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NJ lottery winners dodge a tax bullet

New Jersey LotteryNew Jersey Lottery: NJ lottery winners dodge a tax bullet
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TRENTON, N.J. — A proposed extra tax on New Jerseyans' lottery winnings stalled today after it became clear it was unlikely to be approved by a key state Senate panel.

"It didn't have the votes," said Senate Budget Committee Chairman Paul Sarlo (D-Bergen).

The bill (S1767) would impose an additional 0.5 percent tax on lottery winnings of more than $600.

The money would be used to fund after school programs run by non-profit groups in municipalities where at least 40 percent of the school district's students are "at risk."

New Jersey currently taxes lottery winnings on a sliding scale that peaks at 10.8 percent. On the federal level, the winnings are taxed as ordinary income. The federal rate for income of more than $406,750 for a single person is 39.6 percent.

According to 2012 data from the Tax Foundation, New Jersey's top rate for lotto winners is the highest of any state in the nation.

The budget committee's endorsement was the next step before the bill was to get a vote in the full state Senate. It was already approved by the Senate's state government committee in May.

Sarlo declined to say which committee members opposed the bill, or whether he supported it.

"When the bill comes up for a vote, you'll see my vote," he said.

The bill's sponsor, state Sen. Ronald Rice (D-Essex), said he believes it will be approved by the committee when he has a chance to talk to members about it.

"I'm confident it will pass. With this bill, it makes good sense," he said.

Hunterdon County Democrat

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17 comments. Last comment 2 years ago by RedStang.
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music*'s avatar - nw bookeep.jpg
Happy California
United States
Member #157856
August 2, 2014
1511 Posts
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Posted: October 28, 2014, 10:53 am - IP Logged

  Tax and spend politicians. No surprise there.  Red Devil

    maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
    Massachusetts
    United States
    Member #37433
    April 14, 2006
    2747 Posts
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    Posted: October 28, 2014, 12:31 pm - IP Logged

    So in NJ if you win $1M on the second prize of powerball you'll fork over a little over$500,000 to the tax man? That's gotta hurt!

    I suppose it's half a mil that you didn't have so it's still good.

    That money's gone fo ever

      haymaker's avatar - Lottery-012.jpg
      Egg Harbor twp.south Jersey shore
      United States
      Member #112968
      June 29, 2011
      3854 Posts
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      Posted: October 28, 2014, 1:36 pm - IP Logged

      So in NJ if you win $1M on the second prize of powerball you'll fork over a little over$500,000 to the tax man? That's gotta hurt!

      I suppose it's half a mil that you didn't have so it's still good.

      Yea, anytime I look @ the C/V I automatically say to myself,

      Ok , so a little less then 50% is ...

      Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
        Bay Area - California
        United States
        Member #136477
        December 12, 2012
        4105 Posts
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        Posted: October 28, 2014, 1:44 pm - IP Logged

        Despite California's warts and all- one can savor their lottery  win out here knowing that you will only have Uncle Sam to pay and local city taxes depending on where you live. Approve

          maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
          Massachusetts
          United States
          Member #37433
          April 14, 2006
          2747 Posts
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          Posted: October 28, 2014, 2:16 pm - IP Logged

          Yea, anytime I look @ the C/V I automatically say to myself,

          Ok , so a little less then 50% is ...

          Very sobering especially knowing that only about 50 % of the ticket price money goes into the jackpot.

          That money's gone fo ever

            Drenick1's avatar - villiarna
            USA
            United States
            Member #152799
            February 25, 2014
            1090 Posts
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            Posted: October 28, 2014, 3:07 pm - IP Logged

            Very sobering especially knowing that only about 50 % of the ticket price money goes into the jackpot.

            "it makes good sense" according to the Democratic senators pushing the bill. These creeps only care about spending and any means to get the funds is fair game to them.

            N.J. already has the largest lottery state tax and yet these greedy pigs want more.

              Avatar
              California
              United States
              Member #141204
              April 7, 2013
              280 Posts
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              Posted: October 28, 2014, 3:22 pm - IP Logged

              Despite California's warts and all- one can savor their lottery  win out here knowing that you will only have Uncle Sam to pay and local city taxes depending on where you live. Approve

              You're right about that one but that could change at anytime. California is looking for more tax revenue to offset the budget deficits. 

              Taxing lottery winnings might just be what the state coffers need. You can bet the folks at the Franchise Tax Board are chomping at the bit to get even more money from you.

              If CA started taxing lottery winnings, CA would be the worst place in the country to play due to high taxes and the paramutual payouts.

                maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
                Massachusetts
                United States
                Member #37433
                April 14, 2006
                2747 Posts
                Offline
                Posted: October 28, 2014, 3:44 pm - IP Logged

                "it makes good sense" according to the Democratic senators pushing the bill. These creeps only care about spending and any means to get the funds is fair game to them.

                N.J. already has the largest lottery state tax and yet these greedy pigs want more.

