New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S3513

Introduced
6/26/24  
Refer
6/26/24  

Caption

Imposes 2.5 percent corporate transit fee on taxpayers with allocated taxable net income in excess of $10 million under CBT.

Impact

The implementation of the Corporate Transit Fee is expected to significantly augment the revenue stream for the New Jersey Transit Corporation. Consequently, this revenue will support both operational costs and necessary matching funds to obtain federal support for infrastructure upgrades. As a result, local transit services may see improved funding, which could enhance public transportation efficacy across New Jersey. The fee is anticipated to benefit transportation infrastructure at a time when many states are reevaluating funding sources for public transit.

Summary

Senate Bill 3513 introduces a Corporate Transit Fee of 2.5% on corporation business tax (CBT) taxpayers with allocated taxable net income exceeding $10 million, applicable for privilege periods from January 1, 2024, to December 31, 2028. This fee is structured to be an additional tax over the regular CBT liability for qualifying businesses, designed to enhance funding for New Jersey Transit operations and state matching fund requirements for federal capital projects. Notably, the fee does not apply to S corporations and public utilities.

Contention

On the legislative front, the bill might encounter opposition from business groups concerned about additional taxation, especially during economic recovery phases. Critics may argue that the surcharge could burden larger businesses, especially those operating close to the income threshold. Whether the fiscal benefits to public infrastructure justify the additional tax burden on corporations will likely be a contentious discussion among stakeholders, including taxpayer advocacy groups. The exclusion of S corporations from this fee could also lead to debates about fairness and equity in taxation policies within the state.

Companion Bills

NJ A4704

Same As Imposes 2.5 percent corporate transit fee on taxpayers with allocated taxable net income in excess of $10 million under CBT.

Previously Filed As

NJ A4704

Imposes 2.5 percent corporate transit fee on taxpayers with allocated taxable net income in excess of $10 million under CBT.

NJ A5707

Imposes 10 percent electric public utility windfall surtax on taxpayers with allocated taxable net income in excess of $10 million under CBT.

NJ S4483

Imposes 10 percent electric public utility windfall surtax on taxpayers with allocated taxable net income in excess of $10 million under CBT.

NJ A5518

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.

NJ S4592

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.

NJ A3102

Allows taxpayers to deduct cost of certain depreciable assets under corporation business and gross income taxes.

NJ A4009

Imposes CBT surtax at rate of 2.5 percent until December 31, 2025 and requires amount collected from surtax be dedicated to specific purposes.

NJ A5878

Imposes CBT surtax at rate of 2.5 percent until December 31, 2025 and requires amount collected from surtax be dedicated to specific purposes.

NJ S3757

Permits deduction of 20 percent for qualified business income for certain individuals as owners of pass-through entities under gross income tax and corporation business tax.

NJ A2706

Eliminates requirement that taxpayer that qualifies as S corporation for federal tax purposes affirmatively elect New Jersey S corporation status for purposes of corporation business and gross income taxes.

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