Murphy v. Taxation Division Director

ANDREW, J.T.C.

In these three state tax actions consolidated for decision, plaintiffs Vincent B. Murphy, Jr. and Patricia Murphy (Murphys), Henry Kaufman and Elaine C. Kaufman (Kaufmans), and Jason M. Elsas, Jr. and Patricia Elsas (Elsases), all New Jersey residents, seek a refund of taxes assessed against them for the tax year 1975 by defendant Director of the Division of Taxation, pursuant to the New Jersey Tax on Capital Gains and Other Unearned Income Act, N.J.S.A. 54:8B-1 et seq. (the act), since repealed.1

While in effect, the tax in issue was imposed upon “unearned income” which was…