New Jersey Tax Court Strikes Down Investment Company Regulation


Peter Faber said he has encountered examples of the New Jersey Division of Taxation exceeding its regulatory authority, which the state tax court disallowed in Manheim NJ Investments. “The tax court properly held that the [Division’s] regulation was invalid because it narrowed the statutory language — something that a regulation cannot do,” Mr. Faber said. “The division has tried to do this before, and the court has rejected its attempts to do so. One would have hoped that the division had learned its lesson, but apparently it did not.”