Assemblyman JON M. BRAMNICK
District 21 (Morris, Somerset and Union)
Ends COVID-related extension of time for statute of limitations on tax due and interest on overpayment of tax paid.
CURRENT VERSION OF TEXT
An Act concerning the statute of limitations and interest on tax during the COVID-19 pandemic, amending P.L.2020, c.19.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2020, c.19 is amended to read as follows:
1. a. A taxpayer required to make and file an annual or quarterly return or report pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., or the “Corporation Business Tax Act (1945),” P.L.1945, c.162 (C.54:10A-1 et seq.), on an original due date of April 15, 2020, shall be granted by the Director of the Division of Taxation in the Department of the Treasury an automatic extension of time to file those returns or reports and to pay the tax due until July 15, 2020.
b. The provisions involving payment of interest upon any overpayment of tax pursuant to N.J.S.54A:9-7 and section 7 of P.L.1992, c.175 (C.54:49-15.1), are hereby extended for six months after the conclusion of the [state of] public health emergency declared by the Governor pursuant to Executive Order No. 103 of 2020, or any extension thereof, or within six months after the return is filed, whichever is later.
c. A taxpayer granted an automatic extension pursuant to subsection a. of this section shall not be subject to penalties or interest if the return or report is filed and the tax due is paid on or before July 15, 2020, or by such other date that may be permitted by the director in accordance with regulations in effect on the effective date of P.L.2020, c.19.
d. Notwithstanding any provision of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director may adopt immediately upon filing with the Office of Administrative Law such rules and regulations as the director determines to be necessary and appropriate to effectuate the purposes of this section.
(cf: P.L.2020, c.19, s.1)
2. Section 2 of P.L.2020, c.19 is amended to read as follows:
2. The statute of limitations to assess any tax pursuant to N.J.S.54A:9-4 and R.S.54:49-6 is hereby extended for 90 days after the conclusion of the [state of] public health emergency declared by the Governor pursuant to Executive Order No. 103 of 2020, or any extension thereof.
(cf: P.L.2020, c.19, s.2)
3. (New section) Any assessment of tax that was allowed as a result of the extension of the statute of limitations in section 2 of P.L.2020, c.19, but that was assessed after the 90th day following the conclusion of the public health emergency declared by the Governor pursuant to Executive Order No. 103 of 2020, shall be voided. The Director of the Division of Taxation in the Department of the Treasury shall return any amounts collected from a taxpayer as a result of such assessment.
4. This act shall take effect immediately and shall apply retroactively to the effective date of P.L.2020, c.19.
This bill ends the extension of time for the statute of limitations on tax due that was enacted in response to the COVID-19 pandemic. The bill also ends the extension for the provisions regarding the State’s payment of interest on a taxpayer’s overpayment of tax.
Both of these extension’s end dates are currently tied by statute to the end of the state of emergency declared by the Governor in Executive Order No. 103. Separately, in Executive Order No. 170, the Governor extended the time for taxpayers to file a claim for a refund on taxes paid. The end date for that extension is tied to the end of the public health emergency.
On June 4, 2021, the Governor terminated the public health emergency with Executive Order No. 244, but did not terminate the state of emergency. As a result, the extension of time for the statute of limitations and payment of interest still do not have an end date, while the extension of time for refunds does have an end date.
This bill changes the end dates for the extension of time for the statute of limitations and payment of interest so that the extensions are tied to the end of the public health emergency, as is the case with the extension for refunds.