New Jersey Administrative Code › Title 18 - TREASURY - TAXATION › Chapter 35 - NEW JERSEY GROSS INCOME TAX › Subchapter 11 - FILING FEE PAYMENTS BY PARTNERSHIPS › Section 18:35-11.6 - Partnership examples of the imposition of the filing fee

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following are
				examples of the application of the filing fee to a variety of situations.
Example 1: A limited partnership operates a profitable shopping
				  center in Middlesex County, New Jersey. It has 20 partners. All reside in New
				  Jersey. The partnership is liable for a partnership filing fee of $ 3,000 (20 x $
				  150.00) plus an installment payment of 50 percent of the current year's fee ($
				  1,500) for the succeeding year.
Example 2: A Connecticut partnership with an office in New Haven
				  sells small tables. Ten partners reside in New Jersey and ten reside in Connecticut.
				  The New Jersey customers of the business purchase $ 200,000 worth of tables per
				  year. Four Connecticut partners remain outside New Jersey, but six Connecticut
				  resident partners work in the partnership's New Jersey office.
Since the partnership includes nonresident partners, the
				  apportionment methodology for the partnership filing fee may be used. The
				  partnership's allocation factor is assumed to be 0.4.
The fee is calculated as follows:
The number of New Jersey resident partners is multiplied by $
				  150.00.
10 x $ 150.00 = $ 1,500
The number of nonresident partners with physical nexus with New
				  Jersey multiplied by $ 150.00.
6 x $ 150.00 = $ 900.00
The number of nonresident partners without physical nexus to New
				  Jersey is multiplied by $ 150.00 and the result is multiplied by the allocation
				  factor.
4 x $ 150.00 = $ 600.00
$ 600.00 x 0.4 = $ 240.00
The total fee for the current calendar year is:
$ 1,500 + $ 900.00 + $ 240.00 = $ 2,640
The prepayment for the subsequent calendar year is:
$ 2,640 x 50 percent = $ 1,320
Example 3: A limited partnership, East, L.P., is organized and
				  has an office in New Jersey. It has 10 limited partners and two general partners.
				  One of the limited partners is a California limited partnership, West, L.P., having
				  15 partners all of whom are based in an office in Los Angeles. Certain property
				  belonging to West, L.P., is stored at East, L.P.'s office in New Jersey. The Los
				  Angeles limited partnership received a $ 1,000,000 distribution in the current
				  calendar year from the New Jersey partnership. West, L.P.'s apportionment formula is
				  10 percent or 0.1.
First, in the current calendar year the New Jersey partnership
				  pays a fee of (12 x $ 150.00) $ 1,800 for that year since all its partners had a
				  presence in New Jersey plus a prepayment of $ 900.00 (50 percent x $ 1,800) for the
				  subsequent calendar year.
Second, since the California partnership derives income from New
				  Jersey, it is also responsible for the partnership fee. Its fee is calculated as
				  follows:
0 Resident partners = $ 0
0 Non-resident partners with physical nexus = $ 0
15 Non-resident partners without physical nexus to New
				  Jersey
15 x $ 150.00 = $ 2,250
$ 2,250 x 0.1 = $ 225.00 which is the fee for the California
				  partnership.
Example 4: A family limited partnership is organized so that two
				  general partners receive K-1s and two limited partners that receive no income from
				  the partnership do not receive K-1s.
The partnership fee is 4 x $ 150.00. There are four owners of the
				  partnership and the partnership directory discloses them as such. The fact that two
				  partners do not receive K-1s is not material, and they are still counted toward the
				  fee total since they are also owners of the partnership.