Gov. Phil Murphy signaled he would enact a bill April 14 to extend New Jersey’s income and corporate tax filing to July 15. The Covid-19 Fiscal Mitigation Act won approval in the Legislature April 13.
Murphy noted the delay would provide financial flexibility to both the state and its residents as they endured the coronavirus pandemic.
“Pushing this deadline into the summer will give us additional time to combat the virus and get as many taxpayers as possible back on sound financial footing,” the governor said.
In the Senate, the bill was sponsored Sens. Paul Sarlo, Steven Oroho, and Anthony M. Bucco. In the Assembly, Assemblymembers Eliana Pintor Marin, Harold Wirths, and John Burzichelli served as sponsors.
Deadlines Extended for Income, Corporate Taxes
The legislation extends both Gross Income Tax and Corporation Business Tax filings, aligning to the federal deadline announced in March.
The bill extends the state fiscal year 2020 to Sept. 30, and extends the deadline for the quarterly payment due the week of April 12 to July 15. Of note, the second quarter payment will remain due on June 15.
The State Treasurer will be required to disclose the conditions of the budget for fiscal years 2020 and 2021 on May 22 under the law. Additionally, a revised budget proposal for fiscal year 2021 will be submitted by the governor by Aug. 25.
Addressing Uncertainty, Providing Stability
The act was praised by legislators as a way to provide stability among New Jersey residents facing unprecedented hardship. The breathing room would allow residents valuable time to calculate and manage their finances.
“We don’t yet know the full dimensions of the financial consequences for residents, businesses and the state, but there is no doubt that we all face some hard times,” said Sen. Sarlo.
Additionally, the pause would give the state time to develop a working budget to address issues caused by the coronavirus without sacrificing needed items if rushed to passage.
“Given that uncertainty, the challenges faced by taxpayers, and our inability to know if a State budget rushed to passage under these circumstances would truly be balanced as required by the New Jersey Constitution, changing the tax filing deadline and extending the State fiscal year are prudent moves,” said Sen. Bucco “Time will offer clarity on our fiscal picture and guidance on the best path forward.”
