Assembly Commerce and Economic Development Committee Statement to Assembly, No. 4809 (October 21, 2020)

Summary

A statement of the Assembly Commerce and Economic Development Committee to the Assembly on Assembly Bill No. 4809 with committee amendments, of the State of New Jersey, dated October 21, 2020. The committee reports the bill favorably and with committee amendments. The bill makes corrections and revisions to clarify and simplify changes enacted as part of P.L.2018, c.48 and P.L.2018, c.131, which addressed unitary combined returns on a water's-edge basis, net operating losses, the research and development credit and the dividend received exclusion. The committee amended the bill to revise the dates on which certain provisions first apply, correct typographical errors, and provide that no penalties or interest shall accrue for underpayment of tax due to the retroactivity of parts of the bill.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT
                COMMITTEE

                           STATEMENT TO

                      ASSEMBLY, No. 4809
                          with committee amendments



       STATE OF NEW JERSEY
                          DATED: OCTOBER 21, 2020

          The Assembly Commerce and Economic Development Committee
      reports favorably and with committee amendments Assembly Bill No.
      4809.
          The bill makes numerous corrections and revisions to clarify and
      simplify various aspects of the changes that were enacted as part of
      P.L.2018, c.48 and P.L.2018, c.131. Those laws, among other things,
      mandated mandatory unitary combined returns on a water’s-edge basis
      if no election for an affiliated group basis filing or world-wide group
      basis filing had been made. The laws also changed the application of
      the net operating losses from pre-allocation (called pre-apportionment
      in other states) to post-allocation (called post-apportionment in other
      states), updated the research and development credit, and amended the
      dividend received exclusion.

      COMMITTEE AMENDMENTS:
          The committee amended the bill to:
          1) revise the dates on which certain provisions of the bill will first
      apply;
          2) correct typographical errors;
          3)provide that no penalties or interest shall accrue for
      underpayment of tax due to the retroactivity of parts of the bill;
          4) provide that certain transfers of real property are not subject
      to the realty transfer fee, which was neglected in the introduced
      version of the bill; and
          5) eliminate a provision from a Corporation Business Tax
      section of law which as introduced stated that a combined group
      shall be treated as one taxpayer for intercompany transfers for
      purposes of the realty transfer fee, the controlling interest transfer
      tax, and the bulk sales notice requirements; for sake of clarity, the
      requirement to treat a combined group as one taxpayer for
      intercompany transfers is instead put directly in the provisions of
      law dealing with the realty transfer fee, the controlling interest
      transfer tax, and the bulk sales notice requirements.


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