NJ Passes Budget with Corporate Transit Fee

New Jersey's Democrat-led Legislature has passed a $56.6 billion budget, which includes a tax hike on high-earning corporations to fund NJ Transit and other state programs. The budget increases the corporate tax rate from 9% to 11.5% for businesses making over $10 million annually, introducing a 'corporate transit fee' to provide a dedicated funding source for NJ Transit. The transit fee will last five years and is retroactive to January 1, 2024. The budget also includes significant allocations for K-12 education, property tax relief, and public pensions. Critics argue the process is rushed and lacks transparency, and business groups have expressed concerns over the high tax rates. Despite these objections, the budget is expected to be signed by Gov. Phil Murphy before the June 30 deadline.