Lawmakers of New Jersey are poised to approve a proposed corporate income tax rate increase for the state’s largest companies. New Jersey Governor Phil Murphy proposed the increase, intending to use the increased tax revenue to fund the state’s financially strapped public transportation system.
This proposal, presented earlier this year, would add a 2.5% fee to New Jersey’s existing 9% corporate tax rate on businesses with annual profits of over USD 10 million. As such, this 2.5% fee will increase the state’s highest corporate tax rate to 11.5%.
The proposed corporate tax increase is estimated to impact close to 700 companies within New Jersey.
The Democratic-controlled Legislature leaders have agreed to include Governor Murphy’s proposal for corporate transit fee in the state budget, which is due by 30 June, 2024.
