Corporate Tax Overhaul Gains Traction in New Jersey Senate

A bill overhauling New Jersey’s corporate business tax advanced through a key legislative committee Monday, but lawmakers removed a provision granting the director of the Division of Taxation wide discretion during audits of large corporations.

The Senate Budget and Appropriations Committee approved SB 3737, which modifies several features of the tax code affecting the way earnings are apportioned to the state. The bill also slashes the state’s authority to tax the earnings of foreign subsidiaries of multinational corporations, which would cause a revenue loss of $122.8 million per year according to a revenue estimate.

The bill won unanimous support ...