NJBIA and the Hudson County Chamber of Commerce are joining an appeal of last week’s court ruling that said a Jersey City payroll tax on businesses is constitutional. State lawmakers advanced, and Governor Murphy approved, a bill last summer allowing Jersey City to impose and collect a 1 percent payroll tax. The City Council approved the tax last year, which went into effect on Jan. 1.

“Despite this ruling, we will continue to fight for our member companies in Jersey City and the local business community that are impacted by this tax,” said NJBIA President and CEO Michele Siekerka. “Our job creators will look for other locations as a result of this payroll tax. This tax will also slow the inflow of new jobs to Jersey City.”

Hudson County Chamber of Commerce President and CEO Maria L. Nieves added: “While we are disappointed that this ruling upheld the Jersey City payroll tax, we continue to believe that this tax is misguided and that in the long-term it is detrimental to growth of the local business community. Thus, we support an appeal and the opportunity to revisit this issue.”

The lawsuit, filed in Hudson County Superior Court by the Weiner Law Group on behalf of the Partnership for Jersey City, argues that the special legislation is unlawful because it unconstitutionally favors only one city and interferes with the New Jersey Supreme Court’s Abbott decisions.

The local ordinance also violates numerous constitutional provisions regarding discriminating between residents and nonresidents, taxing other municipalities’ businesses, and more.

NJBIA has been a part of the Partnership for Jersey City since its inception. The partnership includes the Hudson County Chamber of Commerce, an array of labor unions, small and large businesses and other business associations.
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