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54:8A-6. Rates; computation of tax upon entire net income
(a) (Deleted by amendment.) P.L.1972, c. 12.
(b) For taxable years ending after December 31, 1971 through and including those ending in 1977, the tax imposed by this act upon entire net income shall be computed at the following rates:
On such of But
the amount does not
as exceeds exceed The tax is
$0 $1,000 2%
1,000 3,000 $20 plus 3% of excess over $1,000
3,000 5,000 80 plus 4% of excess over 3,000
5,000 7,000 160 plus 5% of excess over 5,000
7,000 9,000 260 plus 6% of excess over 7,000
9,000 11,000 380 plus 7% of excess over 9,000
11,000 13,000 520 plus 8% of excess over 11,000
13,000 15,000 680 plus 9% of excess over 13,000
15,000 17,000 860 plus 10% of excess over 15,000
17,000 19,000 1,060 plus 11% of excess over 17,000
19,000 21,000 1,280 plus 12% of excess over 19,000
21,000 23,000 1,520 plus 13% of excess over 21,000
23,000 25,000 1,780 plus 14% of excess over 23,000
25,000 2,060 plus 15% of excess over 25,000
(c)(1) For taxable years ending after December 31, 1977 through and including those ending in 1978, the tax imposed by this act upon entire net income shall be computed at the following rates:
On such of But
the amount does not
as exceeds exceed The tax is
$0 $1,000 2%
1,000 3,000 $20 plus 3% of excess over $1,000
3,000 5,000 80 plus 4% of excess over 3,000
5,000 7,000 160 plus 5% of excess over 5,000
7,000 9,000 260 plus 6% of excess over 7,000
9,000 11,000 380 plus 7% of excess over 9,000
11,000 13,000 520 plus 8% of excess over 11,000
13,000 15,000 680 plus 9% of excess over 13,000
15,000 17,000 860 plus 10% of excess over 15,000
17,000 19,000 1,060 plus 11% of excess over 17,000
19,000 21,000 1,280 plus 12% of excess over 19,000
21,000 23,000 1,520 plus 13% of excess over 21,000
23,000 30,000 1,780 plus 14% of excess over 23,000
30,000 2,760 plus 15% of excess over 30,000
(2) For taxable years ending after December 31, 1978, the tax imposed by this act upon entire net income shall be computed at the following rates:
On such of But
the amount does not
as exceeds exceed The tax is
$0 $1,000 2%
1,000 3,000 $20 plus 3% of excess over $1,000
3,000 5,000 80 plus 4% of excess over 3,000
5,000 7,000 160 plus 5% of excess over 5,000
7,000 9,000 260 plus 6% of excess over 7,000
9,000 11,000 380 plus 7% of excess over 9,000
11,000 13,000 520 plus 8% of excess over 11,000
13,000 15,000 680 plus 9% of excess over 13,000
15,000 17,000 860 plus 10% of excess over 15,000
17,000 19,000 1,060 plus 11% of excess over 17,000
19,000 21,000 1,280 plus 12% of excess over 19,000
21,000 23,000 1,520 plus 13% of excess over 21,000
23,000 1,780 plus 14% of excess over 23,000
(d)(1) For each taxable year beginning in 1977 and ending in 1978 two tentative taxes shall be computed, the first as provided in subsection (b) and the second as provided in subsection (c)(1), and the tax for such year shall be the sum of that proportion of each tentative tax which the number of days in 1977 and the number of days in 1978, respectively, bears to the number of days in the entire taxable year.
(2) For each taxable year beginning in 1978 and ending in 1979 two tentative taxes shall be computed, the first as provided in subsection (c)(1) and the second as provided in subsection (c)(2), and the tax for such year shall be the sum of that proportion of each tentative tax which the number of days in 1978 and the number of days in 1979, respectively, bears to the number of days in the entire taxable year.
(e) For taxable years beginning on or after January 1, 1972, the tax imposed by section 9 of P.L. 1970, c. 304 (C. 54:8A-6.1) on minimum taxable income, as defined in section 10 of P.L. 1970, c. 304 (C. 54:8A-6.2) shall be at the rate of 6%.
