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Jersey City Payroll Tax Dispute Renewed By N.J. Appeals Court

Feb. 17, 2021, 8:58 PM

Mack-Cali Realty Corp., a real estate investment trust, and other construction and developer entities could potentially skirt a Jersey City payroll tax for nonresident employees in New Jersey.

In an opinion Tuesday, the Superior Court of New Jersey’s Appellate Division vacated and returned a decision by a lower court that had dismissed a challenge made by Mack-Cali, labor unions, and others that a 1% payroll tax violated the U.S. Constitution.

Instead, the panel with judges Richard Hoffman, Carmen Messano, and Karen Suter said the Jersey City payroll tax that became effective in 2019 could be a violation of the...

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