N.J.A.C. 18:7-17.5 - Calculation of Tax
(a) The tax to be paid shall be the total of:
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The share of entire net income of the partnership for the privilege period of all nonresident noncorporate partners multiplied by an allocation factor determined pursuant to N.J.S.A. 54:10A-6 and using the partnership's allocation fractions multiplied by the tax rate of .0637; plus
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The share of entire net income of the partnership for the privilege period of all nonresident corporate partners multiplied by an allocation factor determined pursuant to N.J.S.A. 54:10A-6 and using the partnership's allocation fractions multiplied by the tax rate of .09.
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As used in this subsection, the term "entire net income" as applied to partnerships means distributive share of partnership income for Federal purposes plus tax exempt interest income as shown on the Form Federal K-1.
(b) A partnership shall not claim credit or take into account estimated tax payments made by nonresident partners in determining how much tax to pay on behalf of any corporate partner.
(c) For privilege periods ending on and after July 31, 2023, if a member of a combined group receives income from the unitary business from a partnership, then the combined group's entire net income shall include the member's direct and indirect distributive share of the partnership's unitary business income, and the unitary partnership shall not be liable for the portion of the payment imposed pursuant to N.J.S.A. 54:10A-15.11 that is directly, or indirectly in the case of a tiered partnership, attributable to that member.