September 30,2016
the staff of the Ridgewood blog
Ridgewood NJ, late Friday while all eyes were on the Hoboken Train tragedy and the National Transportation Safety Board (NTSB) Governor Christie, Senate President Sweeney and Speaker Prieto reached a tentative agreement to finance the Transportation Trust Fund (TTF).A special legislative session will be called next week to ratify this agreement so it is subject to change.
The following are some of the details that have emerged :
0.23-cent gasoline tax increase…bringing total to 37.5 cent/gallon tax on gasoline
Sales tax cut: On 1/1/17, the sales tax will go from 7% to 6.875% and in 2018 to 6.625%.
Increase the Earned Income Tax Credit for the working poor to 35 percent of the federal benefit amount beginning in tax year 2016
Tax Savings for Retirees: Increase the New Jersey gross income tax exclusion on pension and retirement income over four years to $100,000 for joint filers, $75,000 for individuals and $50,000 for married/filing separately
Eliminate the Estate Tax: Phase out the estate tax over the next 15 months, replacing the current $675,000 threshold with a $2 million exclusion after January 1, 2017 and eliminating the estate tax altogether as of January 1, 2018
Tax Savings for Veterans: Provide a personal exemption on state income taxes for all New Jersey veterans honorably discharged from active service in the military or the National Guard.
