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New Jersey Governor Releases Fiscal 2021 Revised Budget Proposal

Dated Aug. 26, 2020

SUMMARY BY TAX ANALYSTS

New Jersey Gov. Phil Murphy (D) released his proposed revisions to the fiscal 2021 budget to compensate for revenue shortfalls and economic challenges caused by COVID-19, including imposing a tax on all income over $1 million, extending the corporation business tax (CBT) surcharge, restoring the sales tax on limousines, removing the tax cap on yachts, and introducing a surcharge on qualified business income.

Gross income tax, corporation business tax, and sales and use tax collections for fiscal 2020 are projected to be $303.1 million, $419.8 million, and $496.1 million above the May 22 preliminary forecast, respectively.

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