Lawmakers will return to Trenton on Saturday for a rare weekend voting session amid hopes for finding a way out of the budget impasse between legislative leaders and the governor. If they cannot come to an agreement by Sunday morning, New Jersey will endure its second government shutdown in as many years.
While the two sides largely agree on spending priorities, they have been at odds over which taxes to increase.
NJBIA has opposed all tax increases, arguing that New Jersey businesses are already over-taxed. This afternoon, NJBIA President and CEO Michele N. Siekerka, Esq. released the following statement:
“Negotiations are clearly headed in the wrong direction. Instead of focusing on New Jersey’s economic competitiveness and jobs, the Legislature is now poised to possibly vote on even more tax increases.
“Lengthening the CBT surcharge to four years, extending the sales tax to include vacation rental homes and doubling the realty transfer fee will make New Jersey less affordable and less competitive.
“The budget approved by the Legislature on June 21 would give New Jersey the highest corporation business (CBT) tax in the nation: 13 percent for companies with more than $25 million in income and 11.5 percent for companies with more than $1 million in income. Yesterday, the situation went from bad to worse when legislators proposed an additional $360 million in tax increases by changing the two-year sunset provision in the CBT hike to four years, expanding the sales tax to include vacation rental homes at the shore, and doubling the realty transfer tax on sales of properties over $1 million.
“Extending New Jersey’s 6.625 percent sales tax to shore vacation homes and other short-term rentals would make New Jersey an outlier in our region and hurt the tourism economy that has just started to recover after Superstorm Sandy. Similarly, the proposed realty transfer fee of 2 percent on properties over $1 million would also give New Jersey the highest realty transfer tax in the region – exceeding even New York where the fee for properties over $1 million is 0.4 percent to 1.4 percent.
“NJBIA has long maintained that New Jersey has a spending problem, not a revenue problem. Proposals such as the millionaires tax and CBT surcharge try to balance the budget on the backs of job-creators and will only make New Jersey less competitive and more unaffordable.”
What is there to comment on.
One of the most corrupt States in the country. Really time to impeach This governor !!
Like I have heard before Last one to leave this state turn the lights out please.
No talks of economizing, no talks of department audits, no talks of making this state affordable. Instead we have direct tax increases or new business taxes (which becomes an indirect tax increase). Keep voting Democrat folks. You earned this one.
I would like to know who are the idiots that vote for these Democrates.
Democrates = tax increases all the time.
When there are no more business in NJ thank the Democrates. Couple more years and I’m out of here.
It’s spelled “Democrat”
Let the government shut down. That will point out all the things we don’t need. Then come back up slowly and only turn on essential services. If it was only that easy! I agree with Richard. Who votes for these jerks? I’m done too.
The shutdown is a lot of bull. The state employees were paid afterwards anyways for the days they were off from the shut down last year. Preparing to move soon…
Taxes have already slowed my investment in our 60+ year old small family business. New tax increases will now start the wheel spinning on cutting peoples jobs and the process of looking to move 20 minutes over the NJ border. Why continually take more from the people who are giving and creating jobs, that help create more tax revenue for the state. Makes NO SENESE!
All you business owners who have worked hard and have endured the years of NJ unrestrained spending and taxing. Congratulations you are the most skillful business people in the world! Unfortunately our business and properties will be under valued because of the State of despair [NJ] we are located in.
I’m Done. Out of this state ASAP
What happened with the $.23 gas hike with the reduction in the sales tax? Now, where’s the accounting of that gas increase? Back to 7% sales tax we go!! We just can’t win. Yes, let’s have audits like other big companies endure – find ways to cut back spending. Isn’t that the prudent approach – one that most people do in order to make ends meet. This is just getting more and more ridiculous and Murphy is just making it worse. Why not look at the people using the social services to get low cost housing, reimbursement for health benefits, etc. They have children with their significant other but never get married so they appear as a single parent and get all these benefits. Highway robbery!! No accountability by the State. Wouldn’t it be great to have the every day person tap into an endless pool of $$$ (taxes) and spend, spend, spend without any accountability. I’m really so done……..it’s beyond frustrating.
Coming back from sandy,s lost everything, have to refinance my house to 100 value, to continue, not there,yet. Now more taxes this state is getting ridiculous, the governor do not like business. Is going to put a lot of them out of business.