Heather Hansberry Executive Assistant to the President & CEO | New Jersey Business & Industry Association
+ Commerce
B. B. Urness | Feb 11, 2025

NJBIA urges full allocation of Corporate Transit Tax revenues to NJ TRANSIT

With Governor Phil Murphy's FY26 budget address on the horizon, the New Jersey Business & Industry Association (NJBIA) is advocating for the full allocation of a $1 billion Corporate Transit Tax to NJ TRANSIT. This tax is imposed on some of New Jersey's largest employers.

In an op-ed published in the Bergen Record and USA TODAY Network, Michele Siekerka, President and CEO of NJBIA, emphasized that the business community expects Governor Murphy to fulfill his previous commitment to provide dedicated funding for NJ TRANSIT. "It is now incumbent upon Governor Murphy and our Legislature to specifically direct these funds to the corporate transit tax as part of the FY26 budget," Siekerka wrote.

The governor's earlier decision to maintain a high corporate business tax rate has made New Jersey less competitive. Siekerka urged that all proceeds from the corporate transit tax should be used for NJ TRANSIT, aligning with Murphy's focus on solving related issues.

Siekerka highlighted concerns about New Jersey's fiscal situation, pointing out that state spending has increased by 63% since 2017. She noted that there are insufficient funds for a $56 billion operating budget and uncertainty about achieving a balanced budget.

Siekerka also mentioned previous calls for using these funds for other programs like Stay NJ property tax relief. Such actions would contradict Governor Murphy's earlier statement against raising taxes for this purpose: "it’s kind of crazy to raise taxes to deliver tax relief."

She further criticized New Jersey's history of diverting dedicated funds intended for specific purposes like debt defeasance or clean energy initiatives.

Last year's $1 billion tax was applied retroactively and placed in surplus. Siekerka concluded by urging state leadership to ensure this new tax supports its intended goal: "New Jersey’s business community and largest job creators don’t need any more surprises."

Organizations in this story

Trending