Lawmakers Pass "Disappointing" State Budget

 – July 1, 2024
Lawmakers Pass "Disappointing" State Budget

On June 28, New Jersey lawmakers passed a $56.7 billion budget that, in effect, reinstates the 2.5% corporate business tax (CBT) surcharge that sunset on Jan. 1. 

The new tax, called the Corporate Transit Fee (CTF), is a 2.5% tax on corporations with profits over $10 million, affecting about 600 corporations and giving New Jersey the highest CBT in the nation. The tax is retroactive to Jan. 1, 2024.

The NJCPA lobbied against the tax, warning that it would hurt the economy, the job market and smaller businesses that do business with these companies. 

Another area of concern is the budget’s $2 billion structural gap that relies on drawing down money from the state’s surplus. 

Here are some highlights: 

  • $56.7 billion in spending, which is $2.3 billion higher than the previous budget 
  • 2.5% tax hike on corporations with over $10 million in profits. It sunsets after five years. The CTF is intended to shore up a $1 billion funding gap at NJ Transit. 
  • $7 billion to fully fund the state’s public worker pension system obligation 
  • $12 billion for schools, which will fully fund the state’s school funding formula for the first time ever
  • More than $2 billion for the ANCHOR property tax relief program and sets aside $220 million for the StayNJ property tax relief program, which has not gone into effect yet

To learn more about the budget: