State and Local Tax Alert - July 2014
On June 30, 2014, New Jersey Governor Chris Christie signed into law A. 3486, 216th Leg. (N.J. 2014) ("A. 3486"), which results in several significant tax changes, including changes to the Corporation Business Tax ("CBT") laws as follows: (1) broaden the definition of operational income; (2) require a nonresident partner (corporate or noncorporate) to file a tax return in order to obtain a credit/refund of income tax paid on its behalf; and (3) reduce a net operating loss ("NOL") for debt discharged and excluded from income on account of bankruptcy or insolvency. In addition, for sales and use tax purposes, the state has adopted a "click-through nexus" standard with respect to Internet sales activity.