Accountants say leaving New Jersey will save you money, survey finds

The seaside at Wildwood, New Jersey, on the Jersey Shore on May 27, 2021.

Spencer Platt | Getty Images

Certified public accountants have a message for New Jersey-based purchasers: It’s time to maneuver to a lower-cost state.

That’s in response to a latest survey from the New Jersey Society of CPAs, which discovered that 70% of pros surveyed who’ve purchasers within the state have suggested them to maneuver as a result of excessive value of dwelling.

Meanwhile, 53% of accountants surveyed mentioned they’ve informed enterprise purchasers within the Garden State to relocate as a result of excessive value of doing enterprise.

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The cause CPAs prod their purchasers to maneuver comes right down to their fiduciary obligation to provide good recommendation, mentioned Ralph Thomas, CEO and government director at NJCPA.

There’s another excuse they’re having these conversations: taxes.

“The tax structure here is one of the highest in the country, if not the highest, and that certainly is a negative issue for individuals and for businesses,” Thomas mentioned.

High property taxes and company tax charges have been cited as high issues among the many CPAs surveyed.

For companies, high issues cited embody lack of expert personnel, regulatory necessities and home financial circumstances.

NJCPA offers knowledge and data to encourage the state to streamline its authorities.

The group has completed work to handle the fuel and property taxes. Among the present priorities on its agenda is the inheritance tax, Thomas mentioned, which may very well be streamlined to be extra equitable.

The survey discovered that CPAs are seeing extra high-income purchasers go away the state. About 60% mentioned they’ve seen extra high-income purchasers file as New Jersey non-residents. At the identical time, about 70% of CPAs mentioned they noticed a lower within the variety of high-income purchasers who’ve state residency.

Popular areas for relocation embody states the place the price of dwelling and taxes are cheaper, Thomas mentioned, resembling Delaware, Pennsylvania, Florida, North Carolina, South Carolina, Tennessee and Texas.

The accountants have been extra pessimistic concerning the financial outlook for New Jersey for the remainder of 2021 in comparison with the general U.S.

The survey discovered that 37% mentioned New Jersey will fare worse in the remainder of the yr, versus 30% who mentioned the identical for the U.S. Meanwhile, 35% mentioned New Jersey’s financial circumstances will be higher in the remainder of 2021, versus 43% who mentioned the identical for the U.S.

NJCPA’s survey, which was sponsored by Provident Bank, was performed in May and included 440 licensed public accountants.

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