Why is the new law bad luck for the NJ Lottery winners?
The limits of luck are becoming clear to Lynn Sellari, whose Cash 5 lottery ticket left her with a windfall of money in May. Over the past few days, Sellari and hundreds of other recent lottery winners — including 10 Chubb Insurance workers who scored one of the state’s largest jackpots among them — have learned about a little-mentioned detail tucked within a package of new taxes lawmakers created to help relieve the state’s budget troubles. Along with liquor, cigarettes and wine, New Jersey will begin taxing lottery winnings to generate revenue to help the cash-strapped government, with a maximum rate of almost 11 percent. The law took effect July 1, but there’s a special provision when it comes to the lottery: It taxes winners going back to the start of the year.
