Imposes CBT surtax at rate of 2.5 percent until December 31, 2025 and requires amount collected from surtax be dedicated to specific purposes.
Impact
The implications of A4009 are significant for New Jersey's tax landscape and fiscal management. By extending the surtax, the state anticipates a continued flow of revenue that will support essential services, particularly in public transit and education, which are critical areas of public sector investment. The legislation highlights a commitment to improving infrastructure and educational outcomes, aiming to address the financial pressures faced by public agencies. However, businesses, especially those near the surtax threshold, may express concern regarding the continuation of this additional tax burden, which can impact their profitability and operational decisions.
Summary
Assembly Bill A4009 seeks to extend the existing corporation business tax (CBT) surtax, imposing a rate of 2.5% on businesses with allocated taxable net income exceeding $1 million. Originally set to expire on December 31, 2023, this bill would extend the surtax until December 31, 2025. The additional revenue generated from this surtax is earmarked specifically for public transportation services and projects, funding for the state's public education system, and health benefits reimbursements for state employees. By establishing the Statewide Public Transportation, Public Education, and Public Employee Health Benefits Improvement Account, the bill aims to ensure that these funds are allocated effectively and transparently.
Contention
Potential points of contention surrounding A4009 will likely focus on the balance between necessary public funding and the economic burden placed on businesses. While proponents argue that the surtax is a vital mechanism for enhancing state services, critics may argue that extending the surtax could deter business growth and investment. Additionally, the contingency clause that allows for the surtax to be suspended if federal corporate tax rates increase to 35% might provoke debate on whether state tax policies should adapt to changes at the federal level. This aspect will require careful consideration as it may affect budgetary planning and revenue expectations.
Carry Over
Imposes CBT surtax at rate of 2.5 percent until December 31, 2025 and requires amount collected from surtax be dedicated to specific purposes.
Imposes 30 percent electric public utility windfall surtax on certain taxpayers with allocated taxable net income in excess of 20 percent above five-year average income under CBT.
Imposes 30 percent electric public utility windfall surtax on certain taxpayers with allocated taxable net income in excess of 20 percent above five-year average income under CBT.
Provides for lifetime disqualification from operating commercial motor vehicle and transportation network company vehicle for persons convicted of human trafficking.
Provides for lifetime disqualification from operating commercial motor vehicle and transportation network company vehicle for persons convicted of human trafficking.