Assemblyman Christopher P. DePhillips, a critic of the Corporate Transit Fee, introduced legislation this week to rescind that 2.5% surcharge levied on about 600 New Jersey businesses and reiterated his call for a top-to-bottom audit of NJ TRANSIT.
“Governor Murphy's administration has a notorious habit of raising taxes on corporations, breaking commitments to the business community, and relying on commuters to pay more to fund NJ TRANSIT without first looking for inefficiencies and rooting out waste,” DePhillips (R-40) said on Thursday. “The driving force for this legislation, and my other proposals to lower corporate taxes and fares, is to cut the cost of living and doing business in New Jersey.”
The Corporate Transit Fee applies to businesses with net income over $10 million and imposes a 2.5% surtax. The combined Corporation Business Tax base rate (9%) and Corporate Transit Fee surtax (2.5%) equal 11.5%, which is the highest corporate tax in the nation.
The Corporate Transit Fee was enacted in June 2024 and was retroactive to Jan. 1, 2024. All revenue generated from the surcharge supports NJ TRANSIT operating expenses, and the state’s share of matching funds required to receive federal aid for transit capital projects. The fee is scheduled to sunset on Dec. 31, 2028, but DePhillips’ bill would repeal it immediately.
"While neighboring states are realizing the benefits of lowering their corporate taxes, it's imperative New Jersey does the same to support a competitive business climate and a healthy economy," DePhillips said.
In addition to the bill DePhillips introduced on Monday to eliminate the corporate transit fee (A-6007), he is also the sponsor of (A-1331) to gradually lower the state's corporate business tax to 2.5% in four years – making it one of the lowest rates in the country.
"After increasing state spending over 60%, the Murphy administration shouldn't burden businesses and riders with the highest costs in the nation,” DePhillips said. “They are already paying too much for too little accountability and reliability."
NJ TRANSIT’s operating budget also includes automatic annual 3% fare increases that started in July 2025 on top of the 15% hike that took effect on July 1, 2024, DePhillips pointed out. In April he introduced a bill (A-5569) to shield commuters from the fair increase, but that legislation has not been heard yet by the Assembly Transportation and Independent Authorities Committee.
