On Sept. 29, Governor Phil Murphy signed New Jersey’s fiscal year 2021 budget which is $1.5 billion higher than the fiscal year 2020 budget, an increase of about 3.5 percent.
It includes $700 million in tax hikes and $4.5 billion in borrowing. When added to the “mini budget” that the Governor signed in June to cover the months of July through September, the total budget is $40.4 billion. The budget also includes a $2.5 billion surplus.
The $700 million in tax hikes includes a corporate business tax surtax of 2.5 percent on corporations with income over $1 million, giving New Jersey the highest CBT in the country. This surtax will be in effect for four years and continues a surtax that was supposed to be phased out next year.
Additionally, the budget extends the “millionaires’ tax” of 10.75 percent to income over $1 million. Previously it only applied to income over $5 million.