On Tuesday, March 6, Senate President Sweeney announced that he would introduce legislation imposing a 3% surcharge on the Corporation Business Tax (CBT) for companies earning over $1 million in net income. The proposal, which would increase the top rate on New Jersey’s CBT from 9 percent to 12 percent, is estimated to generate $657 million. As noted in the press release, this proposal is in response to changes under the recently enacted federal tax reform plan.
The Senate President added that his goal is to utilize those revenues to help overhaul school funding by increasing aid to underfunded districts, expanding preschool programs and fully funding the state share of special education.
NJBIA is concerned about the impact this tax increase, along with the Governor’s proposal for a millionaires tax, would have on businesses in New Jersey, as it would make an already challenging tax climate even more uncompetitive and our state less affordable. We are in the process of gathering information from our members about the impacts that this proposal would have on their businesses. Please reach out to me directly with any comments or feedback you may have regarding the impact of the proposal on your company.
For a copy of the joint statement issued by NJBIA and the NJ Chamber of Commerce, please click here.
For more information on the proposal, please click here.