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In a precedential decision, New Jersey’s intermediate appellate court ruled that a Jersey City ordinance imposing a payroll tax was unconstitutional.
Mack-Cali Realty Corp. v. State, No. A-3097-18, 2021 N.J. Super. LEXIS 21 (N.J. Super. Ct. App. Div. February 16, 2021). Jersey City, New Jersey, is home to many companies’ back office operations in the New York metropolitan area. Therefore, we suspect that many companies will have this issue.
Facts: New Jersey has for many years had controversies regarding underfunding of schools in poorer districts. In 2018, a state statute was modified to allow Jersey City to enact a payroll tax, which had previously only been allowed for Newark, New Jersey, to assist with school funding. Jersey City’s ordinance became effective on January 1, 2019.