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Income Taxes
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company follows FASB ASC Topic 740, “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return.  ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes.  

On July 1, 2018, New Jersey's Assembly Bill 4202 was signed into law. Assembly Bill 4202, effective January 1, 2018, imposed a temporary surtax on corporations earning New Jersey allocated income in excess of $1 million at a rate of 2.5 percent for tax years beginning on or after January 1, 2018, through December 31, 2019, and at 1.5 percent for tax years beginning on or after January 1, 2020, through December 31, 2021. In addition, effective for periods on or after January 1, 2019, New Jersey is adopting mandatory unitary combined reporting for its Corporation Business Tax.

For the quarter ended June 30, 2019, the Company reported income tax expense of $1.6 million for an effective tax rate of 22.0 percent, compared to an income tax expense of $1.4 million and an effective tax rate of 20.0 percent for the prior year’s quarter. For the six months ended June 30, 2019, the Company reported income tax expense of $3.2 million for an effective tax rate of 21.5 percent, compared to an income tax expense of $2.6 million and an effective tax rate of 19.6 percent for the six months ended June 30, 2018. The Company did not recognize or accrue any interest or penalties related to income taxes during the three or six months ended June 30, 2019 or 2018.  The Company did not have an accrual for uncertain tax positions as of June 30, 2019 or December 31, 2018, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.  Tax returns for all years 2014 and thereafter are subject to future examination by tax authorities.