NJBIA President and CEO Michele Siekerka issued the following statement regarding Gov. Phil Murphy’s proposed FY 2024 budget today.
“NJBIA applauds Governor Murphy for announcing the sunset of the 2.5% Corporation Business Tax surcharge. It is the right thing to do.
“New Jersey has been a national outlier in this space for far too long, which has put our largest employers at a competitive disadvantage. And while this surcharge was always supposed to be temporary, we recognize the sunset of a tax is never a given. So, it is appreciated.
“As New Jersey will still have the fourth highest CBT rate in the nation and highest in the region without the surcharge, and with neighboring states like Pennsylvania on a path to cut its rate to 4.99%, we do believe a long-term, comprehensive plan to further reduce our CBT is an appropriate discussion worth having and something we will continue to strongly advocate for.
“We also welcome the introduction of a state budget that commits to a full pension payment for a third straight year, as well as another solid contribution to debt defeasance. Another year of increased school aid is a positive step for property taxes and workforce development. Other investments in workforce development, infrastructure and innovation are all good things serving as stimulative spending to galvanize New Jersey’s overall economy.
“While the proposed budget does aim for affordability, we do believe more can and should be done to address affordability for small- and mid-sized businesses. As an example, the extension of the ANCHOR property tax program – which is helpful to residents and renters – again excludes businesses which pay nearly half of New Jersey’s property taxes.
“We also continue to seek unemployment insurance tax relief for our small businesses. On July 1, those employers will be hit with another $300 million-plus payroll tax increase for a third straight year – part of a nearly $1 billion tax increase overall.
“Given that the UI fund depletion was the result of COVID closures and no federal COVID relief has been provided to these businesses, given the strong support for UI relief on both sides of the legislative aisle, and given New Jersey’s large surplus, we believe the Governor should do what is right and provide at least some relief to what he himself has called the lifeblood of our economy.
“NJBIA looks forward to working with Governor Murphy and the Legislature to ensure the temporary CBT surtax sunsets per statute, that no new taxes and fees remain as proposed, and to work on further ways to make New Jersey businesses more competitive.”