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. 18, September 16, 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.
