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Special issue of NJ Chamber Insider dedicated to coverage of the proposed state budget.
Tax and spending increases mark Gov. Murphy’s final NJ budget plan
Gov. Phil Murphy yesterday proposed a $58 billion state budget, a record-high spending plan, that calls for increased spending in K-12 public schools, mass transit, direct property-tax relief benefits and public-worker pension funds. The overall fiscal plan Murphy unveiled on Tuesday also counts on a series of tax and fee hikes the governor is asking lawmakers to approve. These proposed increases include higher taxes on alcohol, cigarettes, online gambling and sports betting, according to a Murphy administration. Murphy’s budget announcement is the start of a process that includes negotiations with legislative leaders. The budget must be adopted by June 30. (NJ Spotlight News)
A summary of the governor's budget recommendations
Read the budget in brief here. (N.J. Treasury)
NJ Chamber on budget: 'It mirrors those in each of our last seven years'
"After warnings that the proposed 2026 state budget would contain significant cuts, at first glance, it closely mirrors those in each of our last seven years," said Tom Bracken, president and CEO fo the N.J. Chamber of Commerce. "It includes additional spending and increases in programs bolstering the “"airer" side of our economy, but once again, little assistance to the business community to enable them to generate the sustainable revenue needed to pay for everything." See full statement. (N.J. Chamber of Commerce)
Murphy wants to raise special cannabis tax from $2.50 to $15 an ounce
The budget calls for raising a special tax on cannabis from $2.50 to $15 an ounce to fund social service and violence intervention programs with tens of millions of dollars in new revenue. The tax, known as the social equity excise fee, is paid by cannabis cultivators. The money goes to a fund for social equity programs and investing in communities hurt by marijuana prohibition, and another portion is allocated to programs to divert youth from cannabis. (New Jersey Monitor)
Budget proposes doubling tax rate on online sports wagering to 25%
The budget, if passed, would double the tax rate on online sports wagering companies, from 13% to 25%. Gov. Murphy did not mention the increase during his speech, but administration officials acknowledged it’s in the budget – and projected the increase in tax will generate an additional $80 million in revenue. (ROI-NJ)
Budget calls for new or more taxes on trucks, drones, and firearms
The proposed budget includes a $2 per truck "excise fee" imposed on warehouses in New Jersey, projected to raise $20 million of revenue. There is also a new excise tax on the purchase of "certain unmanned aircraft systems" – better known as "drones;" and tax hikes on firearms and ammunition sales, projected to generate an additional $7.8 million. (ROI-NJ)
Murphy suggests that the state increase Angel Investor tax credit to 30%
Gov. Murphy aims to encourage the Legislature to bring New Jersey in line with almost every state in the nation by recognizing the federal tax benefit called QSBS, which stands for Qualified Small Business Stock exemption. In the simplest terms, it allows early investors – upon sale of the company – to get tax relief on the capital gains from the first $10 million (or 10x the basis of the company) of the sale. Administration officials said the potential change is not so much a change in policy as a recognition that a changed policy is needed – since the state is developing so many more startups. (ROI-NJ)
The governor wants to add $20M to fund Strategic Innovation Centers
Gov. Murphy wants to provide an additional $20 million to support Strategic Innovation Centers – facilities that support R&D and entrepreneurship through mentorship, networking, training, business support services and education. The funding could help open two or three more centers – to go with the ten centers already open, including three introduced this year: At Coriell Institute for Medical Research in Camden, at Nokia Bell Labs in Berkely Heights/New Brunswick and at Princeton. (ROI-NJ)
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