Restricts authority to terminate reciprocal personal income tax agreements with other states.

This bill (A2761) requires New Jersey's Division of Taxation to obtain new state legislation - approved by both the legislature and governor - to terminate reciprocal tax agreements with other states. Previously, the director could end such agreements without new laws, but this bill restricts that authority. The key provision amends N.J.S.54A:9-7 to state that agreements "shall not be terminated unless the termination is by enactment of a law directing the director." It applies to all existing and future reciprocal tax agreements, including those dating back to 1977. The bill takes effect immediately and is retroactive to the start of New Jersey's first such agreement with Pennsylvania.