Sponsored by:
Assemblyman JOHN ARMATO
District 2 (Atlantic)
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
Assemblyman GORDON M. JOHNSON
District 37 (Bergen)
Co-Sponsored by:
Assemblymen Verrelli, Auth and Freiman
SYNOPSIS
Waives shared responsibility tax payments for certain individuals without minimum essential health benefits coverage during coronavirus disease 2019 pandemic.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning minimum essential coverage and the coronavirus disease 2019 pandemic.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For any month during which Executive Order 103 of 2020 is in effect, the State shared responsibility tax established pursuant to section 3 of P.L.2018, c.31 (C.54A:11-3) shall not be imposed with respect to any applicable individual for that month if the taxpayer:
(1) receives any State or federal unemployment benefits, including regular or extended benefits and benefits received through the Pandemic Unemployment Assistance, the Pandemic Emergency Unemployment Compensation, or the Federal Pandemic Unemployment Compensation programs; or
(2) is experiencing a substantial loss of income.
b. As used in this act:
“Executive Order 103 of 2020” means the public health emergency declared by the Governor in Executive Order 103 of 2020 concerning the coronavirus disease 2019 pandemic, or an extension or replacement of that Executive Order.
“Substantial loss of income” means a reduction in monthly income of 50 percent or greater in a month, as compared to the taxpayer’s average monthly income in tax year 2019.
2. This act shall take effect immediately, shall be retroactive to March 9, 2020, and shall expire 12 months following the expiration of Executive Order 103 of 2020.
STATEMENT
This bill provides that, for any month during which the public health emergency declared by the Governor in Executive Order 103 of 2020 concerning the coronavirus disease 2019 pandemic, or an extension or replacement of that Executive Order, is in effect the State shared responsibility tax shall not be imposed with respect to any applicable individual for that month if the taxpayer:
(1) receives unemployment benefits; or
(2) is experiencing a substantial loss of income.
Current law requires certain taxpayers to pay the State shared responsibility tax for each month the taxpayer or the taxpayer’s dependents do not have minimum essential coverage to provide for the costs of health care services. This bill suspends that requirement during the coronavirus disease 2019 pandemic for taxpayers receiving unemployment benefits and taxpayers who have experienced a substantial loss of income.
Under the bill, a “substantial loss of income” means a reduction in monthly income of 50 percent or greater in a month, as compared to the taxpayer’s average monthly income in tax year 2019.