NJ Charities Get a Boost from New Legislation

NJ Charities Get a Boost from New Legislation
The July 2013 Riker Danzig Tax and Trusts & Estates Update

Taxpayers who have changed their domicile from New Jersey often go to great lengths to minimize New Jersey contacts to avoid a challenge to their changed state residence. In the past, there was concern that even making donations to New Jersey-based charities could be used against a taxpayer claiming non-residence. Thankfully, that is no longer the case.

On June 27, 2013, Governor Chris Christie signed into law a bill that prohibits the State from taking into account any tax-deductible contribution of money or property to a New Jersey charity, or any time spent volunteering for a 501(c)(3) organization in New Jersey, in determining whether an individual is a resident of the state for income tax purposes. This should come as a sigh of relief to New Jersey charities and their out-of-state supporters.