Jersey City Payroll Tax Measure Set for Assembly Vote

The State Assembly is set to vote today on a bill (A4163) to allow municipalities with populations over 200,000 to impose a 1% employer payroll tax.

The bill targets Jersey City. Only Newark and Jersey City have populations that large, and Newark already has a payroll tax.

Senate President Steve Sweeney, who has been advocating for Jersey City and other communities that haven't paid their local fair share in school funding to ramp up their payments, supports the bill. The tax would not apply to public employers, and exemptions could be made for workers, who live in the municipality.

Current law does not explicitly provide that a municipality may change the rate of an employer payroll tax so long as the rate does not exceed one percent. This bill would also explicitly allow a municipality to make that change.

The upper chambers companion measure (S2581) is pending consideration in full Senate after being amended on the floor earlier this month.