New Jersey's government is bad for business, especially since the Democrats took over.
In today's mail I received a REFUND/CREDIT NOTICE for my Corporation Business Tax from the Division of Taxation. It agrees with my tax return with the exception of the fact that the state is paying me $29.25 in interest on the amount of my refund. I'm sure I will pay that money in other taxes or fees.
What was not included in the mail was a check. The notice said that the interest has been calculated until September 15, 2007. I guess I'll get my check in September.
My company's fiscal year ends in September, which made my tax returns due in January. My accountant always requests an extension, so the return was actually due in July. We submitted in early, in May, along with Federal returns and State returns for several other states. I had a refund from Pennsylvania in early June.
So the state went to the expense of verifying the accuracy of my return and spent money sending the notice, and will spend more money sending the check in September.
What really burns me about this is why I'm due a refund from NJ at all. Due to the McGreevey/Codey/Roberts business tax increases in 2005 I was socked with an unexpected tax bill of $10,000. With my extension application for the 2006 return I sent 1/2 the previous years tax. As it turned out, I only owed $800 for 2006.
NJ is using $4,200 of my money and paying me $29.52 interest for 9 months. I really could have used that money this month...to help pay my quarterly property taxes.