As discussed here, earlier this year, the Appellate Division affirmed in part and reversed in part the Law Division’s dismissal of a case that challenged an ordinance of the City of Jersey City that imposed a 1% tax on employers’ payrolls but exempted from the calculation of the tax employees who resided in Jersey City. The Appellate Division remanded the case for further proceedings. However, the panel stayed its ruling for 45 days “to permit the parties to seek further review.” It thus came as no shock that review was then sought.
The Supreme Court announced this week that it has granted review in this case. The question presented, as phrased by the Supreme Court Clerk’s office, is “Did the ‘residency exemption’ in Jersey City’s payroll tax violate the Commerce Clause of the United States Constitution?”