State Treasurer Andrew P. Sidamon-Eristoff this morning gave New Jersey Chamber of Commerce members a briefing of Gov. Chris Christie's proposed $34.4 billion budget for the upcoming fiscal year - and he touted the Christie administration's continuing efforts to reduce business taxes.
The briefing came during a New Jersey Chamber of Commerce Breakfast Roundtable in Monroe.
The proposed fiscal budget, which begins July 1, continues the phase-in of two business tax reform initiatives that the New Jersey Chamber has long championed: a single sales factor formula for determining Corporate Business Tax liability and providing a net operating loss carry forward for small businesses.
This follows other positive business tax reforms that are in the current fiscal year's budget: reducing the minimum tax on S-corporations; fully funding the Research & Development Tax Credit; and phasing out an energy tax called the Transitional Energy Facility Assessment.
"The Christie administration has provided New Jersey's businesses with more than $2.2 billion in tax relief" since 2011, Sidamon-Eristoff said. "That's a significant achievement that we are proud of. But we are aware that the budget must be fair and consistent"
He said the proposed budget clarifies existing tax laws to close loopholes, such as requiring out-of-state online retailers to collect sales tax from New Jersey customers. This move has been supported by brick-and-mortar retailers who say they are at a competitive disadvantage because Internet customers often don't pay sales tax as required, Sidamon-Eristoff said.
The budget also calls for assessing the same civil and criminal penalties for passing "bad" electronic payments that are assessed on those who pass "bad" checks.
Chamber lobbyists will continue to monitor the budget process and advocate for a budget that supports New Jersey's employers and strengthens the business climate. The State Constitution mandates that the Legislature must pass and the governor must sign a budget bill by July 1.
Meanwhile the treasurer said the state government has spent $100 million on snow removal this year, three times the cost in a typical winter. That is an expense, of course, that cannot be controlled, even through executive order, the treasurer said.
A special thank you to Prudential for sponsoring the event.