THIS JUST IN!

According to the CCH Daily Tax Headlines online newsletter the New Jersey legislature has passed a state budget package that contains no new taxes or tax increases, but would do the following:

-- fund the maximum 20% property tax credit based in part on household income and double the amount of tenant rebates;

-- sunset the alternative minimum assessment (AMA) and the S corporation surcharge;

-- expand the state earned income tax credit (EITC) eligibility criteria to match the criteria under the federal EITC program and increase the state benefit amount for the EITC, on a phased-in basis over three years, up to 25% of the federal benefit by tax year 2009; and

-- exempt initiation fees, membership fees, and dues charged by nonprofit health and fitness, athletic, and sporting clubs or nonprofit shopping clubs, and certain parking services, from state sales and use tax.

This ends the policy of the past few years of last minute nickel and dime-ing of NJ individual and business (especially business) taxpayers to balance the budget.