Governor Christie announced this morning that the State of New Jersey will continue to honor the long-standing agreement between New Jersey and the Commonwealth of Pennsylvania which provides that the compensation of workers who reside in one state, but who work in the other, is subject to the income taxes of the state in which the worker resides. In short, there will be no change to the manner in which the compensation of these workers is taxed (despite threats to the contrary earlier this fall).
If you have any questions regarding this announcement, please contact Gordon F. Moore or another member of the Tax Group in Haddonfield, N.J. at (856) 795-2121, Philadelphia, PA at (215) 963-3300, or in Princeton at (609) 580-3700.
DISCLAIMER: This client advisory is for general information purposes only. It does not constitute legal or tax advice, and may not be used and relied upon as a substitute for legal or tax advice regarding a specific issue or problem. Advice should be obtained from a qualified attorney or tax practitioner licensed to practice in the jurisdiction where that advice is sought.