Legislation allowing municipalities with populations over 200,000, specifically Jersey City, to impose a 1 percent employer payroll tax would add yet another expense to businesses already facing a host of costly mandates in the highest taxed state in the nation, the New Jersey Business & Industry Association (NJBIA) said today.
Following today’s Senate Budget and Appropriations Committee, Andrew Musick, NJBIA Vice President, Government Affairs, said the proposed legislation (S-2581) would have a negative impact on businesses and NJBIA members that call Jersey City home.
“This tax proposal would place an additional burden on businesses of all sizes and increase their cost of doing business,” Musick said. “Many companies have been courted by Jersey City and have made significant capital investments, including adding employees, due to the lower cost structure compared with New York City.
“This additional tax would add to the already high property taxes, new labor mandates and energy mandates passed over the last few months. The cumulative impact of all these new regulations, as well as the tax increases contained in the FY2019 Budget Proposal, will further impact the competitiveness of Jersey City.”