Proposed New Jersey nexus regulations.

On November 21, 1995, Tax Executives Institute submitted the following comments to the New Jersey Division of Taxation on proposed regulations concerning the definition of "doing business in New Jersey" for purposes of the State's Corporation Business Tax. The Institute's comments, which took the form of a letter from TEI President Jack R. Skinner to Nicholas Catalano, Chief, Tax Services, were prepared under the aegis of the Institute's State and Local Tax Committee, whose chair is Christopher W Baldwin of Gannett Co., Inc. The following members of the Institute also participated in the development of the Institute's position: J Robert Arthur of Johnson & Johnson, who is president of TEI's New Jersey Chapter, Jeffrey M. Rhines of AT&T, who is chair of the chapter's State and Local Tax Committee; and John J. Quick of Beneficial Management Corp., who is also a member of the New Jersey Chapter.

On behalf of Tax Executives Institute, I am pleased to provide the following comments on the Division of Taxation's proposed regulations under sections 18:7-1.6, 18:7-1.8, 18:7-1.9, and 18:7-1.10 of the New Jersey Administrative Code, relating to the Corporation Business Tax -- Doing Business in New Jersey.

Background

Tax Executives Institute is a volunteer, professional association of nearly 5,000 accountants, lawyers, and other professionals who are responsible for managing the tax affairs of their companies. The Institute's New Jersey Chapter has approximately 200 members from various corporations within the State of New Jersey, and a substantial number of our other members work for companies with significant operations, sales, or activities in New Jersey. In total, more than 2,700 companies are represented by our membership, which must contend daily with business tax laws, from both tax planning and tax compliance perspectives.

TEI is dedicated to the development and effective implementation of sound tax policy, to promoting the uniform and equitable enforcement of the tax laws, and to reducing the cost and burden of administration and compliance to the benefit of taxpayers and the government alike. The Institute is also firmly committed to preserving the Commerce Clause and Due Process rights of business taxpayers, to bringing both equity and clarity to the taxation of multi-jurisdictional businesses, and to maintaining a tax system that works -- both for taxpayers and tax administrators.

Discussion

The proposed regulations represent an ambitious...