in the 1990s.
The bill has passed both the state assembly and senate and is now headed to Governor Phil Murphy’s desk for a signature.