On September 11, the CCSNJ submitted testimony to the Legislature on the Governor's Revised FY2021 Budget. Due to the COVID-19 pandemic the Assembly and Senate Budget Committees did not take testimony in person, accepting only written testimony.
In the CCSNJ's testimony, we argued that the continued call for new taxes and additional spending in this budget is no longer sensible in this climate and it is more urgent than ever to address the affordability issues facing the state. The revised FY2021 $40.07 billion budget does not propose enough cuts to spending, but rather introduces more expensive programs, while placing the burden on already struggling businesses. The CCSNJ was disappointed to hear the Governor again irresponsibly propose a $1 billion increase in taxes on businesses and residents of New Jersey.
The CCSNJ expressed our opposition to the so called "millionaires tax" which would increase the rate of taxation on incomes in excess of $1 million from the current rate of 8.97 percent to 10.75 percent, which is expected to raise $390.0 million in FY2021.
The revised FY2021 budget proposes increasing the sales tax on boats back to 7%, from its current level of 3.5%, and eliminating the $20,000 cap on how much tax any boat buyer would pay. This tax will hit South Jersey particularly hard where it is doubtless that business will move to Delaware, where there a 0% sales tax.
In addition to these tax increases, the Governor further proposes an increase in the cigarette tax to $4.35, levying new assessments on opioid drug manufacturers and distributors, extending sales tax to limousine services, and a 5 percent surcharge to individuals with incomes over $1 million with federally qualified business income (QBI), among others.
The CCSNJ again opposed the proposed $4 billion in borrowing. This proposed borrowing amount must first be approved by the Legislative Select Commission on Emergency COVID-19 Borrowing.
To read the CCSNJ Revised FY2021 State Budget testimony, click here.
If you have any questions, please contact Hilary Chebra, Manager of Government Affairs at hchebra@chambersnj.com.
