In a survey conducted by Roseland-based New Jersey Society of Certified Public Accountants (NJCPA), more than one-third of respondents indicated that they will change their advice to clients following passage of legislation that will phase out New Jersey’s estate tax by 2018.
CPAs participating in the survey were asked: In light of the changes to New Jersey’s estate tax, will you continue to advise Garden State clients to relocate out of the state?
- 28 percent said yes, New Jersey’s tax climate and cost of living still make relocation the best option for many clients.
- 36 percent said no, eliminating the estate tax is an important first step in making New Jersey more affordable.
- 36 percent aren’t sure. They believe there are still many unanswered questions, including whether or not the estate tax might be restored under a new administration.
“We are thrilled that New Jersey lawmakers are working to create a healthier economic climate in New Jersey. The elimination of the estate tax is a significant step in keeping Garden State residents — and their incomes — in the state,” said NJCPA executive director and CEO, Ralph Albert Thomas, CGMA.
In a 2015 survey of NJCPA members, 74 percent of respondents indicated that they had “advised a client to consider relocation due to New Jersey’s estate and inheritance taxes.” While the new survey shows that CPAs are now less likely to advise clients to relocate, many are concerned about whether the estate tax repeal will be restored under a new administration.