New Jersey Gov. Mikie Sherrill on the 10th signed an executive order to review taxes, fees and licensing procedures and to focus support on key industries. A new New Jersey Business Economic Development Council will oversee the effort. The governor also raised again the idea of eliminating the 2.5% corporate transit fee imposed on companies with annual profits of $1 million or more.
New Jersey Gov. Mikie Sherrill signed an executive order in Trenton on Tuesday, the 10th, aimed at improving the state's business climate. The order directs senior state officials to review adjustments to tax incentives, reductions in various fees, and expanded state support for certain industries. At a news conference, Sherrill said, "Businesses will come when they can see their future here."
The executive order has four parts: improving the overall business climate, focusing support on a small number of key industries that create quality jobs, strengthening research and development (R&D), and ensuring the benefits of growth are shared evenly across the state. To carry this out, the New Jersey Business Economic Development Council will be created, chaired by Todd Fisher, senior director for strategic planning and economic opportunity in the governor's office. The council will determine which industries will receive focused support and which will be supported through general policy tools.
Kelly Doucette, the state's chief operating officer (COO), has been tasked with identifying the taxes, fees, licensing and other procedural requirements that have raised the cost of starting, operating and expanding a business, and proposing improvements. The plan also includes branding areas where New Jersey has strengths, such as pharmaceutical development and manufacturing, and using that branding to attract businesses. Tom Bracken, president of the New Jersey Chamber of Commerce, welcomed the order in a statement, saying, "We will work together to make sure the strategy leads to real results."
Will the 2.5% Corporate Transit Fee Be Eliminated?
Sherrill did not present specific tax law changes on the day. She did, however, restate her idea of eliminating the corporate transit fee introduced in 2024 to fund NJ Transit. The fee, an additional 2.5% on companies with annual profits of $1 million or more, is expected to raise $814 million this fiscal year and expires at the end of 2028. The governor's position is to replace it by creating new revenue sources from state-owned land near NJ Transit stations, but when and to what level that revenue will grow remains unclear.
New Jersey has the highest state corporate tax rate in the nation for companies with annual profits of $1 million or more, and ranked 50th in "business friendliness" (31st overall) in CNBC's state-by-state business climate ranking. State Sen. Paul Sarlo (D-Bergen), chair of the Senate Budget Committee, said he supports the governor's plan for the fee, stating, "Raising business taxes is not up for discussion."