As a head's-up to all New Jersey investment clubs -- Gov.
McGreevey just signed P.L.2002, c.40 into law. Among its
provisions is a change in the rules for NJ partnerships.

Partnerships which derive income from NJ sources are subject
to an annual fee of $150 per partner.

NAIC is reviewing the legislation and will report its
interpretation to its NJ members.

The key question is whether investment income is considered
"income from NJ sources."

It's also possible (I'm not skilled enough to interpret all
of what I read in the legislative text) that NJ investment
clubs with out-of-state partners may be required to pre-pay
income taxes on behalf of the non-resident partners. (The
concept is that NJ gets the money upfront, and the
non-resident partner has to file a NJ non-resident tax
return to claim the refund.)

If anyone has the expertise to unravel this, the text of the
legislation can be found at the NJ Legislature web site:

www.njleg.state.nj.us

At the site, search for A2501 or S1556 and follow the links
to the full text.

Ira Smilovitz