L. 1961, c. 32, s. 6; amended by L. 1968, c. 59; 1970, c. 304, s.2; 1972, c. 12, s. 2; 1978, c. 131, s. 1.
54:8A-6.1. Minimum income tax on minimum taxable income of each individual
In addition to the tax imposed under section 2 (C. 54:8A-2), a minimum income tax determined in accordance with the rate set forth in subsection (e) of section 6 (C. 54:8A-6) is hereby imposed for each taxable year on the minimum taxable income of every individual.
L.1970, c. 304, s. 9. Amended by L.1973, c. 244, s. 3, eff. Nov. 21, 1973.
54:8A-6.2. Minimum taxable income
(a) The minimum taxable income shall be the sum of the items of tax preference, as described in subsection (b) of this section, reduced (but not below zero) by the aggregate of the following:
(1) The applicable specific deduction described in subsection (c) of this section;
(2) The tax determined under subsection (c) of section 6 of P.L.1961, c. 32 (C. 54:8A-6) for the taxable year, reduced by the sum of the credits allowable under subsection b. of section 7 of P.L.1978, c. 131 (C. 54:8A-15.1); and
(3) To the extent that the sum of the items of tax preference exceeds the applicable specific deduction described in subsection (c) of this section plus the tax described in paragraph 2 above, the amount of any net operating loss of the taxpayer, determined as provided in subsection (b)(5) of section 35 (C. 54:8A-35), which remains as a net operating loss carryover to a succeeding taxable year. In such case, however, the amount of such net operating loss used to reduce the sum of the items of tax preference shall be treated as an item of tax preference in the next succeeding taxable years, in order of time, to the extent that such net operating loss carryover reduces taxable income.
(b) For purposes of this act, the term ~items of tax preference~ shall mean the federal items of tax preference, as defined in the laws of the United States, derived from or connected with New Jersey sources, for the taxable year, with the modifications as may be prescribed by regulations of the Division of Taxation which relate to income derived from or connected with New Jersey sources.
(1) The federal items of tax preference for amortization of certified pollution control facilities shall be excluded from the computation of items of tax preference with respect to industrial waste treatment facilities and air pollution control facilities which qualify.
(2) The federal items of tax preference with respect to depletion shall be excluded from the computation of items of tax preference.
(3) The federal item of tax preference for capital gains shall be computed by subtracting from such tax preference item an amount sufficient (if necessary) to reduce such tax preference item to 60% of net capital gains.
(4) The federal item of tax preference for adjusted itemized deductions shall be computed as if the required reduction of federal adjusted gross income by the amount of the taxpayer@s federal deduction for state and local taxes did not include any amount includible as a modification reducing federal itemized deductions pursuant to subparagraph (A) of paragraph (2) of subsection (b) of section 37 of P.L.1961, c. 32 (C. 54:8A-37).
(c) Specific deduction. An amount which bears the same ratio to $5,000.00, or $2,500.00 in the case of a married individual filing a separate return, as his items of tax preference computed under subsection (b) of this section bear to his total federal items of tax preference.
(d) (Deleted by amendment; P.L.1972, c. 12, section 3.)
L.1970, c. 304, s. 10. Amended by L.1972, c. 12, s. 3; L.1973, c. 244, s. 4, eff. Nov. 21, 1973; L.1978, c. 131, s. 4, eff. Oct. 18, 1978; L.1981, c. 374, s. 5, eff. Dec. 30, 1981.
54:8A-6.3. Tax surcharge
(a) In addition to the taxes imposed by sections 6(c) (C. 54:8A-6(c)) and 6(e) (C. 54:8A-6(e)), there is hereby imposed on the income of every taxpayer for the taxable years ending after December 31, 1971 and commencing on or before December 31, 1976 a tax at the rate of 2 1/2 % of the taxes imposed under sections 6(c) (C. 54:8A-6(c)) and 6(e) (C. 54:8A-6(e)) before the deduction of any credits against tax allowable for such year except with respect to the tax credit allowed under section 16 (C. 54:8A-16).
