Warren: N.J. bill to protect tax pact with Pa. is welcome news for commuters

HARRISBURG, June 22 – A bill protecting the New Jersey-Pennsylvania tax reciprocity pact passed the New Jersey General Assembly on Thursday and is on its way for New Jersey Gov. Phil Murphy’s review.

The agreement at the heart of New Jersey S.B. 878 allows Pennsylvania residents who work in New Jersey to pay their income taxes in Pennsylvania and vice versa.

Under the bill, should Murphy sign it, it would take an act of the New Jersey state legislature to undo the pact, which has been in place on good faith for more than 30 years.

“This issue almost amounted to a tax grab on Pennsylvania residents when Governor Chris Christie threatened to break it a few years back, but thanks to cooler heads, it didn’t happen then, and with this bill the pact should be shored up and our residents can rest a little easier knowing that their tax obligations won’t shift on a political whim,” said Pennsylvania state Rep. Perry Warren, D-Bucks.

Warren earlier wrote the New Jersey State Legislature expressing his support in protecting the tax pact.

“There are 46,000 Bucks County residents who work in New Jersey and would be adversely affected financially if this tax reciprocity agreement were terminated,” Warren said. “With the approval of NJ S.B. 878, my constituents will be able to budget and make work and life plans without fear that they will be compelled to pay New Jersey income taxes.”