Andrew Musick, Vice President, Taxation & Economic Development
Hello everyone,
Earlier this afternoon, Senate President Steve Sweeney held a press conference where he stated that Democratic leadership in the Senate and the Assembly would add two new revenue sources to help end the budget stalemate.
The proposal would include an extension of the proposed CBT surcharge from two years to four. The CBT surcharge increases remain the same. For corporations earning between $1 million and $25 million, the rate would rise from 9 to 11.5 percent. Corporations earning in excess of $25 million would pay 13 percent.
The proposal also includes an expansion of the tax on short-term rentals (extending the current budget proposal beyond online rentals) and an increase in the realty transfer tax on property sales over $1 million from 1 percent to 2 percent. These two proposals are expected to generate an additional $360 million.
Additionally, both the Senate and Assembly voting sessions scheduled for tomorrow have been cancelled. Both houses are scheduled to be in session on Friday, June 29, 2018.
Please find a few articles below outlining the ongoing budget negotiations in New Jersey:
- N.J. Dems offer tax on shore rentals, home sales in budget showdown
- Sweeney Counters with Seasonal Rental Home Tax, 1% Increase in Realty Transfer Fees (Includes budget reconciliation charts)
We will continue to keep you updated on matters as they progress. Constitutionally, a FY 2019 budget must be passed by the Legislature and signed by the Governor by July 1, 2018. If you have any questions, please contact me at AMusick@njbia.org.
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