Senate Commerce Committee Statement to Senate, No. 3116 — State of New Jersey (February 11, 2021)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 3116, State of New Jersey, dated February 11, 2021, reporting the bill favorably. The bill provides that the State shared responsibility tax is not imposed for any month in which the public health emergency declared in Executive Order 103 of 2020, or its extension or replacement, is in effect, if the taxpayer receives unemployment benefits or has a substantial loss of income. The statement says current law requires certain taxpayers to pay the tax for each month without minimum essential coverage. A "substantial loss of income" means a reduction in monthly income of 50 percent or greater compared with the taxpayer's average monthly income in tax year 2019.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
3116

STATE
OF NEW JERSEY

DATED: FEBRUARY
11, 2021

The
Senate Commerce Committee reports favorably Senate Bill No. 3116.

This
bill provides that, for any month during which the public health emergency
declared by the Governor in Executive Order 103 of 2020 concerning the
coronavirus disease 2019 pandemic, or an extension or replacement of that
Executive Order, is in effect the State shared responsibility tax shall not be
imposed with respect to any applicable individual for that month if the
taxpayer:

(1) receives
unemployment benefits; or

(2) is
experiencing a substantial loss of income.

Current
law requires certain taxpayers to pay the State shared responsibility tax for
each month the taxpayer or the taxpayer’s dependents do not have minimum
essential coverage to provide for the costs of health care services. This bill
suspends that requirement during the coronavirus disease 2019 pandemic for
taxpayers receiving unemployment benefits and taxpayers who have experienced a
substantial loss of income.

Under
the bill, a “substantial loss of income” means a reduction in monthly income of
50 percent or greater in a month, as compared to the taxpayer’s average monthly
income in tax year 2019.

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