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October 19, 2020 TO: ICI MembersTax Committee SUBJECTS: State Issues
Tax RE: ICI Submits Written Testimony Opposing New Jersey FTT
The Investment Company Institute submitted the attached written testimony in opposition to a New Jersey proposal to impose a tax of a quarter of a cent ($.0025) per transaction on high-volume processors of financial transactions[1]. ICI also provided oral testimony opposing the financial transaction tax (FTT) proposal at a Financial Institutions and Insurance committee hearing on October 19, 2020.
The proposed FTT was recently amended (attached) to provide that the first taxpayer to process a security in a transaction is the party that would be subject to the FTT. The amendment also provides that the tax would take effect on January 1, 2021 and expire on December 31, 2022.
Katie Sunderland
Assistant General Counsel
endnotes
[1] See ICI Memorandum 32723 dated August 31, 2020.