During his FY 2025 Budget Address on Tuesday, February 27, Governor Murphy unveiled a proposal for a Corporate Transit Fee (CTF). This new fee targets corporations with incomes over $10 million, affecting around 600 of the most profitable entities under the Corporate Business Tax (CBT) framework. The aim is to secure dedicated funding for NJ TRANSIT's commuter network. The CTF is projected to raise $1 billion in Fiscal Year 2025, with future annual revenues expected to fall between $800 million and $900 million.
The introduction of the CTF comes in response to anticipated budget shortfalls due to declining CBT revenues, which are projected to drop by $771.3 million or 15 percent from FY 2024, totaling nearly $4.4 billion in FY 2025. This decrease is primarily due to the full impact of the expiration of the CBT surtax, which is estimated to reduce revenues by $800 million from the previous fiscal year.
The League will continue to provide updates as budget sessions progress.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.