Tax Big Corporations To Fund NJ Transit, Some Morris Mayors Say In Letter To Murphy

MORRISTOWN, NJ — Dozens of mayors are calling on Gov. Phil Murphy and state legislators to inject more cash flow into New Jersey Transit by way of a corporate transit tax, including Morristown's Tim Dougherty.

Commuters, labor leaders, and community activists echoed this call at a rally outside NJ Transit headquarters on Thursday, while also demanding the state reinstate its full corporate business tax to invest in other services.

Dougherty joins a handful of other Morris County leaders that added their name to the letter, which expresses "deep concerns" about financial challenges facing their communities. The mayors of both Chatham Borough and Chatham Township, the mayor of Madison, and the mayor of Morris Township signed on as well as two Dover council members.

"While our towns and cities grapple with increasing costs and budget constraints, it is imperative that we address the issue of corporate tax breaks that further strain our resources, public infrastructure, and ability to meet the needs of our residents," said the coalition of mayors and other local officials in a letter released by two advocacy groups.

The state has been considering the 2.5 percent "Corporate Transit Fee" on businesses that make more than $10 million per year, providing a dedicated funding source for the cash-strapped agency's future.

NJ Transit approved a 15 percent fare hike for commuters in April, which is set to take effect on July 1, to cover a projected $119 million budget deficit in Fiscal Year 2025.

Commuters may face "catastrophic service cuts" without a stable source of income for the agency, said the more than 50 mayors, city council members, and county commissioners from around the state who signed the open letter.

Advocacy groups including For The Many NJ and New Jersey Policy Perspective have disagreed with Murphy's decision to let the state's corporate business surcharge tax expire at the end of last year, though the New Jersey Business and Industry Association said it was the "correct call."

In their letter, local leaders also pushed for the CBT to be fully reinstated, saying it "is unjustifiable that wealthy, multinational corporations continue to receive tax breaks that further exacerbate the financial burden on our towns and cities."

Other mayors signing on to the letter include: Newark Mayor Ras J. Baraka, Jersey City Mayor Steven Fulop, Hamilton Mayor Jeff Martin, Trenton Mayor Reed Gusciora, Bayonne Mayor James Davis, Plainfield Mayor Adrian O. Mapp, West Orange Mayor Susan McCartney, Kearny Mayor Carol Jean Doyle, and Montclair Mayor Sean Spiller.

See Related:

• Corporate Taxes And Public Transportation: Debate Rages In New Jersey
• NJ Transit Fare Hike Approved: See New Rates, Timing
• Controversial New Tax On Wealthy Corporations Proposed In New Jersey