Bill Text: NJ S784 | 2018-2019 | Regular Session | Amended

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Bill Title: Provides a gross income tax exclusion for attorney's fees and costs received in connection with certain unlawful discrimination, unlawful retaliation, and qui tam claims or actions.*

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Vetoed) 2019-01-31 - Absolute Veto, Received in the Senate [S784 Detail]

Download: New_Jersey-2018-S784-Amended.html

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[First Reprint]

SENATE, No. 784

STATE OF NEW JERSEY

218th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION

 

 

Sponsored by:

Senator  PAUL A. SARLO

District 36 (Bergen and Passaic)

Senator  STEVEN V. OROHO

District 24 (Morris, Sussex and Warren)

 

Co-Sponsored by:

Senators Addiego and O'Scanlon

 

 

 

 

SYNOPSIS

     Provides gross income tax exclusion for attorney's fees and costs received in connection with certain unlawful discrimination, unlawful retaliation, and qui tam claims or actions.

 

CURRENT VERSION OF TEXT

     As amended by the Senate on February 26, 2018.

  

An Act providing a gross income tax exclusion for attorney's fees and costs received in connection with certain unlawful discrimination ¹[or] ,¹ unlawful retaliation ¹, and qui tam¹ claims or actions, supplementing Title 54A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.   Gross income shall not include amounts received by the taxpayer for attorney's fees and costs or amounts paid by, or on behalf of the taxpayer, for attorney's fees and costs in connection with an informal claim or legal action, whether by suit or agreement and whether as a lump sum or periodic payment, for unlawful discrimination or unlawful retaliation.  The amount of the exclusion shall be limited to the ¹[amount of the gross judgment or settlement, including an]¹ award ¹or payment¹ of attorney's fees and costs ¹[,]¹ to the taxpayer ¹, without regard to any other amount of judgment or settlement¹.

     b.    ¹Gross income shall not include amounts incurred by the taxpayer for attorney's fees and costs or amounts paid by, or on behalf of the taxpayer, for attorney's fees and costs, and payments to other relators pursuant to a sharing agreement, in connection with the amount of awards recovered by the taxpayer pursuant to the federal False Claims Act, 31 U.S.C. s.3730(b), the "New Jersey False Claims Act," P.L.2007, c.265 (C.2A:32C-1 et seq.), or any other similar qui tam action.

     c.¹   As used in this section, "unlawful discrimination or unlawful retaliation" means an act that is unlawful under a provision of federal, state, or local law, or common law claims permitted under federal, state, or local law:

     (1)   providing for the enforcement of civil rights, or

     (2)   regulating any aspect of the employment relationship, including claims for wages, severance, overtime, compensation, breach of contract, or benefits, or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights, engaging in protected whistleblowing activity, or taking other actions permitted or protected by federal, state, local, or common law.

 

     2.    This act shall take effect immediately and apply to taxable years ending after its date of enactment.