                You know what's sad? The people with the power of social media still cannot unite and boycott playing and force the government's to soften its money grab

                That money's gone fo ever

                  Avatar

                  United States
                  Member #149820
                  December 9, 2013
                  644 Posts
                  Offline
                  Posted: October 28, 2014, 5:46 pm - IP Logged

                  Despite California's warts and all- one can savor their lottery  win out here knowing that you will only have Uncle Sam to pay and local city taxes depending on where you live. Approve

                  Ive got friends who just moved here to NC from CA because the state taxes were too high. Is it really 15% state tax out there or is that the sales tax?? Cause either way good God thats high

                    Gleno's avatar - Lottery-001.jpg
                    New Jersey
                    United States
                    Member #80354
                    September 25, 2009
                    705 Posts
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                    Posted: October 28, 2014, 6:18 pm - IP Logged

                    Anyone willing to bet that State Senator Ronald Rice will be re-elected when the time comes for the poor voters to choose for more taxes on the "rich"?

                    Come on, over $600.00 is ridiculous low amount, why not start at $500k?

                    You are no Moron,who sponsored S1767, the poor love that mantra,"Tax the rich"  it gets their vote every time, but they are going to be plenty perturbed when they have to fork over additional taxes on  winnings,under $1,000.00. 

                    Anyone in the NJ State Senate that goes along with this bill should be labeled, "Bloodsuckers" because that is what you are.

                    Mr. Sarlo will no doubt vote for the bill (" He's confident it will pass")  but maybe  he wants to wait until after the election, to avoid  the possible voter's wrath?   

                    Got the same thing going on in the local elections, candidates stating they are going to raise more taxes to pay for their ( unmentioned failing)  educational systems,instead of looking for ways to cut wasteful spending.

                    Anyone who hits it big in N.J. should look to moving to a state that is more tax friendly.

                     

                    Mad

                      Think's avatar - lightbulb
                      Marquette, MI
                      United States
                      Member #20541
                      August 20, 2005
                      705 Posts
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                      Posted: October 28, 2014, 9:14 pm - IP Logged

                      It is totally understandable.  New Jersey is selling too many tickets and they cant handle all those sales so they have to do something to reduce the number of tickets they sell to a more manageable level.  It would work on me...I'd stop buying them.

                        Bondi Junction
                        Australia
                        Member #57242
                        December 24, 2007
                        1102 Posts
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                        Posted: October 29, 2014, 12:16 am - IP Logged

                        Lottery players in NJ should play the Massachusetts lottery instead. You don't have to live in Massachusetts to play.

                        We all get a lot out of lotteries!

                          Avatar
                          Kentucky
                          United States
                          Member #32652
                          February 14, 2006
                          7298 Posts
                          Offline
                          Posted: October 29, 2014, 12:50 am - IP Logged

                          A proposed extra tax on New Jerseyans' lottery winnings stalled today after it became clear it was unlikely to be approved by a key state Senate panel.

                          "It didn't have the votes," said Senate Budget Committee Chairman Paul Sarlo (D-Bergen).

                          The bill (S1767) would impose an additional 0.5 percent tax on lottery winnings of more than $600.

                          The money would be used to fund after school programs run by non-profit groups in municipalities where at least 40 percent of the school district's students are "at risk."

                          New Jersey currently taxes lottery winnings on a sliding scale that peaks at 10.8 percent. On the federal level, the winnings are taxed as ordinary income. The federal rate for income of more than $406,750 for a single person is 39.6 percent.

                          According to 2012 data from the Tax Foundation, New Jersey's top rate for lotto winners is the highest of any state in the nation.

                          The budget committee's endorsement was the next step before the bill was to get a vote in the full state Senate. It was already approved by the Senate's state government committee in May.

                          Sarlo declined to say which committee members opposed the bill, or whether he supported it.

                          "When the bill comes up for a vote, you'll see my vote," he said.

                          The bill's sponsor, state Sen. Ronald Rice (D-Essex), said he believes it will be approved by the committee when he has a chance to talk to members about it.

                          "I'm confident it will pass. With this bill, it makes good sense," he said.

                          The money would be used to fund after school programs run by non-profit groups in municipalities where at least 40 percent of the school district's students are "at risk."

                          I have no idea of what "at risk" means in this context, but it sure looks like non-profit groups want the lottery winners to subsidize their agendas. To me that is like forcing winners to donate to the bill's sponsor favorite charity. And what's worse it only applies to tiny percentage of tax payers and many may live in school districts where less than 40% are "at risk".

                            Coin Toss's avatar - shape barbed.jpg
                            Zeta Reticuli Star System
                            United States
                            Member #30470
                            January 17, 2006
                            10347 Posts
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                            Posted: October 29, 2014, 2:36 am - IP Logged

                            A lot of players in Jersey dodge the bullet by playing with Tony Bag a donuts.

                            Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                            Lep

                            There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.