New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 7 - CORPORATION BUSINESS TAX ACT
Subchapter 19 - FILING FEE PAYMENTS BY PROFESSIONAL CORPORATIONS
Section 18:7-19.2 - Payment of filing fee

(a) For privilege periods beginning on or after January 1, 2002, each professional corporation filing a corporation business tax return that has more than two licensed professionals shall make a payment of a filing fee of $150.00 for each licensed professional of the corporation, provided that the payment shall not exceed $250,000.

(b) If a professional corporation includes nonresident professionals, some of whom have physical nexus with New Jersey and some of whom do not, then an apportionment methodology for the professional corporation filing fee may be used, provided that the professional corporation has an office outside New Jersey.

(c) The total apportioned professional corporation fee is equal to the sum of:

(d) Example: A professional corporation has an office in Washington, D.C. It has 100 professionals in that office. Three of the attorneys travel from Washington to Newark, N.J. for a trial. As the result of their legal work in New Jersey, the firm receives a $ 1,000,000 legal fee. The professional corporation's New Jersey allocation factor for 2002 is 0 property, 0 payroll, $ 1,000,000 New Jersey receipts divided by $ 10,000,000 receipts everywhere which equals

(0 + 0 + 1/10 + 1/10) /4 = 0.05.

The professional corporation fee is then calculated as follows: 0 Resident professionals = 0

Three nonresident professionals with physical nexus to New Jersey: 3 x $ 150.00 = $ 450.00

97 nonresident professionals without physical nexus

97 x $ 150.00 = $ 14,500

$ 14,550 x 0.05 = $ 727.50

Total of 0 + $ 450.00 + $ 727.50 = $ 1,177.50 total professional fee of the corporation for 2002.

(e) In calculating the number of licensed professionals of the corporation, a quarterly average is used. All professionals of the corporation are counted, regardless of the nature of their relationship to the corporation. They are included whether they are shareholders, employees, or owners and regardless of the nature of the licensed profession that they practice.

Example 1: A law firm has eight partners and 16 associates. It also employs one registered nurse and two certified public accountants. Since the firm has 27 licensed professionals, its professional fee payment is $4,050 (27 x $150.00) plus an installment payment of $2,025 (50 percent of $4,050) creditable against the succeeding year's payment.

Example 2: A nursing home that is a professional corporation has 10 physicians and 10 licensed registered nurses, half of which are nonresidents that have no physical nexus in New Jersey. The professional corporation has a New Jersey business allocation factor of 50 percent. The professional fee payment is $ 2,250 ((5 + 5) x $ 150.00) plus ((5 + 5) x $ 150.00) x 50 percent) plus an installment payment of $ 1,125 (50 percent of $ 2,250).

(f) In the event of a period shorter than a year, the fee and fee cap may be prorated by months. A fraction of a month is deemed to be a month.