Sax’s Goldstein on why CTF could have bigger impact than CBT surcharge

Some feel Gov. Phil Murphy’s proposed 2.5% Corporate Transit Fee is merely a replacement for the now-sunset Corporate Business Tax surcharge.

For the biggest businesses, it might be worse — because this proposal will not sunset.

So said Richard Goldstein, a partner and state and local tax leader at Parsippany-based Sax LLP, who called it less than ideal.

The CTF will only be asked of companies with $10 million in profits or more — approximately 600, the state estimates. More than 3,000 companies were on the hook for the CBT surcharge.

Murphy, in a not-so-subtle shot at New York City’s congestion tax, boasted that New Jersey doesn’t rely on its neighbors to solve its transit problem.

“We are solving our challenges on our own,” Murphy said.

The business community, of course, likely would have preferred the other option.

Goldstein suggests New York Gov. Kathy Hochul may have preferred another option, too. After all, congestion pricing also impacts New Yorkers.

“Many disgruntled drivers who will pay the New York City congestion pricing fee to enter Midtown Manhattan starting this spring would be happier if the cost fell on someone else, including corporations,” he said. “I wonder if New York’s governor is thinking, ‘I should have pushed a corporate surcharge instead.’”