Last year, Gov. Phil Murphy and the state legislature enacted the Corporate Transit Fee, a 2.5 percent surcharge on the corporation business tax for companies with over $10 million in annual revenue. This came on top of the existing 9 percent CBT rate, instantly making New Jersey’s business tax environment one of the least competitive in the country.

As the largest and most influential business organization in South Jersey, the Chamber of Commerce Southern New Jersey opposed this measure. Yet as more details emerged, it became clear that revenue from the new tax would be dedicated to supporting NJ Transit, an agency facing well-documented operational and fiscal challenges.

The CCSNJ supports the principle of dedicated funding for NJ Transit and agrees that reliable public transportation is essential to economic mobility and statewide growth. But our opposition to the Corporate Transit Fee rested more on a fundamental issue of fairness: South Jersey businesses are being taxed to fund transportation services their employees cannot access.

The Corporate Transit Fee, which took effect retroactively to Jan. 1, 2024, has generated approximately $815.5 million, which is $49.5 million more than NJ Transit’s stated $766 million need for Fiscal Year 2026. Based on our estimates, South Jersey businesses contributed approximately 15 percent of that revenue. Yet, they continue to receive little to no benefit from the services the fee is funding.

That must change.

CCSNJ is calling on state leaders to dedicate a mere $15 million of the Corporate Transit Fee’s surplus to transportation initiatives that will directly benefit South Jersey residents, workers and employers.

Our proposed investment plan includes:

• New bus routes that serve high demand “eds and meds” corridors from Cape May County to Camden County, without duplicating existing NJ TRANSIT lines.
• Targeted funding for improvements to the NJ Transit River LINE in Burlington and Camden Counties, including improved passenger communications systems, such as speakers and passenger information displays.
• Expansion of the Camden Loop, a micro-transit/rideshare system connecting key employment, education, and health care sites within the City of Camden.
• An education campaign to encourage South Jersey residents to embrace the long-awaited Glassboro-Camden Rail Line.

This is not a request for a handout. It is a call for equity.

If we are truly to move toward a statewide transit solution, funding must reflect both need and fairness. That begins with ensuring South Jersey businesses and their employees see a return on the investment they are now required to make.

We urge the governor and Legislature to ensure that transportation funding is not just dedicated to South Jersey, but equitably distributed, in the FY2026 state budget and beyond.

Christina Renna is the CEO of the Chamber of Commerce Southern New Jersey.