(b) Provided, however, that for each taxable year beginning in 1971 and ending in 1972, a tentative tax shall be computed as provided in subsection (a) except that the tax imposed under section 2 (C. 54:2A-2) shall be computed in accordance with the rates set forth in subsection 6(c) thereof; the additional tax imposed under this section for such year shall be that proportion of such tentative tax as the number of days in 1972 bears to the number of days in the entire taxable year.
(c) Provided further that for each taxable year beginning in 1976 and ending in 1977, a tentative tax shall be computed as provided in subsection (a) hereof and the additional tax imposed under this section for such year shall be that proportion of such tentative tax as the number of days in 1976 bears to the number of days in the entire taxable year.
(d) Notwithstanding the provisions of subsection (a) of this section, the tax imposed by such subsection shall not apply for taxable year ending after December 31, 1972 and commencing before January 1, 1975, provided further that for each taxable year beginning in 1972 and ending in 1973, a tentative tax shall be computed as provided in subsection (a) and the additional tax imposed under this section for such year shall be that proportion of such tentative tax as the number of days in 1972 bears to the number of days in the entire taxable year. Provided further that for each taxable year beginning in 1974 and ending in 1975, a tentative tax shall be computed as provided in subsection (a) and the additional tax imposed under this section for such year shall be that proportion of such tentative tax as the number of days in 1975 bears to the number of days in the entire taxable year.
L.1972, c. 12, s. 9. Amended by L.1973, c. 244, s. 5, eff. Nov. 21, 1973; L.1974, c. 187, s. 1, eff. Dec. 24, 1974.
54:8A-6.4. Maximum tax rate on personal service income
(a) If for any taxable year beginning in 1978 and thereafter an individual has personal service entire net income which exceeds the amount of entire net income specified in paragraph (1) of this subsection, the tax determined pursuant to subsection 6(c) of P.L.1961, c. 32 (C. 54:8A-6(c)) for such year shall be the sum of:
(1) The tax determined by subsection 6(c) of P.L.1961, c. 32 (C. 54:8A-6(c)) on the highest amount of entire net income on which the rate of tax does not exceed 10%, provided, however, that for taxable years beginning on or after January 1, 1978 and before January 1, 1980, it shall be the tax determined by subsection 6(c) of P.L.1961, c. 32 (C. 54:8A-6(c)) on the highest amount of entire net income on which the rate of tax does not exceed 12%, and provided further that for taxable years beginning on or after January 1, 1980 and on or before January 1, 1981, it shall be the tax determined on the highest amount of entire net income on which the rate of tax does not exceed 11%,
(2) 10% of the amount by which his personal service entire net income exceeds the amount of entire net income specified in paragraph (1) of this subsection, provided, however, that for taxable years beginning on or after January 1, 1978 and before January 1, 1980, the rate in this paragraph shall be 12% and that for taxable years beginning on or after January 1, 1980 and before January 1, 1981, the rate in this paragraph shall be 11%, and
(3) The excess of the tax determined under section 6(c) of P.L.1961, c. 32 (C. 54:8A-6(c)), without regard to this section, over the tax so determined with reference solely to his personal service entire net income.
(b) For purposes of this section the term ~personal service income~ means items of income includible as personal service income for purposes of section 1348 of the Internal Revenue Code; provided, however, that notwithstanding the provisions of such section of the Internal Revenue Code to the contrary with respect to the filing of returns by married individuals, the provisions of this section of this act shall be applicable in the case of a husband and wife who file separate New Jersey tax returns (whether or not on a single form).
(c) The personal service entire net income of an individual is the excess of:
(1) The amount which bears the same ratio (but not in excess of 100%) to his entire net income as his personal service gross income bears to his entire gross income, over
(2) The sum of his items of tax preference, as defined in this act, other than the item of tax preference for capital gains, for the taxable year.
For purposes of paragraph (1) of this subsection, the term ~personal service gross income~ means personal service income reduced by any deductions allowable under section 62 of the Internal Revenue Code which are properly allocable to or chargeable against such personal service income.
L.1978, c. 131, s. 6, eff. Oct. 18, 1978. Amended by L.1979, c. 437, s. 1, eff. Feb. 14, 1980; L.1981, c. 374, s. 6, eff. Dec. 30, 1981.
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