On June 28, Governor Murphy signed the $56.6 billion FY2025 budget, the largest in state history.

Signed along with the budget was A4704/S3513, which imposes a 2.5 percent corporate transit fee on businesses with a net income in excess of $10 million. The tax is retroactive to January 1, 2024, and is set to sunset after five years rather than as a permanent tax, which Governor Murphy proposed in his Budget Address. The CCSNJ has vehemently opposed this proposal that unfairly taxes South Jersey-based businesses for NJ Transit rail and bus services they have limited access to. By approving this proposal, the Corporate Business Tax (CBT) rate will rise to 11.5 percent making New Jersey the state with the highest CBT rate in the nation, yet again.

Included in the budget bill is funding to maintain ANCHOR property tax relief benefits at their current levels, although businesses were once again excluded from the program. Removed from the Governor's initial proposal was a proposed $1 “truck traffic excise fee” that would have been imposed on warehouses throughout New Jersey based on the number of truck departures in and out of facilities.

During the Senate vote, Senate Budget Chair Sarlo acknowledged that the state must do better by South Jersey when it comes to access to NJ Transit.

CCSNJ President and CEO Christina Renna released the following statement on the signing of the State Budget:

"The FY2025 $56.6 billion budget that Governor Murphy signs today realizes what the CCSNJ has long feared, it raises taxes on the overburdened residents and businesses of the state. The CCSNJ has warned for years that the unsustainable year-over-year increases in spending will inevitably lead to an increase in taxes at a time when residents and businesses alike can least afford it. 

Most objectionable is the imposition of the 2.5 percent Corporate Transit Fee. South Jersey, as the region has long been and remains a transit desert, with little to no access to public transit. Policymakers are taxing South Jersey-based businesses for public services they desperately want and need but have limited access to.

This budget makes New Jersey less competitive compared to our neighbors in Delaware and Pennsylvania. South Jersey has already seen two confirmations of companies leaving the state, one of which is moving across the river to Pennsylvania, and we are concerned that this trend will continue with the passage of this budget and Corporate Transit Fee.

The CCSNJ stands ready to work with the legislature to ensure that South Jersey receives its fair share of investment from the corporate business tax."

The FY2025 budget passed by a vote the following vote in the Assembly of 55-22 in the Assembly and 27-13 in the Senate.

A4704/S3513 passed by a vote of 41-31 in the Assembly and 22-15 in the Senate. The roll call of the vote can be found below.

To read the CCSNJ’s testimony on the FY2025 state budget, please click here.