NJ Tax Court Sides With Lotto Winners In Income Tax Fight

Law360, New York (September 27, 2016, 6:00 PM EDT) -- A New Jersey tax court judge on Monday ruled the state cannot tax annuity payments of a man's $46 million lottery winnings, finding that although a 2009 law allows for gross income taxes on lottery prizes, the state had to live up to its past advertisements of tax-free winnings.

Melvin Milligan had sought refunds of income taxes applied to annuity payments of his lottery winnings for the tax years of 2009 through 2013. He and his wife, Kim Lawton-Milligan, had argued a statute adopted in June 2009 that reversed New Jersey's decadeslong policy of not imposing state gross income tax on...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!