Budget & Taxes in New Jersey

in committee · New Jersey · General Assembly Jan 13, 2026

A 2991: Phases out the transfer inheritance tax over two years.

This bill phases out New Jersey's inheritance tax over two years. It reduces the tax to 50% of current rates for inheritances received in the first full year after the bill takes effect, then eliminates the tax entirely for all inheritances in the second year. The tax primarily affects non-family inheritances (such as transfers to siblings, nieces/nephews, or unrelated individuals), as the law already exempts transfers to spouses and direct descendants. The change applies to all estates of New Jersey residents and nonresidents with property in the state, following the tax's 1892 origin and 1985 revisions.

Topics ✗ Budget & Taxes

in committee · New Jersey · General Assembly Feb 19, 2026

A 4167: Limits use of State, county, and municipal property or funding to support immigrant detention facilities.

This bill prohibits New Jersey state and local governments (including counties and municipalities) from using public funds or property to support immigrant detention facilities. Specifically, it bans state/local spending on constructing, renovating, or leasing public property for detention, paying private facility costs, or covering detention expenses for privately-owned facilities. The law allows public health and safety resources for detained individuals but does not affect existing detention operations. It directly affects state/local budgets and property decisions related to immigration enforcement. The bill takes effect immediately upon enactment.

Topics ✗ Budget & Taxes ✓ Criminal Justice ✓ Immigration

Sub-Topics Detention Enforcement Sanctuary Policies

in committee · New Jersey · General Assembly Jan 13, 2026

A 174: Prohibits State funding to assist immigrants facing detention or deportation.

This bill prohibits New Jersey state funds from being used to provide legal assistance or services to immigrants facing detention or deportation based on their immigration status. It applies to all state contracts, grants, or funding agreements with public agencies or nonprofit organizations offering such legal help. The law takes immediate effect and blocks funding that would otherwise support legal representation for immigrants in immigration proceedings. It directly affects immigrants seeking legal aid in deportation cases and organizations that provide such services using state resources. The bill does not change immigration law but restricts state financial support for related legal services.

Topics ✗ Budget & Taxes ✗ Immigration

Sub-Topics Detention Enforcement Sanctuary Policies

in committee · New Jersey · General Assembly Jan 13, 2026

A 2666: Provides temporary deduction for food and beverage establishments from certain sales and use tax remittances.

This bill provides a temporary sales tax deduction for qualifying food and beverage businesses in New Jersey. It allows restaurants (excluding fast-food), mobile food vendors (like food trucks), and alcohol establishments to deduct up to $70,000 in collected sales tax per business location per month during a four-month relief period. Businesses can claim this deduction for up to five locations or vehicles, but the deduction cannot exceed taxes actually collected that month. The relief period begins two months after the bill's effective date and ends five months after enactment.

Topics ✗ Budget & Taxes

Sub-Topics Sales Tax

in committee · New Jersey · General Assembly Jan 13, 2026

A 2654: Gradually reduces CBT rate.

This bill gradually reduces New Jersey's Corporation Business Tax (CBT) rate for corporations filing tax returns. It lowers the standard tax rate from 7% for tax years ending after December 31, 2020, to 5% in 2021, 3% in 2022, and 2.5% in 2023. Small New Jersey S corporations with net income under $100,000 will see reduced rates (3.5% for 2020-2021, 2.5% for 2021 onward). The changes apply to corporations calculating tax under existing law, modifying the rate schedule in Section 5 of P.L.1945, c.162.

Topics ✗ Budget & Taxes

Sub-Topics Business Taxes

in committee · New Jersey · General Assembly Jan 13, 2026

A 923: Adjusts price threshold for titling fee for new luxury vehicles.

This bill (A 923) increases the price threshold for New Jersey's luxury vehicle titling fee from $45,000 to $70,000. It applies a 0.4% fee on new passenger cars priced at or above $70,000 (before rebates/trade-ins) or with fuel efficiency under 19 MPG. The fee is collected at purchase, separate from sales tax, and will be adjusted for inflation annually using the Consumer Price Index for "New Vehicles." It directly affects buyers of new luxury cars in New Jersey, reducing the fee's scope by raising the price threshold.

Topics ✗ Budget & Taxes

Sub-Topics Sales Tax

in committee · New Jersey · Senate Feb 19, 2026

S 3594: Provides temporary deduction for food and beverage establishments from certain sales and use tax remittances.

This bill provides a temporary tax break for eligible food and beverage businesses in New Jersey. It allows qualifying establishments - such as sit-down restaurants (excluding fast food), breweries/wineries/distilleries, and mobile food trucks/carts - to deduct up to the amount of sales tax collected on the first $70,000 of taxable sales per location each month during a four-month relief period. Businesses can claim this deduction for up to five locations or vehicles, but must retain the collected tax amounts they deduct. The relief period begins two months after the bill’s enactment and ends five months after enactment.

Topics ✗ Budget & Taxes

Sub-Topics Sales Tax Tax Incentives

in committee · New Jersey · Senate Feb 12, 2026

S 3500: Reduces allowed diversion of funds from stormwater, water, and sewer purposes to municipal and county budgets; requires municipalities and counties to notify Division of Local Government Services of diversions.

S 3500 reduces how much money municipalities and counties can transfer from stormwater, water, and sewer utility funds to their general budgets, lowering the limit from 5% to 3% of the utility's annual operating costs. It directly affects local governments that operate these utilities or authorities, requiring them to notify the Division of Local Government Services in the Department of Community Affairs whenever they make such transfers. The bill modifies existing laws (P.L.1983, c.111 and P.L.2004, c.87) to implement this change and add the notification requirement. This is a concrete policy change focused on restricting fund diversions and increasing transparency.

Topics ✗ Budget & Taxes

Tags Local Government

in committee · New Jersey · General Assembly Feb 12, 2026

A 4069: Exempts sales of tangible personal property made from 100 percent post-recycled waste and recycled materials from sales and use tax.

This bill exempts the retail sale of tangible personal property made from 100% post-recycled waste or recycled materials (such as recycled bricks, asphalt, and crushed concrete) from New Jersey's sales and use tax. It defines "post-recycled waste" as materials salvaged from general waste and processed into raw materials, and "recycled materials" as products made from post-consumer waste. The exemption applies directly to retailers selling these specific recycled products, reducing their sales tax burden. The bill takes effect two months after enactment for all qualifying sales.

Topics ✗ Budget & Taxes ✓ Environment

Sub-Topics Sales Tax Recycling

in committee · New Jersey · General Assembly Jan 13, 2026

A 887: Prohibits EDA from issuing subsidies for wind energy projects.

This bill prohibits the New Jersey Economic Development Authority (EDA) from providing any financial assistance - including grants, loans, tax credits, or other subsidies - to wind energy projects. It directly affects wind energy developers who would have sought EDA funding for project development or operations. The key mechanism removes wind energy projects from eligibility under the EDA’s existing funding allocation for renewable energy, specifically deleting references to "qualified offshore wind projects" from the 60% funding allocation meant for energy efficiency and renewable projects. This change shifts EDA funding priorities away from wind energy toward other renewable and energy efficiency initiatives. The bill also repeals prior provisions that allowed wind project subsidies.

Topics ✗ Budget & Taxes ✗ Energy ✗ Environment

Sub-Topics Appropriations Energy Efficiency Renewable Energy Wind

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