Lawmakers advance new business surtax aimed at funding NJ Transit
by Sophie Nieto-Munoz, NJ Monitor
27 June 2024
NJ Transit is one step closer to a dedicated funding source after lawmakers advanced a new surtax on the state’s most profitable businesses Wednesday.
The 2.5% surtax — called the corporate transit fee — would apply to businesses with more than $10 million in profit. It would affect roughly 600 businesses, is expected to generate about $1 billion in its first year, and would sunset after five years.
Supporters say the new tax is needed as a revenue source for NJ Transit, which faces a $766.8 million budget hole next year. But it has angered the business community, which says it would make New Jersey less friendly for businesses.
“Today we sit here ready to make New Jersey stand out as an outlier in corporate business tax, not just the largest in the nation, but the largest by far,” said Michele Siekerka of the New Jersey Business and Industry Association.