By Matthew Fazelpoor, NJ Business, March 25, 2024
With the budget season in full swing, a coalition of more than 100 businesses, labor, and nonprofit groups penned a letter to the Legislature urging lawmakers to oppose the proposed 2.5% Corporate Transit Fee (CTF) on the state’s most profitable corporations as well as a Warehouse Fee.
The issue has been at the center of New Jersey news and politics since Gov. Phil Murphy’s February Budget Address. He proposed the controversial taxes at that time, right on the heels of the Corporate Business Tax (CBT) surcharge’s sunset. That led to immediate backlash from the business community, as NJBIZ has reported.
“As leaders of our state’s major business associations covering sectors and regions throughout the Garden State, the New Jersey Business Coalition (NJBC) broadly representing the state’s diverse business community strongly urges you to oppose Gov. Murphy’s proposed billion-dollar business tax increase and new Warehouse Fee tax increase within his FY25 state budget proposal that are unnecessary and will do significant harm to New Jersey’s overall business climate,” the NJBC wrote.
The coalition says the actions would further hurt New Jersey’s economic competitiveness in creating and attracting both jobs and capital.
“Because corporations can pick and choose their investment locations based upon where they get the best return on investment,” the letter continues, pointing to Pennsylvania, which is cutting its corporate tax rate.
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