Governor Phil Murphy, Senate President Steve Sweeney and Assembly Speaker Craig Coughlin came to terms on tax increased in the New Jersey FY2019 Budget today, averting a shutdown of state government.
While the Senate and General Assembly will not vote on the budget legislation before the midnight deadline tonight, Murphy said that he will not close the government. Sweeney and Coughlin announced that their Chambers will be in session at 8:00 a.m. on Sunday morning.
Under the budget deal announced by the Democrat leaders this evening, New Jersey resident with over $5 million in earnings will see their state income tax rise to 10.75%.
Corporations will have a 2.5% business tax surcharge for two years, followed by a 2% surcharge in FY2021 and 1.5% in FY2022, before phasing out entirely. The Democrats did not announce an income threshold on the CBT.