New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 35 - NEW JERSEY GROSS INCOME TAX
Subchapter 2 - EXCLUSIONS AND DEDUCTIONS
Section 18:35-2.1 - Interest and gains from certain obligations; taxable status of State and Federal securities
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Gross income shall not include interest on obligations:
(b) Under the authority of 54A:9-17, which empowers the Division to require such facts and information to be reported as are deemed necessary to enforce the provisions of the Gross Income Tax Act, every person required to file a resident New Jersey Gross Income Tax Return (NJ-1040) for a taxable year shall report on such return the amount of interest received or accrued during the taxable year which is exempt from the gross income tax.
(c) The term net gains or income shall not include gains or income derived from obligations whose interest is exempt from tax under (c)1 below. Losses from sales of such exempt securities shall not be taken into account in the computation of gains from disposition of property. A list of various securities follows, together with an indication of whether the interest and the gains therefrom are taxable or exempt:
| 1. Federal securities: | ||
| Security | Interest | |
| i. | Asian Development Bank | T |
| ii. | Bank for Cooperatives | E |
| iii. | Environmental Financing Authority | T |
| iv. | Export-Import Bank of the United States ("Eximbank"): | |
| (1) | Series 1978--B debentures | E |
| (2) | Participation certificates (reversal of Counsel opinion dated 8/29/67) | T |
| v. | Federal Deposit Insurance Corporation | E |
| obligations | ||
| vi. | Federal Housing Authority (F.H.A.) | E |
| vii. | Farmers Home Administration | E |
| viii. | Federal Financing Bank | E |
| ix. | Federal Home Loan Bank | E |
| x. | Federal Home Loan Mortgage Corp. | T |
| xi. | Federal Intermediate Credit Banks | E |
| xii. | Federal Land Banks | E |
| xiii. | Federal National Mortgage Association (Fannie Mae): | |
| (1) | Interest on bonds and debentures | T |
| (2) | Guaranteed Participation Certificates | T |
| xiv. | Federal Savings and Loan Insurance Corporation | E |
| obligations | ||
| xv. | General Services Administration | E |
| xvi. | Government National Mortgage Association | T |
| (Ginnie Mae) | ||
| xvii. | Guam | E |
| xviii. | H.U.D./New Communities | E |
| xix. | H.U.D. Public Housing Notes and Bonds (Tax free in State of issuance) | |
| (In state of issuance) | E | |
| (1) | If issued in the District of Columbia, | |
| Puerto Rico, the Virgin Islands, they | ||
| are exempt from all State tax. | ||
| (If issued in other states) | T | |
| xx. | Inter-American Development Bank Bonds | T |
| xxi. | International Monetary Fund and Bank for | T |
| Reconstruction and Development (World Bank) | ||
| xxii. | Jonathan Development Corporation (Obligations | T |
| guaranteed under New Communities Act of 1968) | ||
| xxiii. | Merchant Marine | E |
| xxiv. | Panama Canal Zone Bonds specifically exempt from tax by 31 U.S.C. §§ 744 and 745 | E |
| xxv. | Production Credit Associations | E |
| xxvi. | Puerto Rico Water Resources--4.2 per cent bonds | E |
| due 1/1/89--Interest on Bonds | ||
| xxvii. | Puerto Rico | E |
| xxviii. | R.F.K. Stadium Bonds | T |
| xxix. | Small Business Administration | E |
| xxx. | Student Loan Marketing Association | E |
| xxxi. | Tennessee Valley Authority | E |
| xxxii. | U.S. Postal Service | E |
| xxxiii. | U.S. Treasury | E |
| xxxiv. | U.S. Treasury Bills | E |
| xxxv. | USAVE Certificates--Farmers Home Administration | Partially |
| Insured Loan Notes | ||
| xxxvi. | Virgin Islands | E |
| xxxvii. | Washington Metropolitan Area Transit Authority | T |
| Bonds |
(d) Gross income shall include interest and gains from obligations issued by or on behalf of other states of the United States, and foreign governments.
