Legislation signed today by the governor that allows Jersey City to impose a payroll tax will hurt businesses of all sizes and chip away at the city’s competitiveness, said NJBIA Vice President Andrew Musick, who urged city leaders to refrain from imposing the new tax on its businesses.
Gov. Phil Murphy signed the law today giving Jersey City the authority to impose up to a 1 percent payroll tax as part of the state’s overhaul of the school funding formula. The legislation, A-4163, allows municipalities with a population exceeding 200,000 to impose the payroll tax and disperse the proceeds to the school district. The law’s intent is to allow Jersey City to make up for any decreases in state school aid.