Gov. Murphy proposes taxing wealthy NJ businesses to benefit NJ Transit

Gov. Murphy proposes taxing wealthy NJ businesses to benefit NJ Transit

TRENTON, N.J. (PIX11) — Lifting NJ Transit out of a crisis — that’s what Gov. Phil Murphy touted his administration has been doing during his budget address.

“We had a debilitating shortage of engineers, conductors, and bus operators,” said Murphy during Tuesday’s budget address. “Riders and commuters were being stranded due to chronic delays and last-minute cancellations.”

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In his new proposal, he called the Corporate Transit Fee, businesses that make more than $10 million would be taxed, with the money being put toward NJ Transit’s future.

“We will raise this revenue without any new burdens on small and medium-sized businesses,” said Murphy.

New Jersey Transit President and CEO Kevin Corbett said in a statement:

“We are grateful that the Governor has prioritized creating a consistent, additional dedicated funding source for NJ TRANSIT.  Transit is a lifeline for the many New Jerseyans who rely on these services for getting to work, school, or medical and other appointments.  Maintaining these critical services is vital to the region’s economy, particularly as we, and many other transit agencies around the country, continue to recover from the pandemic.  The Governor’s commitment will ensure the vitality of our transportation system and build upon the progress we have made to improve reliability and safety while improving accessibility, and fostering growth in communities across the state. We thank the Governor for his leadership and vision in prioritizing this critical investment.”

The proposed Corporate Transit Fee is meeting staunch opposition both inside and outside the State House.

Republican Assemblyman Christopher DePhillips says he and some other Republicans would rather see the State dip into the budget’s $6 billion surplus. “It’s called a rainy day fund,” said DePhillips. “This is more than a rainy day for New Jersey Transit, this is a stormy day.”

Republican Senate Budget Officer Declan O’Scanlon thinks the budget can be reworked so that businesses wouldn’t have to be taxed. “It’s a bad idea from a messaging standpoint and it’s a bad idea from a policy standpoint,” said O’Scanlon.

New Jersey Chamber of Commerce President Thomas Bracken calls it a ‘nightmare’ scenario. “It sends the wrong signal to the rest of the country,” said Bracken. “We’re trying to attract businesses to New Jersey and trying to keep businesses in New Jersey.”

Many see the proposed fee as a new version of the state’s Corporate Businesses Tax, which lasted for several years and expired in December.

One key difference, however, is that tax was for businesses that made $1 million in profit, rather than $10 million.

The budget is due June 30, right at the start of the new Fiscal Year.

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