NJBIA Vice President of Government Affairs Andrew Musick issued the following statement today regarding Governor Murphy’s signing of A-4163, which allows municipalities with populations over 200,000 to impose up to a 1 percent employer payroll tax. Currently, Newark is the only municipality that imposes and collects an employer payroll tax, and this law allows Jersey City to do the same.
“We’re disappointed by this new tax as it places additional burdens on businesses of all sizes in Jersey City. It will add to the cumulative impact on business, when combining it with the Corporate Business Tax surcharge and increased income tax rate on job creators as part of the new state budget, as well as new and forthcoming labor and energy mandates.
“These aggregate costs will impact employers in Jersey City. Many companies courted by Jersey City have made significant capital investments, including adding employees, due to the lower cost structure compared with New York City. This payroll tax will effectively chip away at the competitive advantage Jersey City has established. NJBIA encourages city leaders to not impose this employer payroll tax.”