Alliance of Local and Regional Chambers Oppose Proposed Business Tax Increases

Join fellow NJ Chamber executives for a day of camaraderie and connections

A Look at Some Recent NJ Chamber Events

NJ Chamber Member Mixer

2024 NJ Chamber Women of Inspiration Awards Reception

The Walk to Washington

Featured News

: May 01, 2024

NJ Chamber is Joined by 40 Local and Regional Chambers of Commerce to Oppose Business Tax Hikes. Read The Letter We Sent to Legislators

The N.J. Chamber of Commerce is being joined by over 40 local and regional chambers of commerce statewide to oppose the proposed "Corporate Transit Fee" on New Jersey's large companies, and the proposed "buck-a-truck" tax on trucks that deliver goods to and from warehouses in the state. Both measures are contained in the proposed state budget that was put forward by Gov. Murphy and is currently being considered by the state Legislature.

The Chamber Alliance is also opposing funding cuts to state agencies that support economic growth – the New Jersey Economic Development Authority, New Jersey Business Action Center and New Jersey Small Business Development Centers. This coalition of 40 chambers represents a substantial percentage of the state employers who believe these moves would damage New Jersey's business climate, undermine the state's corporate recruiting and retention efforts, and jeopardize good-paying jobs.

Attached below is a copy of the Chamber Alliance's letter that was delivered to legislators today.

May 1, 2024

Dear Members of the New Jersey Legislature,

The Chamber Alliance, a coalition convened by the New Jersey Chamber of Commerce and consisting of the state’s local and regional chambers of commerce, write to express our serious opposition to the Governor’s Fiscal Year 2024-2025 proposed State Budget, which is harmful to the business community and will result in a negative ripple effect on our state’s economy. The combined membership of the cosigned chambers encompasses a large share of the New Jersey Business Community.

Due to the Corporate Transit Fee our largest employers, who are also our biggest non-profit philanthropists, are being saddled with a completely unwarranted tax increase – the dollar amount of which is more punitive to those affected than the recently expired CBT surcharge. It is simply a more egregious and expensive extension of the surcharge. As a result of the Buck a Truck tax, one of the fastest growing segments of our economy, the logistics industry, is being slapped with what can only be described as a nuisance tax, which will increase costs for all New Jersey residents.

In addition to that, several state agencies that have been extremely helpful to the business community are having funding cuts. The budget will provide less support to an already overtaxed and over-regulated business community. Those agencies being cut are the New Jersey Economic Development Authority, New Jersey Business Action Center, and The New Jersey Small Business Development Centers. The biggest threat to our state right now is the future of our economy. Right now revenues are trending down, while expenses are going up. Yes, we have had several bond increases, yes we have jumped to No. 19 in the CNBC “Best States for Doing Business” poll, but none of that has been produced by a strong, growing, vibrant business climate. It was accomplished with Federal COVID dollars and bond proceeds.

What do we need to do? Look no further than what the bond rating agencies said in all of their reports. We must create recurring, reliable, organic, growth-oriented sources of income to continue to maintain the economic prosperity of New Jersey. The only way to do that is through a growing, vibrant, and attractive business economy. This budget is in opposition to all of that. It begins to reverse the economic momentum we have. It also hurts our reputation as a business-friendly state. It also creates a lack of confidence for our business leaders that the state will not follow through on commitments they have made. And, it makes our state more expensive and less competitive.

The Coalition issues the following recommendations:

Reinvest the $6 billion dollar surplus as opposed to letting it sit idle. We should use this money before adding new taxes.
Remove the Corporate Transit Fee. The $1 billion can easily be found in a $56 billion budget through a surgical approach looking at all budget categories. An additional tax on corporate revenue, is not a stable source of funding.
Eliminate the “Buck a Truck” Tax. It is a $10 million add to the budget, in a $56 billion budget. The funds raised from this tax will be a drop in the bucket and will undermine economic growth.
Restore the money to the Economic Development Authority, the Business Action Center and the Small Business Development Centers.

Our economic future needs to be addressed in this budget. As currently stated, it is void of that. This is an opportunity that we cannot waste. This business community has been asking for these things for years and we need to begin to look at ways to fund those. We must pivot to begin to create a stronger economy. You cannot grow anything unless you feed it. We are not only NOT feeding the business community, we are starving it. With that in mind, we urge you to oppose these proposed measures in the budget and support measures that will strengthen the business community, ultimately strengthening New Jersey.

Best,

Thomas A Bracken FL