NEWARK, NJ–(May 23, 2024)–The Essex County Board of Commissioners adopted a resolution, advanced by Commissioner-at-large Brendan Gill, urging New Jersey Gov. Phil Murphy and state lawmakers to enact the Corporate Transit Fee, which would fund NJ Transit by ensuring New Jersey’s wealthiest corporations paid their fair share of taxes on profits earned within the state.
NJ Transit is currently facing a $1 billion budget shortfall operating deficit, partially caused by the expiration of the Corporate Business Tax, which lowered taxes for large corporations. The CTF would raise taxes only on corporate profits above $10 million, and dedicate those funds to keeping public transportation accessible, available and affordable to working families who most rely on public transportation, and who would be disproportionately burdened by the higher fares and reduced services that would result from the funding deficit. The resolution urges Gov. Murphy and state lawmakers to pass the CTF as part of the legislation they must pass as part of current budget negotiations.
“Transit riders are already facing a 15 percent fare hike to cover this budget shortfall, and without a stable revenue source, NJ Transit will be facing severe reductions in service,” said Commissioner Gill. “Our working families deserve reliable and affordable service, but don’t deserve to shoulder this entire burden. The Corporate Transit Fee will affect only the 600 wealthiest corporations, and only taxes profits above $10 million. We can avoid these catastrophic impacts to our public transit simply by asking our wealthiest corporations to pay their fair share,” Gill said.
A Lifeline for Low-Income Households
“A well-funded and better operating mass transit system can be a lifeline for low-income households, a catalyst for economic growth, and a crucial ally in the fight against climate change, which is why we are calling on state leaders to ensure that corporations profiting from New Jersey’s consumer base contribute to New Jersey Transit”, said Eric Benson, an Essex County resident and Campaign Director of For the Many NJ, a coalition of housing, environmental, labor, and social justice advocates working to insure the state has adequate revenue for critical infrastructure, public transit, and people support investments.
“Especially in light of the 15 percent regressive fare hike riders are facing starting on July 1st, it is only fair that wealthy corporations pay what they owe in order to help keep Essex residents and fellow New Jerseyans moving,” Benson said.
As Commissioner-at-Large, Brendan Gill represents all 22 municipalities in Essex County. He is serving his fifth term on the ECBCC and is a lifelong resident of Montclair.
