State and Local Taxes
Our State and Local Tax attorneys assist our clients with a range of state and local tax issues. We frequently partner with our client’s accountants, appraisers and other financial advisors to find and implement sound solutions to their state and local tax concerns.
The firm counsels individual business owners, executives, professionals and others concerning determinations and changes of state of residency, multi-state filing requirements, the computation of state taxable income and the availability of state tax credits. State estate and inheritance taxes are also significant factors in an individual’s state and local tax plan and we assist our clients in coordinating these state tax concerns with their federal estate, gift and trust planning.
Kulzer & DiPadova advises businesses on their subjectivity to state taxes including their subjectivity to tax in New Jersey and other jurisdictions. We assist clients and their accounting professionals in determining regular taxable income, including proper methods of allocation and apportionment, planning for optimizing net operating losses and tax credits, alternative taxes, employee withholding, and payroll tax issues. Pass-through entities, such as partnerships, limited liability companies and S corporations, can present special state tax challenges and opportunities for the entity and its owners.
Sales and Use Taxes
Sales and use tax obligations can impose a significant burden on a business. Kulzer & DiPadova offers guidance to our clients concerning the taxation of their sales and purchases, the availability of exemptions, and related tax reporting requirements and procedures. We help identify when a client will be responsible for charging and collecting tax in other jurisdictions.
Real Property Tax
Business and individual taxpayers in New Jersey bear the nation’s highest real property tax burden. We offer representation before municipal and county taxing authorities with respect to real property tax issues, including valuation, special use and available exemptions.
Kulzer & DiPadova represents both New Jersey and out-of-state companies before the New Jersey Division of Taxation in contesting disputed state tax audits and assessments. When an adminstrative resolution is not available, we represent our clients before the New Jersey Tax Court and New Jersey’s appellate courts.
Tax Amnesty and Voluntary Disclosure Agreements
We assist clients in assessing their exposure for state taxes. Where unanticipated exposures exist, we pursue compliance opportunities offered by tax amnesty and voluntary disclosure programs.
Real Property Tax Appeals
The real property taxes in New Jersey are some of the highest in the nation. With declining property values, many residents find their homes are assessed too high. A reduction in the property’s assessed value results in a reduced property tax to the property owner.
We represent clients whose properties are currently assessed above fair market value by representing the client before the municipal assessor, the County Board of Taxation, and the New Jersey Tax Court, while working closely with our property appraisers. We handle real property tax appeals for residential, special use, and commercial properties.
In addition to assessment issues, our attorneys handle real property tax appeals related to property tax exemptions and real property classifications, such as farmland assessments.
Multistate Tax Matters
Corporations, limited liability companies, partnerships, trusts, as well as individuals which have various levels of connections or contacts with any state could subject that taxpayer to taxation by the state. In some instances, this may be a considerable burden to the taxpayer because of the additional record keeping and filing requirements. In other instances, this can be a planning opportunity.
The three most common types of state taxes are income tax, franchise/corporate tax and sales tax. Each type of tax requires a different level of “contact” with the state in order for the tax to be imposed.
Though record keeping and filing requirements in multiple states can be burdensome and often expensive, proper planning can reduce the taxpayer’s overall state tax expense. The taxpayer should carefully consider all aspects of multi-state taxation when deciding to expand into a new state. The failure to properly plan and comply with state tax requirements can subject the taxpayer to substantial tax, penalty and interest liability.